Inventory and GST

[Derek Atkins]

George Osvald <mail at okstudio.com.au> writes:

> Two questions:
> How do I set up an Inventory of all products (broken down to parts if 
> possible)? Do I create a normal account under assets with all the products 
> and descriptions?
> Is quantity pricing possible in GNUcash?

GnuCash has no Inventory system.  You can either keep track of your
widgets like "stocks", or you can just keep an Inventory "Asset"
account that maintains your purchase-price value, and keep your actual
inventory elsewhere.

> How to set up GNUcash for Australian GST? I am using cash GST system and GST 
> is calculated only at the time of the transaction. I have to report GST paid 
> and received every quarter and then get a refund or pay. 
> Could I set two GST tax accounts. one for credits and another one for 
> payments? Then I would check all customers that GST applies to with GST 
> collected tax account and all the vendors with GST paid tax account.
> I would also need two AR/AP accounts. AR with GST, AR GST Free, AP with GST 
> and AP GST Free. Maybe another global AR and AP for totals without taxes.
> 
> 
> Is this correct or am I overcomplicating it?

you are over-complicating it.  You will need "GST collected" and "GST
paid" accounts, but then you can set up two Tax Tables, one for
"Customer GST" and one for "Vendor GST".  Then set each Customer and
Vendor with the appropriate Tax Table.  Their invoices will
automatically have the Tax Table applied.

You do not need separate AR/AP accounts.

I will note that this is recorded on a accrual basis, not a cash
basis.  To compute the cash basis you would need to look at any period
and add in invoices from a previous period that were paid in this
period, and then subtrace out any invoices posted this period that
have not yet been paid.  Unfortunately GnuCash does not do this yet --
it's on the list for future versions.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available