How to make a provision?

[mvillarino]

O Martes 16 Novembro 2004 18:43, David Harrison escribiu:

> No, problem.  It's actually pretty good!

Thanks

>
> Here's my attempt:
>
> b) this is the monthly accrual of the provision:
> 6223 Car repair and maintenance      4,33
>        143 Provision to change tires                4,33
>
> c) I'm not sure how account 400 ties in, but this is what I would do:
> 143 Provision to change tires             99,49
>       ??? Bank account                                   99,49
>
> d) The remaining balance in the provision account:
> 143 Provision to change tires             xx,xx
>        790 Excess of provision                          xx,xx
>
> If it were me, instead of crediting account 790 "Excess of provision"
> in (d), I would credit 6223 "Car repair and maintenance".  The reason
> for this is that I have over-accrued the expense.  Either way, your
> net income would be the same.  But if you use account 790, both your
> income and expenses would be overstated.
>
> Hope this helps.
>
> Dave
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Well, finally, and inspired by your reply,  I decided to do it my way, not so 
academic but it's simple and it works:

1.- I created the following accounts, some of wich were already existant:

 Assets:Bank Account
 Liability:Provisions:Car:Tires
 Income:Provisions
 Expenses:Provisions:Car:Tires
 Expenses:Car:Planned Maintenance
 Expenses:Car: Maintenance not planned.

2.- I created the following scheduled transaction:
 Description "Capital Reserve to Change Tires"
 Expenses:Car:Planned Maintenance 4,33 Withdrawall
 Liability:Provisions:Car:Tires 4,33 Deposit

3.- When the moment comes, I'll enter the following splitted transaction:
 Into Ledger "Expenses:Car:Planned Maintenance"
 Description "Tires"
from:  Expenses:Car:Planned Maintenance +100,00 EUR
to:  Assets:Bank Account    -100,00 EUR
And:
from:  Liability:Provisions:Car:Tires  -100,00
to:  Expenses:Provisions:Car:Tires +100,00 
(The balances of both accounts decreases this quantity)
Finally:
from:  Expenses:Provisions:Car:Tires - Remainder Balance
to:  Income:Provisions   + Remainder Balance


Thanks again,

Marce