question about income account when a sale occurs

[Derek Atkins]

John Griessen <john_g at cibolo.com> writes:

> Hello,
>
> I mostly do service, and sometimes inventory materials and sell them.  I use 
> hand written invoices often and wish to skip using a gnucash invoice on many 
> simple sales of service and materials, so I create two transactions when I buy 
> material, first I transfer from asset:checking to COGS, then transfer from COGS 
> to asset:inventory.   When I receive a payment for that invoice, I am creating a 
> split transaction with portions allocated to income:services and income:sales.
>
>
> This is where I am confused...  I want to decrease inventory, so I make a 
> trasaction transfer from asset:inventory to asset:checking in the amount of a 
> sale, but how to have  account income:sales increase just as income:services does?

I think you're accounting for COGS improperly..  When you buy
inventory it's a straight shot from Checking -> Inventory.  Then when
you use inventory you account for it as inventory -> COGS.  When
you're paid it's income -> checking.

Also note that by bypassing the gnucash invoices you are denying
yourself access to the Aging and Customer reports.

-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