Newbie How-To Questions on Credit Cards & Vendors and Cost-Centres
Peter C. Pugh
peter.pugh at mac.com
Thu Oct 12 08:16:30 EDT 2006
Hello,
I have searched Google a number of times to try and find an answer to
this question. Sorry if I have overlooked any previous postings.
I am trying to establish how to use Vendors in conjunction with
Credit Cards. I.e. ...
1. You go to a supplier and purchase an item. The Supplier is
defined as a Vendor in GNUCash.
2. You enter the purchase against the appropriate Vendor and record a
payment which is settled through a Credit Card.
3. The Vendors transaction goes to the associated Expense account and
as a Credit Card Liability.
4. You then get the Credit Card statement with the charge showing for
the purchase.
5. A payment is made to the Credit Card company, although it is late.
6. This ISN'T paid in full in that period -- hence it attracts an
interest charge in the following period.
7. Subsequently, due to the late payment, there is also an additional
charge applied by the Credit Card company.
Essentially, what I am trying to understand is the appropriate
structure that should be in-place to support such a transaction
scenario. Should the Credit Card company also be registered as a
Vendor to reflect the associated Interest and Late Payment charges?
With Vendors in place, should the Credit Card company's statement be
settled as a Vendor account, or just as a Credit Card Liability
account? Should the original transaction even be processed as a
Vendor transaction, or straight to the Credit Card account, bypassing
the Vendor phase entirely?
An additional question as well please ...
How do you track expenses back to the individual that made the
purchase? I.e. Define a Cost/Profit Centre for each member of the
organisation who may be making purchases or settling accounts?
Currently I use a structure like ..
Expense
|
|---Miscellaneous
|
|---CC-1
|---CC-2
|---etc.
|
|---etc.
Is there any other way to record a Cost-Centre type structure or Cost-
Centre type information?
For your information, I am using GNUCash 2.0.1 on a MacBook Pro. I
am using it for personal and small business (sole trader) accounts.
The reason I am wanting to use Vendors is so that I can track not
just the nature of each transaction -- the expense type -- but also
the places that the expenses are incurred. As well as that, I often
work on a project basis, and need to be able to relate some expenses
back to a client for billing purposes.
Thank you.
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