Three-way transaction, that I am not sure how to handle...

[Dawning Sky]

On 9/19/06, Jack Whale <jackwhale at hotmail.com> wrote:
> In that case, and again I'm no accountant, I would enter it as shown in the
> screenshot that I have attached.
>

Two questions:

1. Why do you treat paypal as a liability.  It's more like an asset in
my opinion.
2. I suppose what paypal does is that it first draws from the bank
account $100, and then credit $1 rebate to the paypal account.

DS


> jw
>
>
> >From: Robert Heller <heller at deepsoft.com>
> >To: "Jack Whale" <jackwhale at hotmail.com>
> >CC: gnucash-user at gnucash.org, Robert Heller <heller at deepsoft.com>
> >Subject: RE: Three-way transaction, that I am not sure how to handle...
> >Date: Tue, 19 Sep 2006 07:00:17 -0400
> >
> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <jackwhale at hotmail.com>
> >wrote:
> >
> > >
> > > Nor am I an accountant.
> > > I was wondering, though, whether PayPal does this all at once with each
> > > transaction or if it draws out of your checking account and pays the
> >rebate,
> > > say, once a month(or week, or day)?
> >
> >They record it as three sucessive transactions, for each debit card
> >usage.  I guess if I had a suffiencient balance in my PayPal account, it
> >would only be two transactions.
> >
> > > jw
> > >
> > > >From: Robert Heller <heller at deepsoft.com>
> > > >To: Gnucash <gnucash-user at gnucash.org>
> > > >Subject: Three-way transaction, that I am not sure how to handle...
> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
> > > >
> > > >I recently set myself up with a PayPal Debit card, which I am using to
> > > >pay for recurring business expenses.  Because I also have a PayPal
> > > >button on my web site, I am getting 1% cash back.
> > > >
> > > >I generally don't carry a balance on my PayPal account, so the funds
> >are
> > > >drawn from my (business) checking account as a 'backup funding source.
> > > >
> > > >Now what happens is this: PayPal performs three transations:
> > > >
> > > >1) Pays the charge.
> > > >2) Transfers the needed amount from my checking account to cover the
> > > >charge.
> > > >3) Awards the cash-back amount to the PayPal account.
> > > >
> > > >Right now, I have two regular transactions, a transfer from my checking
> > > >account to the PayPal account and a transfer from the PayPal account to
> > > >the payee (I have not put in a transaction for the cash back yet).
> > > >
> > > >Does it make any sense to bundle the whole transaction sequence as a
> > > >split transaction?  Or should I just have three transactions? If the
> > > >former, I am not totally sure what the split transaction will look
> >like.
> > > >
> > > >--
> > > >Robert Heller             -- 978-544-6933
> > > >Deepwoods Software        -- Linux Installation and Administration
> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> > > >heller at deepsoft.com       -- Contract Programming: C/C++, Tcl/Tk
> > > >
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> >
> >--
> >Robert Heller             -- 978-544-6933
> >Deepwoods Software        -- Linux Installation and Administration
> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> >heller at deepsoft.com       -- Contract Programming: C/C++, Tcl/Tk
> >
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