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

[Sergey Okhapkin]

I treat paypal like a regular bank account (in Asset category). Paypal allows 
you to download transactions in qif format. Transfer between paypal and 
checking account or CC is just a regular transfer between accounts.

On Tuesday 19 September 2006 16:47, Jack Whale wrote:
> I hate when I do that! This time it IS attached
>
>
> Well, my ignorance of PayPal knows no bounds. I did my figurin based on how
> he appeared to use it.
> So, if Paypal, in general, has a positive balance, let's
> 1) call it an Asset
> 2) leave a positive balance after rebate
>
> Attached is another stab.
>
> >From: "Dawning Sky" <the.dawning.sky at gmail.com>
> >To: "Jack Whale" <jackwhale at hotmail.com>
> >CC: heller at deepsoft.com, gnucash-user at gnucash.org
> >Subject: Re: Three-way transaction, that I am not sure how to handle...
> >Date: Tue, 19 Sep 2006 10:04:47 -0700
> >
> >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
> >> > > >
> >> > > >_______________________________________________
> >> > > >gnucash-user mailing list
> >> > > >gnucash-user at gnucash.org
> >> > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >> > > >-----
> >> > > >Please remember to CC this list on all your replies.
> >> > > >You can do this by using Reply-To-List or Reply-All.
> >> > >
> >> > > _________________________________________________________________
> >> > > Express yourself - download free Windows Live Messenger themes!
> >> >
> >> >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http:
> >> >//imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtaglin
> >> >e
> >> >
> >> >
> >> >
> >> >--
> >> >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
> >>
> >>_________________________________________________________________
> >>Add fun gadgets and colorful themes to express yourself on Windows Live
> >>Spaces
> >>http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://
> >>www.get.live.com/spaces/features
> >>
> >>
> >>_______________________________________________
> >>gnucash-user mailing list
> >>gnucash-user at gnucash.org
> >>https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >>-----
> >>Please remember to CC this list on all your replies.
> >>You can do this by using Reply-To-List or Reply-All.
>
> _________________________________________________________________
> Try the new Live Search today!
> http://imagine-windowslive.com/minisites/searchlaunch/?locale=en-us&FORM=WL
>MTAG