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

[Robert Heller]

At Tue, 19 Sep 2006 10:04:47 -0700 "Dawning Sky" <the.dawning.sky at gmail.com> wrote:

> 
> 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.

Yes, paypal shows three transactions:

1) payment of charge on the debit card (eg $100)
2) transfer from bank account to paypal acount (eg $100)
3) credit to paypal account of 'cash back' (eg $1)

When all is said and done, the charge has been paid in full, the bank
account is reduced by the full charge, and the paypal account has gained
the cash back amount.

> 
> 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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>         

-- 
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