doing budgeting/escrow within checking account

[Mike or Penny Novack]

>your really close, IMO. Instead make
>
>Current Assets
>	Checking Account
>		 Reserve1
>		 Reserve2
>		 ...
>
>then you don't have to do the between account transfers. And you can
>reconcile one account, selecting "include sub-accounts" in the
>reconcile window. And at all times you know what you "non-reserve"
>money is because that is what will show in the "Checking Account"
>register. 
>
>  
>
Just so that you understand.

I intend to use for our purposes, and I described it that way (requiring 
explicit transfers) because the apparently simpler method here would not 
ALWAYS work. In my case, the expense item (qualifying) might NOT be a 
transaction immediately payable by a check -- but on the business credit 
card of the purchasing agent so a liability until paid. But when paying 
the balance on the card, that's one check for all the items (no matter 
which expense account they were in) and in fact, there could even be 
charges from other cardholders on that business account.

HERE (in what the person wants) you have assumed that you would ALWAYS 
have a one-one correspondence between checks written and reserve 
accounts. Why did you assume that? Could be a credit card situation like 
described above (SOME of the items on that month's statement come out of 
various reserves but not the entire balance payment). Could also be a 
simpler situation. You have reserve accounts for "clothing" and 
"household furnishings". You go to a department store and buy a new 
winter coat and two flannel sheet sets. Let's say that's $70 and $60. At 
the checkout, do you try to write two checks for the $130 total or isn't 
it more usual that you give the cashier one check.

Hope that explains why I described explicit transfers. Those do NOT 
represent "real money" transactions into and out of the books but 
accounting between abstract divisions.

Michael