Possible problem with splits

[Andrew Sackville-West]

On Fri, Jan 25, 2008 at 07:25:45PM -0500, Mike or Penny Novack wrote:
> Could we please forget that I ever used the word "memo" (for most of my 
> life any bookkeeping I did was the old fashioned pen and ink on paper way)

It *is* important to clarify language, especially in this medium where
we can't see the speaker... :)


Here's how I would do a deposit as you describe. When a payment is
recieved, whether from an invoice payment or from some other txn, I
would record as a deposit to an asset account called "Undeposited
Funds" or "Funds in Transit". When I make a bank deposit, then it
would be recorded as one lump transfer. My line items would be split
out in that interim account. I don't care about the various splits by
the time it goes into the bank. What this does is allows the detail of
each transaction to reside in another account in separate txns. The
lump sum deposit to the bank is just that, a lump sum deposit. THe
individual sources of income are handled in the other account and kept
separate that way.

But, I don't actually have much call for this kind of detail in my
accounts. What I do is record one single monthly sales transaction (I
have POS at my establishment that tracks details of specific retail
txns) for all the sales of the month. THat money (a massive split txn
showing all the sources of income as aggregate amounts as well as
sales tax receipts, discounts and comps, returns etc) gets deposited
into Undeposited Funds. Then when I reconcile the bank account, I
create three split txns. One for last month's money deposited this
month. One for this month's money deposited this month. One for this
month's money deposited next month. That turns my roughly 8,000
monthly sales txns into just a handful of summary txns in my books.

There are many ways to skin a cat. I prefer a blender ;)

A

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