Recording expense opening balance

[Doug Laidlaw]

Yes, you could.  GnuCash won't complain about the past date.  But you still 
have the problem of the balancing entry.  You can't write a check on a past 
date without increasing your opening bank balance by the amount, so it is 
still correct on your starting date.  That is the curse of the double-entry 
system. 

Doug.

On Sun, 4 Oct 2009 12:20:56 pm Daniel Trezub wrote:
> Can't you just record a past transaction for a random date in the past,
> let's say Jan, 1st?
> If the date is not that important, but the value and account are, I'd do
> that.
>
> =====
> Daniel
> http://dantrez.deviantart.com
> http://www.bandofgamers.com.br
> http://www.continue.com.br
>
>
> 2009/10/3 Doug Laidlaw <laidlaws at hotkey.net.au>
>
> > On Sat, 3 Oct 2009 04:29:41 pm maljam5 wrote:
> > > How do I record an expense opening balance. For instance, if I set up
> > > an expense account for 'phone bill' and I know that I have already
> > > spent
> >
> > $500
> >
> > > year to date, what transfer account would I use to record this amount
> > > so that at the end of the year I can print a report on the total spent
> > > for
> >
> > the
> >
> > > year?
> >
> > By definition, you can't open your books with an expense already
> > incurred. As
> > I see it, you have two options:
> >
> > (a) Open your books as at the beginning of the fiscal year and in "phone
> > bill"
> > record an expense item "Expenses to date".  I am not sure what you do
> > with the
> > other half of the entry - it can't go to Cash, of course.  It could go to
> > "opening balances".  The advantage of that is that you have a complete
> > fiscal
> > year for tax purposes.  Alternatively, you can record the complete
> > history, if
> > there are only a few transactions.
> >
> > (b)  When my accountant set up my books, there was a balancing item
> > "Preliminary expenses."  You could open your books as of today, and for
> > the $500, debit Phone Bill and credit "Preliminary expenses."  That item
> > would be
> > written off at the end of the year.  I imagine that it would go in this
> > year's
> > Balance Sheet, but it is really part of your profit and loss. 
> > "Preliminary expenses" would be transferred as one item; if you have
> > expenses that belong
> > to Gross Profit and others to Net Profit, you would need one account for
> > each.
> >
> > If you have an accountant doing your tax, that would be the best person
> > to ask.
> >
> > HTH,
> >
> > Doug,
> > Not an accountant.