Split transactions

[Mike or Penny Novack]

PeterS wrote:

>Again, I've been spoiled by MS Money and I'm used to breaking down my credit
>card payments by transaction(s) into the corresponding expense category.  MS
>Money would show a running total while I input the amounts.  The individual
>expenses would then be reflected in the expense reports.
>  
>
Same sort of answer. GnuCash allows you to split transactions.

But perhaps a bit of confusion? Perhaps MS Money was allowing you to do 
that when you PAID your credit card bill but that's all wrong (not 
"accounting"). The individual uses of the credit card over the month are 
NOT one transaction. Each should be entered as of their own date 
increasing the credit card liability (some of them could be transactions 
split into more than one expense category -- like if you bought a mop at 
the super market along with the food). Later, when you pay that bill 
it's a transaction affecting your current account (checking) and the 
credit card liability but not any expense accounts.

Understand what I am saying? This isn't about GnuCash but how you are 
supposed to do it with any accounting system, even old fashioned pen and 
ink on paper.

Michael

PS -- Do you understand why done this way? It's an expense NOW even if 
you never pay off your credit card balance. Doesn't wait to become an 
expense until you pay the bill and this isn't a "cash" vs "accrual" issue.

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.