How to set up hierarchy for accounts? What is better?

[John Layman]

I used 'superior' in the sense of superordinate, not "better."  I agree with your point about utility reporting-wise, but that is precisely why the investment account "owns" the IRA (a type of investment) rather than the other way around.  An investment account can be reconciled  in much the same way as a bank account.  But that would be virtually impossible if you structured your chart of accounts such that investment accounts were scattered under various investment types.

-----Original Message-----
From: gnucash-user-bounces+john.layman=laymanandlayman.com at gnucash.org [mailto:gnucash-user-bounces+john.layman=laymanandlayman.com at gnucash.org] On Behalf Of Anthony Lupa
Sent: Friday, March 18, 2011 5:59 PM
To: gnucash-user at gnucash.org
Subject: RE: How to set up hierarchy for accounts? What is better?



I think it's hard to claim any particular hierarchy is "superior" to any other.

Unless you are otherwise obligated (such as, by regulation), the hierarchy should be derived from your reporting requirements.  That is, what you find useful for the system to report should drive the account structure.

T

On Fri, 18 Mar 2011 17:41:03 -0400, "John Layman"
<john.layman at laymanandlayman.com> wrote:
>>From a data modeling perspective, the institution is a superior 
>>concept
to
> the investment instrument type.  It is perfectly possible (and, 
> indeed, I have such a case) where an account with Institution-X 
> includes both a garden variety IRA (which just matured) and mutual 
> fund holdings, with an associated cash account.  It would really be 
> turning things upside down
to
> elevate the instrument above the institution.  To be perfectly clear, 
> however, the highest concept here is not institution, per se, but the 
> investment account -- the entity for which they send you a statement.
> That's why the suggested chart of accounts separates RETIREMENT from
SPOUSE
> RETIREMENT at the top level.  Both may have accounts at the same 
> institution, but they are different accounts.  It isn't clear to me 
> how
any
> practical or accounting value would derive from lumping all Plain Old
IRAs
> into the same bag.
> 
> -----Original Message-----
> From: gnucash-user-bounces+john.layman=laymanandlayman.com at gnucash.org
> [mailto:gnucash-user-bounces+john.layman=laymanandlayman.com at gnucash.o
> rg]
> On
> Behalf Of FireFly
> Sent: Friday, March 18, 2011 4:04 PM
> To: gnucash-user at gnucash.org; alfggmb
> Subject: Re: How to set up hierarchy for accounts? What is better?
> 
> Why do you need to put the "Bank Name" at the start of the tree? Is it
that
> important what accounts are in what banks (or rather totaling)?
> 
> Personally if you care about IRA's in a particular bank I'd keep 
> original setup with a minor change
> 
> Investments:Retirement:IRA:[Bank Name]:Account X
> 
> - James Duerr
> 
> E-mail: FireFlys_98 at yahoo.com
> ---------------------
> Discover a lost art - play Marbles. May 2004 www.marillion.com
> 
> 
> --- On Thu, 3/17/11, alfggmb <alfggmb at verizon.net> wrote:
> 
>> From: alfggmb <alfggmb at verizon.net>
>> Subject: How to set up hierarchy for accounts? What is better?
>> To: gnucash-user at gnucash.org
>> Date: Thursday, March 17, 2011, 8:00 PM Is it better to set up 
>> parent-child accounts for IRA investments as for e.g.
>> [Bank Name]:Investments:IRA:Account1,2 etc or leave it as in the 
>> original setup.. Investments:Retirement:IRA..
>> 
>> The problem is all the IRAs from everywhere(all banks and
>> others) would
>> appear under the same parent, namely Retirement.  It will not give a 
>> total for [Bank Name]:
>> 
>> Basically my question is, is there an easy way to find the totals for 
>> both (all accounts in [Bank Name] which includes the IRA in
>> Investments:etc) and
>> (all IRAs) ? 
>> 
>> 
>> 
>> Thanks,
>> Al
>> 
>> 
>> --
>> View this message in context: 
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>> u nts-What-is-better-tp3386171p3386171.html
>> Sent from the GnuCash - User mailing list archive at Nabble.com.
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