Advance liability payments

[FireFly]

>I'm using version 2.4.7 on Windows 7 Home Premium 32 bit.  I'm still

>learning how to use the program, but all in all, I like it.  However, I do
>have a question.  I'm on a budget plan for one of my utility suppliers.
>It's not municipal, it's a private business.  Should I set this up as a
>liability, as I pay each month, then when I have to "pay"  for the propane,
>just debit the expense account and credit the liability?  Right now, as I
>pay each month, I debit the expense account and credit the bank account.  I
>got to thinking about this, but don't know the answer.

To my mind (assuming you have credits and debits the right way round) what you are doing sounds right, liabilities to me are more permenant than a Utility company, and you can cancel (and presumably at some point there is a reconciliation effort to say okay we'd budgeted you at X for the year, but you used Y, so we owe you/you owe us).


- James Duerr

E-mail: FireFlys_98 at yahoo.com
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Discover a lost art - play Marbles. May 2004
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