Advance liability payments

[Tom Collier]

On Sun, 2011-10-09 at 09:02 -0400, Jim & Grace Flowers wrote:

> 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.
> 
>  
> 
> Jim Flowers
> 
> 

You're doing it right from an accounting perspective. There's no reason
to create the bill as a Liability. That would only work if you use
Accounts Payable and enter and process ALL your bills using A/P.

 If your propane supplier automatically takes the payment from your
checking account on a date-specific each month, AND the amount is the
same each month, you might consider setting up a Scheduled Payment so
that you don't have to remember to do the entry each time.

Tom