New user - previous business accounting experience - need tips!

[Wiliam Colls]

On 04/13/2012 02:43 PM, SybreedFan wrote:
> Hello,
>
> I stumbled across GnuCash and would really like to get it up and running for
> use in my small business. I do have previous business accounting experience
> with a major accounting program (ADP) and I'm having some trouble adjusting.
>
> Here's my current situation:
>
> I am a graphic designer and often times need to sublet work to a printing
> agency if a customer wants brochures, business cards, etc.
>
> I have developed a brochure design for a customer and sent it off to my
> printing partner to be produced. I pay the printer and then include the
> printing and shipping charges on the customer's invoice. I have set up the
> vendor and customer info.
>
> First I have posted the vendor's bill with a split - I want the printing and
> shipping charges to go to separate expense accounts. When I receive the
> customer's payment, I would like to be able to CREDIT these accounts the
> same dollar amount, however it will only let me transfer to one of the
> income accounts. The only actual income off of this invoice would be my
> design time, which I want to go to sales income - but once again, I want to
> be able to credit my printing and shipping charges back to those expense
> accounts.
>
> This is just what I was accustomed to in ADP - I am by no means an
> accounting guru. Does anyone have any tips for me? Maybe there's a better
> way to do this? I greatly appreciate any help!
>
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May I suggest that rather than posting the cost of the printing as an 
expense, you should post it to Cost Of Good Sold - Printing, and Cost Of 
Goods Sold - Shipping. When the client pays your invoice, the whole 
amount goes into the Revenu account, and then you net income is 
calculated as Revenu - Cost of Goods Sold. This has the added advantage 
of not cluttering up you own expense accounts with items that are not 
really expenses to you, and clearly isolates the costs associated with 
the subcontracted work.

My $0.05 Cdn. ( we don't have pennies any more).


-- 
I know that you believe that you understand what you think I said, but I 
am not sure that you realise that what you heard was not what I meant.