Understanding the 'transfer' list of options...

[Maf. King]

On Mon 27 August 12 05:59:04 Expert_wannabe wrote:
> Firstly, I'm from the UK and using this for my fairly new small business
> (VAT registered)
> 
> I'm new to GnuCash and I'm far from being an accountant....
> I've been using it for a couple of weeks now but I want to start using it
> more!
> I've set up my current account on it and it basically reflects my bank
> account at the moment.
> The issue I currently have is that I never know what to put in the
> 'transfer' column.
> I know that this will reflect reports and such like, therefore I'd like to
> get it right.
> 
> Here's some examples:
> 

Hi,

The transfer column is used to group types of expense together, eg. buying 
electricity, insurance, and it might be useful to know that you spent x on 
widgets and y on gizmos over the course of a business year.  within reason, 
you can split this as you want.  You can also customise the accounts tree as 
you need, by adding, removing or renaming accounts.

As a VAT registered business, you will understand that you have to keep 
records of the VAT you spend and that which you charge your customers.  Also, 
you will know that some of your transactions may be outside the scope of VAT.


> I but £10 worth of credit for my giffgaff mobile phone. /is that:
> Expenses:Utilities:Cell Phone?/

Yes, nearly. if you are VAT registered, that should be a split between 
Exp:Utilities:Cell Phone and (something like) Liabilities:VATbox4 (80% and 20% 
respectively) 

> 
> I buy a hard disk from Amazon, and when I ask the seller for a VAT receipt,
> they say the can't provide one, so /is that: Expenses:Depreciation?/

No.  possibly expenses:computer hardware.  although, if it is going to be 
something with an expected lifetime, it might go to Assets:OfficeEquipment.  
If the vendor is vat registered but can't provide a reciept, then he is in 
breach of the VAT rules.  If he isn't VAT registered, then there is no VAT 
paid for you to account for.

Exps:Depreciation is for spreading the (corporation) tax benefit of large 
purchases that have an expected lifetime of several years in the 
business(computers, machines, cars etc)  You depreciate the value of those 
items at (probably) 25% each year, to reflect the notional loss in the asset's 
value over time.


> 
> I buy a domain name from an internet provider, with a VAT receipt./ is that:
> Expenses:Miscellaneous?/

If you want.  I put them in Expenses:Vatable:Utilities:Internet (with the 20% 
vat split to Liab:VatBox4)

> 
> I would like to be able to pull information on how much VAT I'm supposed to
> pay!
> I've trawled the net to try and find answers but sadly, I'm unable to find
> anything.

Have a look here: http://gnucash.wikia.com/wiki/GnuCash_Accounting_tips_Wiki


> I even done my best to find out how to modify the 'list' in GC but couldn't
> find out how to!
> 
Have you read the concepts guide on www.gnucash.org?  Chapter 3 seems 
relevant: http://gnucash.org/docs/v2.4/C/gnucash-guide/chapter_accts.html 

> Any assistance would be greatly appreciated.
> My VAT is due to be paid in a couple of days
> 

If you are unsure about how to account for VAT, you might need to have a chat 
with an accountant, at least to get you going. I'm more than willing to try to 
answer questions (off-list if you prefer), but IANAA, just someone with about 
20 years practice at filling in VAT returns!

Cheers,
Maf.