Split Transaction Question

[Michael Hendry]

On 23 Dec 2013, at 15:56, John Donnee <jdonnee at ec.rr.com> wrote:

> Employee Expense Reports.
> 
> The example in the Users Guide only shows splitting a salary check. I am confused about how to properly enter the split process for an Expense report especially when the expense report has more than one expense category such as Internet Expense and Medical premium.
> 
> Here is how I was doing it but getting double amounts in the Expense categories.

This is not really primarily a GnuCash question, rather one about book-keeping.

I’m neither an accountant, nor anything but an amateur book-keeper, but I’ll try to explain what I’ve picked up over several years…

> 
> 1. I create a New Expense Voucher
> 	Do I create the new expense voucher and enter just the Total of the expenses and assign it too “Expenses” even though it has multiple line items with different expense categories?????
> 
> 	I did an expense voucher and Split each of the line items and then when I did the splits in the Check register there were double expenses in each Expense Category-
> 	
> 
> 2. I then go to my Check Register and Select Splits
> 	a. My first line item is the description and I hit Splits
> 	b. My second line item is Account-Checking-decrease the total expense report amount
> 	c. I then enter each expense on each subsequent line 
> 	d The result seems to show up correct in my Checking register	


Ignore 1., and go straight to 2.

Only you will know how broad or narrow you want the scope of your expense accounts to be, and you must make some arbitrary decisions when setting up your accounts. Fortunately, with GnuCash you can always create fresh accounts after the initial setting up.

For example, you might lump all domestic expenditure together at first, and then realise that you really want to keep a separate track of your Utility bills. Once you’ve created your Expenses:Utility account, you can choose to enter only future expenditure on utilities through this account, or (if you want) go through previous transactions and edit as necessary.

Your mistake was in thinking that Double Entry meant you had to key every transaction in twice - GnuCash takes care of the distribution for you, and it makes sense to record payments by cheque (check) through your Current (Checking) account in GnuCash, and split the costs between the various expense accounts.

Similarly, when you pay a number of cheques (checks) into the bank, you should enter the income through the Current (Checking) account in GnuCash, and distribute the income between various income accounts.




> 
> 3. I am not sure how to handle the Expense vouchers with multiple line items on it. I think that I am doing the Check splits correctly.


Just do the Check Splits - all the information necessary is being recorded through a single (albeit split) transaction.

Best of luck!

Michael

> 
> 
> Suggestions-Examples???
> 
> Thanks
> 
> John Donnee
> 
> 910.622.8111
> 8422 Emerald Dunes Rd.
> Wilmington, NC 28411
> 
> 
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