how to represent utilities that can have a negative balance?

[David Both]

Actually you should create an asset account as "Prepaid expenses" and then 
perhaps one or more sub-accounts for various things such as insurance and 
prepaid phone account. Then transfer funds from the bank into the prepaid 
account which should then be positive balance. Add the phone expenses to it as 
they occur, balancing to the proper expense account. If the "prepaid expenses" 
account goes negative before you transfer more funds to it that is fine.

I hope this helps.


On 09/11/2013 03:48 AM, Drew Heath wrote:
> Hi everyone,
>
> I'm having trouble searching the archives so please forgive me for an easy
> question:
>
> My mobile phone provider uses a pay-as-you-go model and will tolerate a
> negative balance for up to 8 weeks.
>
> My typical usage pattern for this account is to go several hundred below
> zero (thereby owing them money) during a month's usage, then recharge the
> account with a bank transfer several hundred above zero (stockpiling a bit
> of credit against future usage).
>
> I'm not sure how to handle such an account in GnuCash.
>
> I started GnuCash on September 1st and used Equity for all my opening
> balances, but this account began with a negative 200 balance.
>
> Should I also create an opening liability account for this expense?
>
> How do I handle monthly usage bills and recharge payments?
>
> Thank you for any help you can provide,
>
> - Drew
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-- 

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David P. Both