Tracking actual hours on subscription-based service agreements

[John Ralls]

On May 30, 2014, at 11:37 AM, Thomas Smith wrote:

> Hi,
> 
> I'd like to track hours on services that I offer as a subscription.
> Subscriptions are typically paid annually and the work done throughout the
> year under the subscription agreement is not billable--the purpose of the
> tracking is to help in determining net return (to see if the subscription
> cost minus hours actually worked under the subscription agreement yields a
> positive return). I also want to be able to generate a report for customers
> to show them what they're actually receiving as part of their subscription
> agreement.
> 
> I'm still learning GnuCash and am pretty inexperienced with accounting as
> well.
> 
> My first thought was to enter an invoice with the work performed, the
> appropriate account, and the hours and full rate, then apply a 100%
> discount. This didn't work as GnuCash doesn't appear to allow the posting
> of a $0 invoice.
> 
> Is there another way that I might achieve in GnuCash what I mentioned above?
> 

I guess I'd set up the subscription as a Liability account and then charge against with invoices at your hourly rate. At the end of the subscription period you could sweep any excess or deficit to an equity account.

Regards,
John Ralls