Invoices/Receipts and PayPal fees

[Jill Terry]

Thanks folks, I'm romping ahead now!

ha ha ha Wm - it wasn't so much the rude words as the tone :) Not that 
I'd encourage anybody to swear ;)

Cheers
Jill

On 31/01/2015 17:01, Wm wrote:
> Sat, 31 Jan 2015 13:36:09 <54CCDA49.3010607 at babrees.co.uk>  Jill Terry 
> <jill at babrees.co.uk>
>
>> Thanks, also to Wm for his response.
>>
>> So, I'm doing this as suggested, entering direct into the bank/paypal 
>> account, and this seems to have solved the problem.
>
> You should be recording the transaction either as income or a change 
> in your asset account.  Looking at the flow of money from the paypal 
> (an expense) pov is arse about face.
>
> aside: I think you got upset with me using rude words, does the above 
> seem appropriate in context to you?
>
>> However, when I have a lot of cheques to pay into the bank, what is 
>> the best way to do that.
>
> Depends if cheques written generally clear or not.
>
> If they don't bounce as a rule your transaction is
>
> Assets:bank                                1000
>   Income:MembershipFees         10
>   Income:Donations              99
>   etc
>
> For management reporting purposes you will, of course keep a record of 
> the rare bounced check and members that promised to pay but haven't 
> (the legal bit in England and Wales is different to Scotland and the 
> various states in the USA differ amongst each other so their can't be 
> a single rule) about this.
>
> You and your trustees / auditor have to decide on your basis of 
> accounting and are even allowed to mix it (though that is not 
> encouraged).
>
> Don't be fooled by what some American people say.  In the UK small (in 
> terms of turnover) charitable organisations are allowed to report on a 
> cash basis.
>
>> Is it best to enter them into Assets > Accounts Receivable and then 
>> once ready to pay in to the bank do a transaction from AR to bank?
>
> I wouldn't do it that way.
>
> If I am right about your practice I'd record each cheque received in 
> some way but avoid gnc's formal Accounts Receivable, an ordinary
> Asset:ChequesReceived as Tommy suggests is probably better.
>
> You want to record cheques you haven't deposited or haven't yet 
> cleared rather than debts owed, etc.
>


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