Query re recording a computer purchase as a fixed asset

[MP99]

Ah, thank you for a very clear explanation - that was indeed it. 

When I created the New Bill (A/P), I entered the individual lines of the
invoice and used the Tax Tables to divide out the tax element. This gave a
breakdown in Liabilities:Accounts Payable exactly as you described. 

The step I was missing? I had assigned the line in the bill to
Expenses:Computers, when it should have gone to Assets:Fixed
Assets:Computer. 

The tax element of this went to VAT:Input:Vat Standard Rate, but I'm OK with
this as we will eventually become "VAT registered", and then we'll be able
to offset this against VAT that we charge. So, I'm fine with it showing on
the books as a negative liability for now.



Buddha Buck wrote
> Your confusion I think is in step 2 (Record the invoice as a bill in
> Accounts Payable). Functionally, posting a bill acts like a normal
> transaction, so it has two accounts, A/P and something else. That
> "something else" is the Asset Cost account the tutorial is talking about.
> 
> So in the scenario you are presenting, the order of events should be:
> 
> 1) Agree to purchase the computer.
> 2) Receive the bill (and the computer)
> 3) Enter the bill into GnuCash
> 4) Pay the bill
> 
> When you enter the bill, each line-item in the bill may be charged to a
> different account. Let's say there are shipping fees and sales tax on the
> bill in addition to the computer (and let's say the computer cost $5000).
> You would input the invoice with three line-items, and when you post it,
> it
> would create a split transaction looking something like:
> 
> 2015-02-06 Purchase new server for back office
>   Debit Asset:Fixed:Computer Server $5000
>   Debit Expense:Shipping $25
>   Debit Expense:Tax:Sales Tax $400
>   Credit Liabilities:Accounts Payable $5425
> 
> When you pay the bill, you will debit Liabilities:Accounts Payable, and
> credit Assets:Bank.





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