Invoice and type of account

[Alice Lee]

The indefinite contract itself will not show in your accounting records
unless you have a promissory note or cash to record when the contract is
made.  When you receive advances, they are recorded as a Liability titled
Unearned Revenue ???Contract and of course the debit is to a cash account.  

If the contract was a definite amount and the payments were made to you
according to the progress of the job, you could record the contract amount
as a receivable and the full amount as unearned revenue.  Then the progress
payments would require a credit to the receivable for the amount paid, a
debit to unearned revenue as well as a debit to cash and a credit to an
income account.  In other words, the income account is not credited until
the income is earned

-----Original Message-----
From: gnucash-user
[mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On Behalf
Of Martin Mizur
Sent: Sunday, February 15, 2015 12:26 PM
To: gnucash-user at gnucash.org
Subject: Re: Invoice and type of account

Hi
I'll try to give you an example:
1. Start with the contract, but I do not know how long the work will take,
or not sure that will be paid after all 2. I get an advance
- Write it on account payables
3. Work in progress
4. Take another advance
- Write it on account payables
5. Invoice you, I want to record the total amount of the contract, but also
both received advances.
- The income will account for the total amount of the contract
- On account payables want to derecognise both backup

-- if the account type Liabilities I can
-- if it type Payables I can't

Dne So 14. února 2015 01:15:57, Wm napsal(a):
> >I have a problem with writing an account to invoice items.
> 
> I don't know exactly what you mean.
> 
> > When you post the
> >
> >received advance should I book an item recognized in liabilities.
> 
> If you receive money in advance of work or services you are going to 
> do then it should normally be recorded as income.  Whether the other 
> leg is a liability or an asset depends on your arrangement with the 
> other party.
> 
> > In GnuCash
> >
> >is the type marked Payable. But this type of writing to the invoice 
> >is not offered.
> 
> ...
> 
> >Can I use it when it is identified as a liability account.
> 
> I think you're asking about allocating payments to invoices.
> 
> >Why not use Payable account?
> 
> Because that is (if I understand the question) the money you owe 
> people and you can't go around cancelling it against money owed to you 
> at random.

--
Martin Mizur

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