Invoicing and expenses query

[Alice Lee]

I am an accountant but I have not used invoicing in Gnucash.  Putting the purchases into a receivable account, a balance sheet asset account, will ensure that you bill the customer for the items.  You need a completed entry so your cash or bank account will be accurate.  Does a customer invoice in Gnucash put the amount of the invoice into A/R in the general ledger automatically?  If it does, you would be creating more than one invoice so you would want to just keep track of it in the general ledger (accounts receivable) and bill when the job is done.  If it does not, you could keep a running list on an invoice and not complete it until the job is completed.  You are going to have to list the items twice, in either case, to keep the cash/bank account accurate and to only bill the customer once. 

-----Original Message-----
From: bv3000 at gmail.com [mailto:bv3000 at gmail.com] On Behalf Of Antonio Roberts
Sent: Tuesday, February 24, 2015 8:39 AM
To: Alice Lee
Cc: gnucash-user at gnucash.org
Subject: Re: Invoicing and expenses query

Thanks Alice, I'm beginning to understand.

I do usually get an advance if I have to buy a lot of materials, but usually I spend around £30 only.

If I only add the extra items that I buy to the invoice and not the expense does it not then look like I have made more profit when in fact it's just a reimbursement?

Thanks

Antonio

On 23 February 2015 at 17:24, Alice Lee <alee212007 at satx.rr.com> wrote:
> You do not expense these items that are going to be reimbursed.  
> Credit cash and debit an account receivable.  If, for some reason, 
> they do not pay.  You would then expense it as a bad debt.  You should 
> normally have some advance payment if your investment in materials is significant.
>
> -----Original Message-----
> From: gnucash-user
> [mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On 
> Behalf Of Antonio Roberts
> Sent: Monday, February 23, 2015 6:27 AM
> To: gnucash-user at gnucash.org
> Subject: Re: Invoicing and expenses query
>
>> What about your profit on those?
>> The majority would not charge out at the purchase price.
> I'm not making any profit on these.
>
> To give some context, I'm making an interactive installation for a gallery.
> I'm receiving a fee for my time on the project and then have to charge 
> them the cost of the materials that I purchased. So far this has been 
> a Raspberry Pi, SD card and a HDMI cable.
>
> I don't need to worry about things like VAT etc, just the actual cost 
> that I paid for the materials.
>
> So, in this case, would I record the expenses as I buy them and then 
> add them again to an invoice, or only input them on the invoice?
>
> And, hypothetically speaking, if I was to do the latter what would I 
> do if they didn't pay? I would still have bought equipment.
>
> I don't know if there's a "proper" way to do this so asking for advice 
> based on experience.
>
> Antonio
>
> On 22 February 2015 at 20:59, Liz <edodd at billiau.net> wrote:
>> On Sun, 22 Feb 2015 17:50:13 +0000
>> Antonio Roberts <antonio at hellocatfood.com> wrote:
>>
>>> Hi list,
>>>
>>> I'm fairly new to using GNUcash and have a question about invoices 
>>> and expenses.
>>>
>>> I've bought some computer components for a project for a customer.
>>> I've added each of those to my expenses. When the project is over 
>>> I'll be invoicing the customer. Is there a way to simply add the 
>>> expenses to that invoice or do I have to re-add each of those to the
> invoice?
>>>
>>> Thanks
>>>
>>> Antonio
>>
>> What about your profit on those?
>> The majority would not charge out at the purchase price.
>>
>> I don't know of an automated way to do this, but would be using an 
>> unposted invoice to keep a record.
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>
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antonio at hellocatfood.com
http://www.hellocatfood.com
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