Split transaction and figure 4.1 in the guide

[Tommy Trussell]

On Sun, Jul 19, 2015 at 3:20 PM, Denis <denis4433 at yahoo.fr> wrote:

> With the help of figure 4.1, is there somewhere in the accounts or
> reports  where the "Before tax" will or could show on a day to day
> base and also, for example, show the total annual amount
> "Before tax" ?
>
> I have an account entitled "Before tax" in the Revenues but the total
> obviously stays to zero since Gnucash uses the "After tax" account.
>
> Any comments on this "Before tax" in figure 4.1 and this amount of
> $670 ?  That would also help clear my mind a bit more on the way
> Gnucash works ?
>

Just to be absolutely clear, I am looking at Figure 4.1 on this page:
http://www.gnucash.org/docs/v2.6/C/gnucash-guide/txns-registers1.html

[image: Account Register - Split Transaction]

In this case, the "Before Tax" annotation indicates the $1000 going into
Income:Salary, and the other lines show the amounts "split" from that
amount. The other amounts go into various taxes and into your bank account.
In the example, $60, $90, and $180 dollars go into tax accounts, and the
$670 is the amount that goes into your checking account. In other words,
the company pays your salary of $1000, but the $670 is what you receive
"after taxes" are deducted. (All of the amounts MUST "balance," and if they
do not GnuCash will create a line to balance the splits.) In this case, $60
+ $90 + $180 + $670 = $1000 so everything balances.

You asked where you could see these things. When you look in the registers
for Income:Salary or Expenses:Taxes:Federal you can see the total amounts
accumulated for each of these accounts since you began using GnuCash OR
since you optionally "closed the books" on those accounts. When you
generate an income statement, you will see the Income:Salary account
accumulating for however many payments you have received for the period of
the report. If this transaction represents a weekly paycheck, then the
total for Income:Salary for a whole year would be $52,000. ($1000 times 52
weeks.) The total in your checking account would be $670 times 52 weeks
($34,840) minus the amounts of all the checks and other deductions from
your account during those 52 weeks, plus any additional deposits and
transfers in.

I hope that explanation makes it clearer. If you have further questions
PLEASE copy them to the list.


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