Gnu Cash v.2.6.5 Difficulties with Cash Flow report not picking up correct expenditure amounts already inputted correctly in the accounts
maf at chilwell.net
Tue May 19 06:10:47 EDT 2015
On Tue 19 May 15 10:09:21 Miles Baker wrote:
> Hi Maf
> Thanks for your swift response.
> I think the problem with the Flow related to the first 6 months of the
> business when there was no money coming in and there was no cash in the
> business. For this period I have expended money from the current account
> against various account names but depending on who paid of each item I
> created a credit for the relevant directors loans to cancel out the
> expenses. At the end of this 6 month period the current account shows a
> zero balance all paid for by the directors loans. The date that the
> director loan cancels out the total expenditure for each director (several
> account names) may differ from the date the expenditure was incurred it
> could affect the exchange rates slightly. Is there any way to reduce this
I don't use multiple currencies in GC, but it seems to me that generally, the
txns in GC should reflect real life as much as possible. Break it down into
Did Director Fred loan money into the current account (which was then used to
buy widgets) or did he pay for the widgets directly? It may be a subtle
difference, but probably important when forex comes in to it.
(case 1: transfer Liab:DirectorLoan:Fred -> Bank:Current, (loan of money)
then Bank:current->Expense:widgets (buy stuff)
then Income:Sales -> Bank:Current (sell product)
then Bank:Current -> Laib:DirectorLoans:Fred (refund loan)
Liab:DL:Fred -> Expense:Widgets
Sales -> Bank
Bank -> Liab:DL:fred)
Did all the other directors who loaned money do the same?
Then consider the currencies & rates.
Did Fred loan $150 or £100 (from his point of view) - i.e. when did the
conversion happen? If I loan £100, I want £100 back. I "don't care" what
happens to that £100 while it is loaned.
But If I convert my £100 to $150 and loan the $150 to someone, I can only
expect the same $150 back & I must accept my personal risk of rate change
meaning I won't get the same £ back again. Of course, I might get more £ back
than I had to start with. Depends how the rate changes!
Not sure if that is going to help of confuse further...
> With the unrealized loss I think this is also a currency issue but it would
> be nice to be able to see the 'black box' calculations behind it.
> With the assets I will expense them as they depreciate in due course.
> Best regards
> On 19 May 2015 at 09:15, Maf. King <maf at chilwell.net> wrote:
> > On Tue 19 May 15 08:58:29 Miles wrote:
> > > Hi Wm
> > >
> > > Thank you very much for your reply I am a first time user and not a
> > > qualified accountant although I have studied it as a subject on my
> > masters
> > > and I am using it for a start up.
> > >
> > > It is strange as when I load the cash flow report the expense numbers
> > > are
> > > incorrect but when you click on the blue link which directs you to the
> > > workings they are all correct but they are not transferred into the
> > report.
> > > The correct expenses are recorded ok in the P&L. I have got three
> > >
> > > currency accounts all directing back to USD at the correct rates and the
> > > calculations are all correct.
> > Hi Miles.
> > I'm not an accountant either.
> > The Cash Flow report measures fundamentally different things to the P&L.
> > IIRC, the cash flow puts a "fence" up around a subset of accounts, and
> > looks
> > at the flow of money "crossing the fence" to other accounts.
> > > I also have a strange thing called unrealised loss creeping into the
> > Balance
> > > Sheet which I can not reconcile.
> > Unrealised [gain|loss] may be to do with your exchange rates etc. I'm not
> > familliar with that bit of GC, but I seem to recall that if you bought
> > some
> > USD at a rate of foo, then report with a rate bar, you'll have unrealised
> > loss
> > of foo-bar. That's probably either simplistic (or possibly totally off
> > target), but it might point you in the right direction.
> > > With my assets some equipment has been purchased through Directors Loans
> > > which have already been paid for so they have been inputted in Assets
> > > and
> > > transferred from Directors Loans but I can not get them to be deducted
> > > as
> > > an expenditure so the expenditure is light in the P&L.
> > Sounds to me like you have incorrect expectations here. Has the business
> > actually expended the money, or have assets and liabilities both increased
> > by
> > the same sum and hence cancel each other in the balance sheet?
> > From a Tax point of view, in the UK at least, a purchase of long-life
> > equipment for use in a business isn't an expense anyway. Your expense
> > comes
> > at year end when you allocate depreciation to your capital assets pool.
> > HTH,
> > Maf.
> > > If you have some tips they would be highly appreciated.
> > >
> > > Best regards
> > >
> > > MB
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