Split transaction and VAT

[John Whitmore]

On Thu, Oct 22, 2015 at 08:23:14AM +0100, Maf. King wrote:
> On Wed 21 October 15 23:09:46 John Whitmore wrote:
> > I'll start by saying that I'm easily confused by how finnance is delt with
> > so don't take it badly that I'm struggling with the GnuCash Tutorial
> > document.
> > 
> > I've been practicing with GnuCash on my personal finances all year as a
> > prelude to running my own small company. Now I'm at the point where I'm
> > trying to add my first transaction to my company acconts. Now I have to use
> > splits!
> > 
> > Say I've been paid 1,230 of which 230 is VAT (Value Added Tax) which at some
> > point has to be paid to the government. All this is coming from Company_A.
> > 
> 
> Hi John,
> 
> > I have an Income account for Company_A So I go to that account and start a
> > new transaction by filling in a summary and clicking the "split
> > transaction" as suggested in the tutorial. So now I add one split of 1,000
> > into
> > Assets:CurrentAccount and 230 into Liabilities:VAT hit return and everything
> > disappears no transaction is recorded in the Income:Company_A Account.
> 
> Just before you hit enter to record the transaction, does the split show 2 or 
> 3 lines?  You should have a line for Income, A line for Bank, and a line for 
> Output VAT (that's what it is called in the UK)
> 
> If you are in the income account, the splits should be 
> Bank:    1230         ---
> Income        ---           1000
> OutputVAT	   ---                230   
> 
> 
> As an aside, is CompanyA representing your company or a customer of your 
> company?
> 

Thanks a million Maf,

I think I got it I was treating a split transaction as 2 "normal"
transactions, so I had one split row for the 1000 and one split row for the
vat. I actually needed a third row to tell GnuCash that the total was 1230 and
was coming out of Company_A account. 

In what I'm callin a "Normal" transaction you'd never mention the Company_A in
a transaction. So I'd just add a transaction of 1230 into my current
account. As the transaction was added into the Account the other part of the
transaction is assumed to be this account.

I guess it's all this double book stuff. At every point in the system the
equation balances. 

I do work for Company_A so I think they're a customer.


> HTH,
> Maf.
> 
> 
> 
> > 
> > I keep playing around in this area but never manage to get a transaction to
> > stick. Then I go and look at the Current account and numerous transactions
> > have been added. I've deleted them all and will keep playing.
> > 
> > Mucho confused all the money 1230 is coming from Company_A so why can't it
> > go into that Income Account?
> > 
> > And just out of interest what totals would you expect in all three accounts?
> > 
> > Income:Company_A        Asset:CurrentAccount      Liability:VAT
> > -1230                          +1000                   -230
> > 
> > 
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> -- 
> Maf. King
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