How to accommodate my own house construction costs in gnucash accounts?

[Rafael Sánchez Treviño]

Hello Yaaros,

I'd like to give you my opinion. I would use a temporary account in my
assets/fixed assets section named (probably) "Construction in process". I
would debit all my disbursements there against the payment used (cash,
debit card, check, etc.). After all the construction process is done, I
would credit this "Construction in process" account against a new account
named "House in ThatPlace", again under assets/fixed assets section (and
next to the estate account). This being a "permanent" account.

This will allow you to "build" the story of the value of the house and also
have a "clean" record for your (permanent) house account.

Just my opinion. Of course, I'm not taking into account legal requirements
either (in case you have).

Regards.



On Wed, Mar 30, 2016 at 10:20 AM, Mike or Penny Novack <mpnovack at mtdata.com>
wrote:

> On 3/30/2016 7:29 AM, Yaaros wrote:
>
>> I use gnucash for my personal finance management. Now I'm going to start
>> house construction for my own use, and would like to account all expenses
>> ie. materials, labour, etc. in gnucash. So, please help me to identify
>> which
>> accounts should be created and in which categories also.. Thanks.
>>
> I'm going to take a slightly different tack.
>
> Because DURING house construction (and for a record of the project) you
> are going to want a great deal of "clutter all these details, but that
> would represent a great deal of clutter on your personal books I would
> choose to open a SEPARATE set of books for the construction phase. Then at
> the end of that phase (house complete) would close that set of books into
> your personal books. Then you would always be able to reference the house
> construction project without having all those details cluttering your main
> books.
>
> So some questions. How are these things (materials, labor, etc.) being
> paid for? Your usual checking account or a special account for the project
> (perhaps checks drawn against the "line of credit" account the bank would
> want you to have prior to converting that liability to a permanent mortgage
> when the house is completed -- that would be usual at least this side of
> the pond)
>
> Michael D Novack
>
>
>
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-- 

Rafael Sánchez Treviño
C. 818-010-6040