Reconcilliation

[Buddha Buck]

You're welcome. I'm glad I could be of help. By the way, in general it's
considered polite on the GnuCash lists (and some others) to keep CC:ing the
list so that everyone can see the conversation.

On Sat, Oct 1, 2016 at 7:39 PM Diamond Plumbing <
diamondplumbingottawa at gmail.com> wrote:

Ahhhhh - thank you for the clarification!  Now I understand why its looking
different to how I expected.  I'm going to re-look again with fresh eyes
tomorrow and thank you for your kind guidance.
Regards
Colette


On Sat, Oct 1, 2016 at 6:55 PM, Buddha Buck <blaisepascal at gmail.com> wrote:

A reconciliation is an attempt to verify that you and someone else have the
same view of an account. When you reconcile against the bank statement, you
are verifying that both you and the bank agree on what has affected that
account.

When you enter a transaction (such as a $500 loan to the business for the
purposes of keeping the bank account above zero), in your books that
transaction affects two accounts: the business checking account, and the
liability account tracking that loan. In GnuCash terms, the single
"transaction" has two "splits", with one split linked to the bank account,
the other linked to the liability account.

When it comes to reconciliation, the bank knows nothing about the split to
the liability account. It doesn't know, or care, where the funds in the
checking account came from, just  that the transaction was $500. As such,
it is impossible for you to reconcile that liability account split against
the banks records. But you can reconcile the checking account split against
the banks records. If the lender of the $500 cushion issued a statement,
giving what your business owed, you could reconcile the liability account
against that statement separately from the bank's reconciliation.

In GnuCash, transactions aren't reconciled, splits are.

It sounds like you are using GnuCash properly, but might not be expecting
what you are seeing.


On Sat, Oct 1, 2016 at 6:12 PM mrfox99 via gnucash-user <
gnucash-user at gnucash.org> wrote:

Hi
I am new to GNUcash and I have a start up business.  Having watched some
very helpful starting youtube videos on chart of account set up and initial
transaction creation, I've found it very easy to use and straight forward.
My issue is when I come to reconcile - here is my scenario, hopefully
someone can tell me where I am going wrong. My set up is for Canada.

We opened our business account and in the first month our account fee was
deducted so our account went into a negative.  So, at the end of the first
month, the bank was -$6.00.  I inputted this transaction as a bank fee of
$6.00.  We transferred in $500 as a buffer to set up the business - a
personal loan if you like to credit the account, so I entered this as a
Liability under Loans as essentially the business needs to pay that money
back.

My issue is that when I go to reconcile the month end, I reconcile the first
month with end balance of -$6.00, as this is the statement end balance.
When I go to reconcile the second month, it only seems to want to reconcile
either the expenses OR the credit piece - I seem to be unable to see both of
these transactions in the reconcilliation window at the same time.  Is this
a setting issue or am I entering this incorrectly?

Sorry for being dumb - just trying to find my way and make sure the start up
piece is completely correct!

Thanks for the guidance.
Colette



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