Gnucash usage and reporting

[John Ralls]

> On Oct 13, 2016, at 7:31 AM, Matrix Treasurer <treasurer at matrixguildvic.org.au> wrote:
> 
> Hi Everyone,
> 
> Back in the day, I was an accountant for nearly 30 years, so do know my way around financial reporting. I would like to say that Gnucash is simply a terrific piece of software and I use it to manage all the accounting needs of the 2-3 volunteer organisations I work with, not to mention I recommend it to everyone else!
> 
> I have struck a problem that does not make sense to me and I am aware that it is said there is no need to close the books annually in Gnucash, but I like to be neat and tidy at the end of each financial year, so I tend to do it. Fortunately, it is very easy to reverse the transactions if necessary.
> 
> This is the first time I have come across a treatment that does not fit with what I thought I know. In this instance, when I transfer the closing income/expense balances to the Net result account, the amount differs to the actual financial result for the year. The actual difference is represented by an amount I have expensed as a provision for future buildings maintenance. Yet this amount is not included (?) when I close the books, with the final result of surplus for the year being overstated by the exact amount of provision. Drives me nuts! Any thoughts as to why this is so? The item in question has been clearly identified as an expense type, even though it it never going to be a cash item, since it does not represent an actual payment of money - maybe that is the problem. Your thoughts on this would be most helpful, Thank you.

What's the other account for the provision transaction?

Regards,
John Ralls