Is "Transfer" same as making a "Journal Entry"

[Adrien Monteleone]

Roger,

The Budget Total is showing you how much you have ‘left to budget’. If you’ve budgeted everything you plan on receiving, then it should be zero.

If you reduce an asset in your budget (in this case the investment account) it is assuming that is converted to spendable cash that can be budgeted. If you don’t budget the amount you withdraw, it is added to the total.

So yes, Income - Expense - Transfers = Total.

If you Received $2000, budgeted $2000 and then withdrew $1000, you’d have a total of $1000 left to budget.

$2000 - $2000 - (-$1000) = +$1000


Regards,
Adrien

> On Feb 5, 2018, at 4:26 PM, Roger Miskowicz <rmisko11 at gmail.com> wrote:
> 
> Thanks Adrien,
> 
> I have income and also make monthly withdrawal from an investment account.  In the Budget I enter Income and Transfer say (-$1,000)  from my Investment account and the Monthly Total in the Budget seems to be okay. 
> 
> I want the Total to be the difference between net income and net expenses and I think it does that where on the Budget Spread Sheet it appears the Monthly Total = Income - Expenses -Transfers.
> 
> I am not sure I really understand what is going on but it seems to give me the results for which I was looking.
> 
> On Mon, Feb 5, 2018 at 4:42 PM, Adrien Monteleone <adrien.monteleone at gmail.com <mailto:adrien.monteleone at gmail.com>> wrote:
> So far my experience with the budget module is that the ‘Transfers’ summary line is telling you about entries in asset and liability accounts. Entries in expense and income accounts do not get summed in the ‘Transfers’ line. (I don’t think Equity does either since Equity IS Income-Expenses)
> 
> So if you budget 90% of one months income/revenue towards expenses and then put 5% into a savings asset account and 5% as a payment (entered as a negative) into a liability account, your transfers summary line would be 10%. The payment of the liability would not be a budgeted expense but a budgeted transfer.
> 
> (the expense was recorded already when you assumed the liability)
> 
> This is how you would budget a mortgage or car payment. You could also budget payments on previous balances to consumer credit cards. (but you would not budget payments on those cards for expenses in the same month that you are budgeting for in their respective expense categories - that would be budgeting the same thing twice)
> 
> It gets tricky when you budget money into savings and then use some or all of that at some point as a payment on a liability, while still socking some away that month into savings. You have to enter the full payment (as a negative) in the liability cell for that period, but then the difference between the full amount you are taking out of savings and the amount you are putting into savings into that month’s savings budget cell. If you had $2000 of savings stored up and you wanted to plop that down as an extra principle payment on a house note, but still put in $250 into your savings account that month, you’re pulling a net $1750 out of the savings account. So your savings cell that month would be -$1750 (you took out $2000, but put $250 back in, you could also have taken only $1750 out, combined it with the $250 in your pocket and used that to make the extra payment.) and your mortgage liability cell would be -$2000. You just want to make sure each period’s cell reflects the net change in the account balance at the end of that period.
> 
> Regards,
> Adrien
> 
> > On Feb 5, 2018, at 8:42 AM, Roger Miskowicz <rmisko11 at gmail.com <mailto:rmisko11 at gmail.com>> wrote:
> >
> > I am curious as to what 'Transfer' means in the 'Budget'?
> >
> > On Mon, Feb 5, 2018 at 9:19 AM, Fran_3 via gnucash-user <
> > gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org>> wrote:
> >
> >> gnuCash Menue's offer:   Actions -> Transfer
> >> Which seems to allow a simple way to debit one account and credit
> >> another... right?
> >> if so isn't that the same functionality as what is called a "Journal
> >> Entry" ?
> >> Thanks.
> >>
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