beginning balance of income and expense accounts

[lnorden at mchsi.com]

I wasn't starting at the beginning of the year.
I stopped using Microsoft Money as of September, and have been fighting Quicken but recently realized it doesn't use a double entry system.  so I was hoping to start at 9-30 to be able to calculate net income for 2017.  I'd like to calculate 2017 net income if possible.    
  
When I set up my Income and Expense categories, it gave me the option to establish an opening balance.  But offset Equity.

-----Original Message-----
From: gnucash-user <gnucash-user-bounces+lnorden=mchsi.com at gnucash.org> On Behalf Of Dave H
Sent: Saturday, March 24, 2018 3:33 PM
To: Adrien Monteleone <adrien.monteleone at gmail.com>
Cc: gnucash-user at gnucash.org
Subject: Re: beginning balance of income and expense accounts

Aha good question Adrien, mine also only has Asset and Liabilities in the Opening Balances :-)

Cheers Dave H.

On 25 March 2018 at 06:29, Adrien Monteleone <adrien.monteleone at gmail.com>
wrote:

> How do you have an opening balance for income or expenses at the 
> beginning of the year? You haven’t earned or spent anything yet.
>
> You should be starting off with opening balances for assets and 
> liabilities. Then as you earn and spend, the net of those newer 
> entries are virtually calculated as ‘retained earnings/losses’ unless 
> or until you close the books with an official entry to equity. (which 
> is neither necessary, or necessarily desirable in Gnucash)
>
> Income should be balanced with debits to an asset(where the money went 
> to), not equity.
> Expenses should be balanced with credits to an asset(where the money 
> came from), not equity.
>
> Regards,
> Adrien
>
> > On Mar 24, 2018, at 3:09 PM, Lori Norden <lnorden at mchsi.com> wrote:
> >
> > I am starting Gnucash in the beginning of the year.  As I’m entering 
> > the
> beginning balance for each income and expense account, a transfer is 
> being made to my Equity Opening Balance account.
> >
> > For income beginning balance entries – credits income; debits Equity
> Opening Balance
> > For expense beginning balance entries – debits expense, credits 
> > Equity
> Opening Balance
> >
> > The problem is my Equity is reduced by the amount of net income I 
> > made
> as of the beginning date, but should be increased.
> >
> > Should I be offsetting the beginning balances for income and expense 
> > to
> something other than Equity Opening Balance?  That’s what I thought 
> the instructions indicated I should do.
> >
> > Thanks for your help
> >
> > Sent from Mail for Windows 10
> >
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