[GNC] confusion over a/p payable - receivable

[Maf. King]

On Wednesday, 19 September 2018 01:35:58 BST johneire31 wrote:
> Im new to this program and really need a hand.  I have read the manual and
> tried a good few searches also.
> 
> My issue is to do with billing.
> 
> Ok, I have a set of business accounts up an going.
> I have set up vendors
> I enter a new vendors bill, add all the details and select expense:
> stationary as the as expense account. the amount is $34
> 
> I then post it and I have set up the A/P payables under liabilities and all
> seems well.
> 
> Here is where I get confused.  I look at the chart of accounts and go to
> Liabilities - Payables and the transaction is listed as a bill which makes
> perfect sense.
> 
> I then go an pay invoice and transfer from checking account.   The result is
> that in payables its stated as a payment and the amount is deducted from
> payables and this too makes sense.
> 
> Now, when I go to the expense account: Stationary the transaction is listed
> as -$34 in red.  Why does it not reduce this expense account once I make a
> payment similar to what it did in payables? and why is it a negative
> balance?
> 
> Is it meant to reduce the expense account or  does the expense account just
> keep add up all the transactions that are put in it?
> 

Hi,

Welcome to Gnucash & the list.

Yes, the expense categories act to total up what you have spent on any given 
items.

You swapped £34 cash at bank for £34 of paper products.  It just went through 
an intermediate stage of "I owe this person" in A/P.  You've still spent the 
money.  Next time you buy envelopes, the Expense Account will increase to 
perhaps £49 - your total (ie year to date) expense that you can claim against 
your tax bill in due course.

as to the red expense total, check the preferences: Accounts Tab -> Reversed 
Balanced Accounts -> suggest setting to Credit Accounts  - see if that helps.

HTH,
Maf.