[GNC] Entering paycheck details of Employer sponsored deductions

[David Carlson]

Umakanth,

Income (and Expense) accounts always need to be under the Income or
Expense  top account.  The only way to associate them to assets or
liabilities is to have similar names.  I normally name them with the base
name first, then some significant detail then end with Interest or whatever
is best description. I also avoid spaces or punctuation in account names.
I am sure David T uses his own method to do the same thing.

David Carlson

On Sat, Apr 20, 2019 at 8:11 AM D via gnucash-user <gnucash-user at gnucash.org>
wrote:

> Sorry. I didn't really answer your second question.
>
> First question, why do you need to calculate the two interest figures
> separately? Does the fund manager do this?
>
> As for calculating interest, you will find it fraught with difficulty. The
> likelihood that your calculations will match the institution's every time
> is extremely low. I gave up on that long ago, and instead enter such
> information from the statement.
>
> David
>
> On April 20, 2019, at 6:27 PM, D via gnucash-user <
> gnucash-user at gnucash.org> wrote:
>
> I track various such items on my own books.
>
> I probably wouldn't have separate accounts for the mandatory and the
> voluntary contributions; they are calculated as one. I would enter each
> contribution type as a separate split, though. That's how I've done it
> myself.
>
> For what it's worth, I enter employer contributions as separate income
> transactions; that way, I end up with a clear sense of the overall
> activity. I have an income account for employer contributions to keep them
> isolated.
>
> In my accounts, I have all of this in one asset account. As I see it, the
> interest on your P+Q, when added to the interest on your R, is the same as
> the interest on P+Q+R, unless the rates are different.
>
> Interest is income; you might as well get used to it. Interest accrued
> will be entered as income, going into the asset account.
>
> David
>
> On April 20, 2019, at 3:37 PM, Umakanth V S <sheruvs at gmail.com> wrote:
>
> Hi All,
>
> I have recently started using GnuCash to keep track of my personal
> expenses. I find it to be a great software and am still learning its
> features.  This is my first post and it pertains to entering details of
> employer sponsored deductions from paycheck in GnuCash. I have read other
> posts related to the subject of paycheck, but could not find any that
> clarifies my doubts.
>
> We have a scheme called PF (Provident Fund), in which some amount is
> (mandatorily) deducted from the paycheck and credited to the PF. I can also
> make an additional (voluntary) contribution. The employer contributes an
> amount which also goes into this Fund. These contributions generate a
> compounded interest. Details as follows:
>
> Employee contrib (mandatory) = P
> Employee contrib (voluntary) = Q
> P+Q generates compound interest A
> P+Q+A = balance of employee contribution
>
> Employer contrib = R
> R generates compound interest B
> R+B = balance of employer contrib
>
> All taken together (P+Q+A+R+B) gives the total balance outstanding in the
> PF account.
> I have created the account structure as follows:
>
>
> Assets:PF
> Assets:PF:Employee_contrib:Employee_contrib-mandatory
> Assets:PF:Employee_contrib:Employee_contrib-voluntary
> Assets:PF:Employer_contrib:Employer_contrib
>
> I have created all above accounts as 'Bank' Account Type, because, if
> required, I can take a loan from this PF account.
>
> I have two issues:
>
> 1.  I want to create seperate accounts for Interest earned for my
> contribution and employer contrib. I tried to do that as
> Income:Interest-Employee_contrib and tried to place it under the
> Assets:PF:Employee_contrib: location in the account tree. I am not able to
> assign it as an Income type. The available types are Bank,Cash,Asset etc .
> How do I do this or what category do I assign it?
> I would like both the Interest accounts to be under Assets:PF (and not
> under Income: )so that I can get a consolidated view of the complete PF
> account.
>
> 2. How do I set up auto calculation of the compound interest A & B for both
> the employee and employer contribution accounts?
>
> Thanks in advance,
> Umakanth
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-- 
David Carlson