[GNC] Anyone using GnuCash to account for US PPP or EIDL funds?

Michael or Penny Novack stepbystepfarm at comcast.net
Sat May 23 12:47:23 EDT 2020


On 5/23/2020 11:56 AM, Adrien Monteleone wrote:
> To continue on Dale’s notes:
>
> Regardless of the real-world treatment of the funds, you can create a sub-account in GnuCash under your bank account and treat the funds as segregated. That will also make reporting easier as you might not need to use a tagging system, but you might still find tagging useful for some other dimension of categorization. (maybe you want tag transactions as ‘payroll’, ‘utilities’, etc.)

  This is not completely unlike the situation of a non-profit receiving 
a grant. Can only be used for certain purposes. In this case, when a 
qualifying expense has been paid, also transfer the amount between two 
liabilities, one for unconditionally owed (not used yet for purpose) and 
the second for "has been used for purpose, now conditional" (might be 
forgiven). The non-profit would instead have credited a "grant income" 
account.

JUST using a partition in the bank account might not reflect the actual 
situation. Sure, you can transfer between the partitions when a 
qualifying expense has been paid. But you do not know if that part of 
the loan will have to be paid back << what is not used for a qualifying 
expense WILL have to be paid back >>

Michael D Novack

PS: As usual, with the disclaimer that I lack credentials to give this 
sort of advice. But THIS is a case where I bet most of the pros are 
having problems deciding how should be done.






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