[GNC] (no subject)

[davidcousens49 at gmail.com]

Jesse,

It would appear that you are trying to setup the accounts to reflect the entry
for part 3D of the Statement of Business Activities in the tax form. This is not
the right way to go about setting up a process for obtaining the desired
information. 

The opening and closing Inventory values will be derived from the
Assets:Inventory: accounts. The purchase information will Ccome from an Expense
account associated to purchases of inventory. The wage costs will come form an
Expense account for wages associated with the production of your goods for sale.

These accounts should be in their normal positions under the top level accounts
Assets, Liabilities, Equity, Income and Expense. Setting up the appropriate
account structure for a manufacturing business is a very specialized endeavour
which will depend upon the structure and operational aspects of the business and
is highly dependent of business taxation rules in your jurisdiction. This is
something you will need professional accounting advice to setup appropriately
for a manufacturing business preferrably from an accountant specialized in cost
management accounting. If you do wish to learn more about it yourself something
like Cost Management - Accounting and Control by Hansen and Mowen is an
appropriate starting point but it starts from an assumption of a good basic
 knowledge of general Financial Accounting (usually comes up 2nd - 3rd year in
an accounting degree course).

Instead of rearranging the accounts,the way to do this is to create a custom
report which extracts the required information from the necessary accounts in
the CoA.

David Cousens 


On Sun, 2021-12-19 at 10:05 -0800, Jesse MacDougall wrote:
> Thanks for the reply Mike.  After reading your message I realize I should
> have shown what I am building this set of Financial Statements(FS) from.
> I am making this set of FS congruent to Canada Revenue Agency's GIFI codes
> for self employment tax payers.
> 
> The .pdf shows the estic I am trying to achieve.
> Does that make sense?
> 
> 
> On Sun, Dec 19, 2021 at 7:53 AM Michael or Penny Novack <
> stepbystepfarm at comcast.net> wrote:
> 
> > On 12/19/2021 2:11 AM, Jesse MacDougall wrote:
> > > I am trying to add a "label"(not sure if that is the right word) on
> > Income
> > > Statement "Cost of Goods Sold" and put accounts under COGS.  Like there
> > is
> > > with "Total Revenue".  What is happening is COGS is a parent account with
> > > sub accounts but I want to make COGS a label.
> > >    I am trying to achieve a bolded "COGS" on the IS.  I don't see
> > anywhere
> > > to achieve this.  Been stuck on this a few hours.  I have COGS as a
> > > placeholder currently.  Here is what I see:
> > 
> > You really need to start with a "fundamentals of bookkeeping, an
> > "accounting 101" sort of text.
> > 
> > a) You seem to have some sort of "business" embedded in a set of
> > personal books. I can understand WHY you might want to do that (they
> > share a bank account)
> > 
> > b) I have no idea what your (tax) reporting requirements might be and
> > how that affects "a real business" vs a very much side operation liable
> > to be classed as a "hobby" << important for over here as while both
> > businesses and hobbies pay tax on profits, only businesses can deduct
> > losses from other income >>
> > 
> > c) Inventory should be under assets, expensed as used, not as bought.
> > 
> > d) Because a CoA can have only one structure (one tree hierarchy) when
> > you choose to embed the business books into your personal books you will
> > NOT be able to produce a simple "Statement of Revenues and Expenses".
> > Same with the "Balance Sheet". In other words, you will probably want to
> > run multiple using account selection to disentangle accounts.
> > 
> > Michael D Novack
> > 
> > 
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