[GNC] Confused Entering A Refund To Credit Card Account

[Stephen M. Butler]

On 3/30/21 8:22 PM, Jack Frillman via gnucash-user wrote:
> I do know the difference between credit and a debt.
>
> Doesn't everyone track their sales tax as a separate expense item? Why 
> would you consider sales tax the same type of an expenditure as 
> groceries, gasoline or your electric bill?

Nope.  Why bother?  It's just an increase of that type of expense. Now, 
if you get to deduct it and need it for some other accounting purpose, 
then go ahead and knock yourself out.
>
> When I say a split 1 and split 2 I'm referring to  each separate item 
> in a split transaction
>
> I buy a pair of socks for $5 and a hammer for $10 and sales tax of 
> $0.24 for a total $15.24.
> There's a split transaction that comprises of three items:
> Socks  $5.00  makes an enter into the clothing account <----- that's 
> what I call split 1
> Hammer $10.00 makes an entry into the tools account <------ that's 
> what I call split 2
> Sales tax $0.24 makes an entry into the state sales tax account <----- 
> that's what I call split 3
>
> Maybe that's not the correct accounting term but then again I'm not an 
> accountant. I'm just trying to track where I spend my money.
If that works for you, great!
>
>
> On 3/30/21 9:47 PM, Michael or Penny Novack wrote:
>> I'm going to break into bits as there are several things here
>>
>>
>>> What's confusing me is that I was not forgetting to add any 
>>> transactions in the split. GNUCash kept doubling the amount of the 
>>> total and subtracting all my split transactions from that doubled 
>>> total it invented and adding the difference to the Unbalanced-USD. I 
>>> eventually figured out how to do it after much trial and error. Then 
>>> when I got to this refund and tried to enter the splits it started 
>>> doubling the total of the transaction again. I still don't 
>>> understand why it does that.
>>
>> 1) It really would help if you knew what a journal entry looked like 
>> when bookkeeping was done pen and ink on paper. Because that is the 
>> "view" you are in, what the transaction entry would look like in the 
>> journal.
>>
>> 2) It would help if you knew debit from credit. Here the user 
>> friendly labels might not be your friend because they are account 
>> sensitive (change with account type) but when you are entering a 
>> split, just left/right   debit/credit   What is causing the behavior 
>> you find mysterious (what you see as doubling is because you still 
>> see the line you originally entered before you hit "split". THAT line 
>> is now (also) appearing in the "journal view" of the transaction that 
>> hitting "split" has opened for you.
>>
>>
>>> The software I was using before handled the split transactions by 
>>> adding each split to it's own account like GNUCash but the method of 
>>> entry was more intuitive. You enter split 1 with it's associated 
>>> account, then split 2 with it's associated account, then split 3 
>>> with it's associated account, hit enter and you have your total. 
>>> With GNUCash I have to first enter the total amount* then enter 
>>> split 1 with it's associated account, then split 2 with it's 
>>> associated account, then split 3 with it's associated account, close 
>>> the split then hit enter. If I get one thing wrong it will invent an 
>>> extra amount and add that to the Unbalanced-USD account. When that 
>>> happens I delete the thing and start over.
>>
>> Practice splits. I am not QUITE sure what you mean by "split1", 
>> "split2" etc. You are presumably entering ONE split transaction, 
>> meaning a transaction that has more than just one debit and one 
>> credit. Essentially gnucash is providing a short cut method of 
>> entering transactions where only one of each. The "journal view" 
>> entry of a transaction is how ALL transactions used to be entered in 
>> the days before computer assisted accounting.
>>
>>>
>>> Most of my transactions are split transactions because I even when 
>>> purchase only one item there is also the sales tax which is it's own 
>>> split transaction. 
>>
>> Fair enough, but that's not a gnucash matter. I assume there is a 
>> good reason for you to be tracking sales tax expense separately from 
>> the ordinary expense of whatever was purchased. But again, use of the 
>> term "split". Say I write a check for $105 to buy a widget costing 
>> $100 and there was $5 sales tax on this purchase. That is ONE 
>> transaction, credit checking $105, debit widgets $100 and sales tax 
>> $5    Because more than one debit and one credit, can't use shortcut 
>> entry method but have to use "split" mode, or as I said "journal 
>> entry mode". There  are three LINES to this entry (one credit line 
>> and two debit lines) to this "split" transaction. The only reason you 
>> don't see two lines when entering a transaction that has exactly one 
>> debit and one credit is that you can use the shortcut method instead 
>> of "journal view" << but you COULD ask gnucash  to show you all 
>> transactions "journal view" --- go to some account. Look on the 
>> toolbar, "file" ......"View"....... and click on view to see your 
>> view options. TRY "journal view". Does what you see when you enter a 
>> "split" make any more sense
>>
>> Michael D Novack
>>
>> * PS -- that is with a ONE SIDED split and starting with the largest 
>> amount. If the transaction is split on both sides, more than one debt 
>> and more than one credit the amount for no account is going to be the 
>> "total" << although starting by "lying", starting with the total as 
>> the amount for the account you begin with and changing it later is 
>> one useful trick >>
>>

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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