[GNC] Net Worth Barchart

Liz edodd at billiau.net
Tue Dec 6 03:55:35 EST 2022


On Tue, 6 Dec 2022 00:57:44 -0600
Adrien Monteleone <adrien.monteleone at lusfiber.net> wrote:

> Liz,
> 
> I just ran the chart for myself and indeed, it appears your
> Liabilities are backwards. That is, if you owe money, they should
> have a Credit balance, but yours show as Debit balance. (The *normal*
> balance of a Liability account is Credit, not Debit)
> 
> What is your preference setting for Accounts > Reversed Balanced
> Accounts?
> 
> If it is "none" or "Income & Expense" then your Liability accounts
> will show as negative amounts in the Accounts tab if they are a
> Credit balance.
> 
> If it is "Credit accounts" then they will show as positive on the CoA.
> 
> If your balances are opposite of that, then your balances are
> reversed. (they are 'contra balances' from what is normally expected)
> 
> -----
> 
> As to your specific situational question:
> 
> I'm not real clear on your SX template. Can you provide it for 
> clarification? (no need for amounts, It's just to clear up which
> splits you have as Debits & Credits)
> 
>  From what I gather, this is a transaction to record money you pay as 
> wages (to yourself or others), the liability for taxes on those
> wages, and super (??) payments. (not sure what that last part is)
> 
> I'm not quite understanding why that is all in one transaction. But
> I'll take a guess, maybe my below examples will be roughly correct...
> 
> 
> 
> 1. Payments of wages by a company to employees would simplistically
> be something like:
> 
> Dr. Expenses:Labor
>    Cr. Cash
> 
> 
> 
> 2. A (likely) separate transaction would record payroll tax liability 
> such as:
> 
> Dr. Expenses:Payroll Taxes
>    Cr. Liabilities:Payroll Taxes Due
> 
> (arguably, you can put this all in one transaction)
> 
> 
> 
> 3. Then when you make the actual payment:
> 
> Dr. Liabilities:Payroll Taxes Due
>    Cr. Cash
> 
> Which reduces the previous liability incurred and recorded, by the 
> amount of your payment.
> 
> You'd repeat that second transaction for any adjustments you are
> advised to make as you note, and then zero it out with another
> payment. (or otherwise your 4th Quarter payment is simply larger)
> 
> -----
> 
> If the situation is concerning something like a 'self-employed'
> status and you're making quarterly estimated income tax payments, the
> treatment would generally be similar, just different terminology
> and/or account names.
> 
> -----
> 
> Now, in the case (which it appears you are dealing with) that you are 
> paying that tax liability at the same time as wages are disbursed,
> the treatment is similar save that you can record the payment all at
> once and *maybe* skip the intermediary step of 'Taxes Due' splits:
> 
> Dr. Expenses:Labor
> Dr. Expenses:Payroll Taxes
>    Cr. Cash
> 
> You would still record the Liability of Taxes Due when you are
> provided the adjustment you need to make, and then zero it out with
> the final payment.
> 
> However, I'd bet good practice would be to record those Liability
> splits regardless, just to show a trail that they were incurred, and
> then covered, thus:
> 
> Dr. Expenses:Labor			100
> Dr. Liabilities:Payroll Taxes Due	 10
> Dr. Expenses:Payroll Taxes		 10
>    Cr. Liabilities:Payroll Taxes Due  		 10
>    Cr. Cash					110
> 
> (the Credit to Cash being equal to the first two Debits and splits 3
> & 4 must be also equal to each other)
> 
> *Hopefully* the three middle splits are all equal, but if the
> Liability as estimated is not fully paid for, or overpaid, the Debit
> to the 'Due' account (split #2) would be less or more accordingly.
> 
> 
> Regards,
> Adrien
> 
> p.s.—that's how it would look on paper!
> 

Thanks Adrien
No I didn't have any reversed balance accounts set
and it wasn't the Payroll tax, that was OK.

'Super' is the standard way of pronouncing 'Superannuation' here, and
that is retirement savings in plain English.

The image is the three monthly accounting for GST and company tax
prepayment (PAYG) and the monthly payroll tax payment.
Liabilities: Tax Liabilities is the same value as 
Expenses: Salaries : tax payments
Expenses:Company Tax is after Geoff put me straight

Part of my problem was calling everything "Tax" instead of being more
specific.
Now if I rename the Expenses:Salaries:Tax payments to Ex:S:Payroll Tax
that could help the next lot of confusion.

For those who wonder why I have so many blanks in a scheduled
transaction, every three months I do some computation to fill in the
blanks.
A prepared template means I don't miss any and claim everything they
owe me.

Liz
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