[GNC] Credit Card Opening Balance

Smartner LLC finance at smartnerllc.com
Sun May 1 21:14:17 EDT 2022


Thank you for your response Jim.

When I get the credit card statement, I transfer the statement balance
     from the "<Bank><Product>CreditCard Transactions" account
     to the "<Bank><Product>CreditCard Statements" account.

The balance on the "Statements" account helps me track the balance due 
for payment.

The Balance on the "Transactions" account help me track spending in the 
current billing cycle.

The total of the two balances appears as balance for the parent account 
<Bank><Product>CreditCard anyway, so I know how much of my credit limit 
I am using.


I am aware I might be overdoing this, but it helps me keep things clear 
between me and my partners and CPA in our small business.


On 5/1/22 19:23, Jim DeLaHunt wrote:
> On 2022-05-01 16:27, Smartner LLC wrote:
>
>> …I tend to maintain the following structure for every credit card
>>
>> Liability:<Bank><Product>Credit Card
>>     Liability:<Bank><ProductCreditCard:Statements
>>     Liability:<Bank><ProductCreditCard:Transactions
>>
>> This helps me keep the transactions and statements separate and 
>> ensure that I can track the expenses since the last generated 
>> statement separately. Meanwhile, I can track total outstanding on the 
>> card  on the rolled up balance for the liability account for the 
>> credit card.…
>
> If that works for you, great. However, it is not the structure I use, 
> and I don't understand how you use the separation between statements 
> and transactions.
>
> My structure is a single GnuCash "account" for 
> Liability:<Bank><Product>Credit Card. I enter all transactions on that 
> card in that account. When statements come in, I use the GnuCash 
> "reconciliation" feature to mark the transactions which the card 
> company confirms on its statement as "reconciled" in my GnuCash books. 
> The expenses since the last generated statement are simply those which 
> do not have the status of "reconciled". The View… Filter… dialogue 
> allows me to hide all the reconciled transactions if I want.
>
> What do you do with the transactions in your 
> Liability:<Bank><Product>CreditCard:Transactions account when the 
> following month's statement comes in?  Do you edit each transaction so 
> that it moves to the Liability:<Bank><Product>CreditCard:Statements 
> account instead?  That looks to me like more work than using the 
> reconciliation feature, and I don't see what extra utility it would 
> give you.
>
> By the way, I am keeping books for my personal finances and a small 
> self-proprietership business. My stakes are low, and I have no auditor 
> to satisfy. I see no need to close my books at the end of the year; 
> some of my account registers span 10-20 years.
>
> Best regards,
>      —Jim DeLaHunt
>
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