[GNC] Sub-Accounting (Was: Problem with missing balance in a parent account **FINAL POST**)

[Michael or Penny Novack]

On 10/13/2022 1:46 PM, Adrien Monteleone wrote:
> I agree.
>
> Some years ago, there were a few threads here that delved into various 
> means of implementing an envelope method in GnuCash and my personal 
> take-away was, while it can be done, the only sane method is lots of 
> work. (you mention a not so sane method, or rather, one that could 
> quickly drive one insane trying to make sense of an error 6-12 months 
> later.)

Folks asking  for "envelope budgeting" in gnucash "general ledger" 
misunderstand what an accounting system is (what that part of it is)

"Envelope budgeting" is a PHYSICAL system where physical currency is 
placed in "envelopes" dedicated to a category of spending. With a 
discipline that money used for any expense only comes out of the 
envelope dedicated to the category of expense. To go ahead with a 
transaction even when the right envelope is empty requires consciously 
moving money from some other envelope. If unwilling to transfer, must 
abort the transaction, because the money simply isn't there.

Accounting (general ledger) is RECORDING what you have done. It imposes 
no controls. It is "after the fact". So partitioning your checking 
account into ":envelopes" in no way prevents you from writing a check 
just because that partition does not have enough remaining funds. 
Understand? partitioning into virtual  envelopes does NOT at the moment 
of check writing impose "envelope budgeting" controls. All it can do is 
tell you LATER if you have stuck to your budget.

Oh wait! That's what the budget features of gnucash can do for you. You 
are complaining that the budget feature doesn't enforce sticking to the 
budget in the way physical "envelope budgeting" did? But neither will 
partitioning your account into virtual envelopes. It just tells you 
afterward that you didn't follow the budget.

Michael D Novack

PS -- I say "writing a check" but use of a debit/eft card is the same.

PPS -- Are people asking for something that could provide the services 
of "envelope budgeting"?  This would best be an app running on a tablet. 
etc. that you would have with you. Before completing any transaction, 
you would enter the proposed transaction and it would tell you "go 
ahead" (and do that transaction) or "no, you don't have sufficient funds 
to spend in that category << and "do you want to transfer funds? >>