[GNC] help with GNucash

[Geoff]

Hello again James Baxter

I hope that you are well.

Firstly, may I say THANK YOU for your very kind words in your other 
emails.  I am glad that we have been able to help you out.

Secondly, please accept my apologies for the delay in replying to your 
emails.  I am sure that you will understand that I have a busy life with 
many other commitments, and I cannot always attend to GnuCash questions 
immediately.

Now, let's knuckle down and look at the topic of income, and how to 
record it in GnuCash.  Income, as I am sure that you are aware, can come 
in many different forms including:-
* Salary & Wages
* Tips & Bonuses
* Capital Gains on the sale of assets
* Dividends and Distributions from investments
* Interest from bank accounts and bonds
* Gifts and tips
* Charity

What does this mean for GnuCash?  You have two choices:-
* Record all your income in a single Account - easy but NOT recommended
* Create a separate income Account for each form of Income

This choice is up to you James - you know what types of income you are 
likely to receive, so you must decide which income Accounts to set up.


 From an accounting perspective, the good news is that almost all income 
transactions are treated in the same fashion, and it is very easy to 
enter the transactions:-
(1) CREDIT the relevant income Account
(2) DEBIT the asset Account that the income was paid into - typically 
this is your bank account.


James, to help you visualise how this works in GnuCash, I have set up an 
example showing two types of income:- Salary, and Dividends.

The Salary example is simple:-
   Credit the "Income:Salary" account
   Debit the "Assets:Current Assets:Checking" account

The Dividend example is slightly more complicated:-
   Credit the "Income:Dividend Income" account
   Debit the "Assets:Current Assets:Bank" account
   Dummy** entry for the "Assets:Investments:Broker Account:NVDA" account

** This zero value "dummy" entry is not strictly necessary, but has the 
advantage of associating the income with the actual securities that paid 
the dividend, and is used when running the "Advanced Portfolio Report" 
to calculate the total return on the investment.


Please review the attached screenshots carefully.  The first one shows you:-
   Salary transactions in the "Assets:Current Assets:Checking" register
   Dividend transactions in the "Income:Dividend Income" register
   The results in the "Profit & Loss" report.

The second screenshot shows you the "Advanced Portfolio Report" and the 
"dummy" dividend income entries in the "Assets:Investments:Broker 
Account:NVDA" account.


James, I hope that this provides you with some assistance to account for 
your income using GnuCash.  Please "reply all" if you have any further 
questions.

Regards

Geoff
=====

On 12/10/2022 10:40 pm, James Baxter wrote:
> Goeff.
> Sir As I cant thank you enough for your help. I am looking to ask you if 
> you can. As you may have your income going into your Gnucash. I have it 
> with a saving account. But when adding my income, It wont work.
> 
> Can you help.
> James Baxter
> kabgaroo52 at yahoo.com
> 
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