[GNC] Can a bank account have sub-accounts?

[Vincent Dawans]

This sort of fund accounting is typically taken care of by using the
analytical dimension feature offered by some accounting softwares.
Unfortunately gnuCash doesn't have that feature (yet).
Here is an article somewhat explaining how it works (for a different
accounting package):
https://www.bakertilly.com/insights/tame-your-wild-not-for-profit-chart-of-accounts-with-dimensions

There is a workaround in gnuCash I have used before in some cases but it
only works as long as all entries in a split come or go to the same
dimension.

Here I am just pasting from an old comment I wrote in the gnucash
enhancement request for this feature
https://bugs.gnucash.org/show_bug.cgi?id=113772

The current work-around I am using is to create my dimensions as a
bunch of accounts under a new high-level structure (Dimensions for
instance). Then I create a sub-account for each type of dimension
Departments, Projects, Events, etc). Finally under each sub-account I
create sub-accounts for each actual dimension. These accounts will
never have any money in them so they will not interfere with the real
GL accounts.  Instead, I simply use them to add additional splits
pointing to the dimension accounts (with no amount) to any GL
transaction I want to tag.

For instance: I want to tag a $1000 rent expense to the 'Marketing'
department dimension and 'ABC Street Fair' event dimension; I create
the following split.

Account                                          Debit           Credit
Assets:Current Assets:Checking Account                           $1000
Expenses:Rent                                    $1000
Dimension:Events:ABC Street Fair
Dimension:Department:Marketing

Then I can actually use the "Transaction Report" to see all
transaction related to Dimension:Events:ABC Street Fair for instance.

- Go in Reports-Transaction Report, then in the Report Options, go to
the accounts tab.
- Select all Report Accounts EXCEPT the dimension accounts and sub-accounts.
- In the Filter accounts, select the dimension you want to report on
(e.g. Dimension:Events:ABC Street Fair).
- In the filter type, select "Include Transactions to/from Filter accounts").
- Change Display, General and sorting options as needed.
- Now you have a transaction report for all transactions attached to
the ABC Street Fair dimension.


On Mon, Mar 13, 2023 at 1:09 PM Michael or Penny Novack <
stepbystepfarm at comcast.net> wrote:

> On 3/13/2023 10:35 AM, Mort Q wrote:
> > Hi Robert
> > I do have lots of expense accounts for repairs, catering, office
> expenses,
> > utilities, etc, and income accounts for fund raising, donations,
> > memberships, etc. so we can track income and expenses easily.  The
> GnuCash
> > reports really help people see where money is coming from and going to.
> > That's one of the reasons I was thinking of having the sub accounts - the
> > bank reports will be like an overall report but with the underlying break
> > down of fund allocation.  Does that make sense?
> >
> As noted, this will cost you the ability to use the "reconcile" feature.
>
> But folks, I've been there and done that as treasurer of orgs. This is a
> trade off that might make sense. Keep in mind that such orgs might have
> a rather low monthly volume of transactions against the checking
> account. Reconciling the old fashioned way no big deal. When there were
> FORMALLY restricted funds would do that the right way, but for
> informally restricted funds, just partitioning the checking account
> makes for less work.
>
> Another alternative (will let you  partially use the reconcile feature)
> is partition but only write checks against main (before writing the
> check for an expense qualified to use restricted, transfer the amount
> from that partition). The total balance amount according to the bank
> won't match the balance of the check writing partition but no bog deal
> to just add the remaining balances of the reserved partitions.
>
> Note that an organization that DOES keep restricted funds in a separate
> bank account, unless these are LARGE restricted funds, will likely have
> only one "other" bank account for all the restricted funds and that
> would be partitioned.
>
> Michael D Novack
>
>
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