[GNC] Third Party Transactions & More

[David Cousens]

Lex 

One way to track the first item is to setup your checking account with sub-
accounts for the clients who pay you funds in advance and debit the sub-account
for a given client when you receive the funds from the client and credit an
income account as normal. When you pay the clients expenses credit the
appropriate checking account sub account and debit the Expense account.  It
makes reconciling the checking account a bit more difficult bu the GnuCash
reconciliation routine can include transactions from sub-accounts.

The second situation is a classical accounts receivable situation. You are
extending credit to the client until they pay their bill Read the help manual re
the business features to get started.
https://www.gnucash.org/docs/v4/C/gnucash-help/chapter_busnss.html

You can issue invoices to the client detailing the services. creating the
invoice will credit an income  account (selectable) and debit the Accounts
Receivable account. When you receive the clients payment the Accounts Receivable
account is  credited for the amount of the payment  and your checking account is
debited for the same amount. In this case there is no need to use a clients sub-
account as the record is in the invoice and payments and you have no unused
client funds in your checking account.

It would be advisable to get professional advice relevant to the taxation and
business legislation you operate under. The above is a basic generic treatment
and may not necessarily meet your needs.

David Cousens


\On Wed, 2023-05-24 at 10:17 -0600, Lex Medeiros wrote:
> Dear Group:
> 
> I am a beginner with GnuCash.  Could someone share with me how to record
> these transactions using Gnucash?
> 
> 1 - One of our clients has a company that  has revolving funds from
> clients.  We use this fund to pay for client's expenses.  For example, we
> have a revolving fund of $1,000USD.  Then, client asks us to pay her energy
> bill, house cleaning, and other services.
> 
> 2- Sometimes we make one time payments on behalf of clients without a
> fund.  For example, a clients asks us to hire a chef and pay this chef for
> the services client receives. Sometimes we pay with our credit card and
> then we simply pay the credit card when a client pays us for the service we
> paid.
> 
> I appreciate your guidance as how to record the above instances in GnuCash.
> 
> Thank you,
> 
> Lex
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