[GNC] New Balance entry

[Michael or Penny Novack]

On 10/30/2023 6:45 AM, Mahon Finbar via gnucash-user wrote:
> Exactly my experience, and why I asked, despite previous experience.
>
> I am now at the stage where my Gnucash file is y but my bank account 
> is not....
>
> Further searching needed,
>
> Barry 

BESIDES actual errors, a difference between what the bank says is in 
your account and what your books say is the account is normal UNLESS all 
transactions are instantaneous.

When I write a check, stick it in an envelope, and mail off that 
envelope THAT is the time when I have made "constructive payment" < its 
why postmarks have legal significance"> So that is the date of a 
reduction in the bank account in MY books. The check has to arrive, be 
deposited by the recipient, and return to my bank before it gets 
deducted in the bank's records of my account.

Even when I do an electronic transfer between my account at one bank and 
my account at another (transfer of funds) it is usually not instantaneous.

The point I am making is if during the time interval when I have any 
such event outstanding, what I have in my books and what the bank has 
will NOT agree. In the old pre computer "bank reconciliation" process 
accounting for everything "in transit" had to be done first before 
looking at differences as an error or errors.

Michael D Novack

PS1: Legally, you are not allowed to utilize "float" << write checks 
where there are not sufficient funds WHEN WRITTEN but expect the funds 
to be there before the checks arrive back at the bank.>>

PS2: If you are not entering in your books when written, waiting to 
download transactions from what the bank has you are never going to be 
able to spot one sort of bank error where a check is misread?misentered. 
Can also get into problems where a check takes a long time to get back 
so there could be insufficient funds in your account.