[GNC] Split Transactions Version 5.6

[Michael or Penny Novack]

Best not to think of the two sides of a transaction as "splits". In 
double entry bookkeeping there are ALWAYS two sides of every 
transaction.  It would be silly to think of every transaction as split.

Confusion for new users is perhaps because gnucash allows a shortcut 
method of entry when the transaction has only one debit account and one 
credit account. While that is in effect a special case, the overwhelming 
majority of transactions will only affect two accounts. So it is very 
worthwhile to have a time saving shortcut.

But I question if that's the best way to LEARN using gnucash, especially 
if you are learning double entry bookkeeping at the same time. If you 
have never done double entry bookkeeping before, other software or back 
in the old days of pen and ink on paper (or spreadsheets could mimic 
that) I suggest learning without the shortcut.

Turn on "journal mode" for transaction entry. This will more closely 
mimic the old days (and typical accounting texts). Transactions were 
first entered into a book called the "journal". Each entry would have a 
date, a list of accounts being debited (that is, possibly more than one) 
each with an amount, a list of accounts being credited (again possibly 
more than one) with their amounts, and finally a description. Our old 
books had a box to check whether posted to the journal, but with gnucash 
or similar software, when you hit enter automatically posted << 
transcription errors during posting were the bane of our existence -- 
the computer will never transpose digits, etc. >>

See, so far no mention of "splits". That comes into p;lay only when we 
use the shortcut.

If the transaction involves only two accounts, gnucash will let you 
enter that transaction directly in the ledger starting with EITHER. In 
this mode you enter date, check number if any, amount (you don't have to 
specify account because you are IN that account) and then select the 
other account <<you also get to add a description >> In other words, you 
didn't have to enter in the (virtual) journal. But what if there is more 
than one debit or more than one credit. Now we have to hit the "split" 
button, which puts us in journal entry mode.

That's all that "split" means in gnucash, either the debit side or the 
credit side (or both) are split into more than one account making up 
that side of the transaction.


Michael D Novack