[GNC] Split Transactions Version 5.6

[Kalpesh Patel]

Just to add some distinction, if you are coming from Intuit's Quicken world then its split is not same as GNC's split  ... the way I think is, split happens when "one" side of the transaction in double entry is broken down into multiple segments -- example: going out to a restaurant with a friend where you "split" the payment for the bill (cash from multiple people pays one bill; cash is one side of the transaction while bill is the other side). Of course both sides of the transaction can have split.

-----Original Message-----
From: Michael or Penny Novack <stepbystepfarm at comcast.net> 
Sent: Wednesday, April 10, 2024 6:25 PM
To: gnucash-user at gnucash.org
Subject: Re: [GNC] Split Transactions Version 5.6

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