[GNC] Why is part of a split registered as "rebate" in the Transfer account?

[Michael or Penny Novack]

On 11/21/2024 6:32 PM, Boniforti Flavio wrote:
> Hi Michael.
> Thanks for your message.
> You mean this type of view?
> image.png
> F.


The view is right, but the transaction isn't. The problem is that 
accounts of type income and expense are on opposite sides of the ledger.

Let's step back for a bit and discuss the transaction in terms of what 
happened. You had an item of inventory on your books for U. You sold it 
for V, the buyer giving you a check for V which you deposited in your 
bank account. But part of this deal was that you pay for shipment to the 
buyer and that cost W, which you paid for somehow, a check, money from 
your pocket, a credit card, etc.

Is that a correct description?

So you had a decrease in an asset (of all of its value, U) and an 
increase in an asset (bank account goes up by that deposit  V) and an 
increase in income (sales) for the
'profit, not including expenses V-U)       and so far in balance with 
total debits = total credits ------ REMEMBER, an increase of an account 
of type income is a credit.

BUT --- you also had an expense for the shipping cost X (a debit) which 
you paid for somehow, a credit to a bank account, a wallet, or a credit 
card charge.

In your entry, you have BOTH the income account and the expense account 
as credits. Expense accounts are on the debit side of the ledger.

Michael D Novack