[GNC] Another "multi-account" logical issue - any advice on how to register this?

[David Cousens]

Flavio,

My comment is purely from the perspective of a non-buiness activity and
Michael's Chris and Murugan's comments re shipping are definitely valid
and would apply particularly where there is any intention to resell
items purchased for profit and can be applied even in the private case
with regard to items which might have a high intrinsic value and can be
regarded as an investment. It ultimately all gets down to the specifics
of the business/tax legislation in Switzerland in your case.

David



On Wed, 2024-10-02 at 11:47 +0200, Boniforti Flavio wrote:
> Hi David.
> 
> Thanks for your feedback - along with all other replies and posts in
> this thread! :-)
> 
> I will think about whether I want to consider the shipping expense as
> part of the value of the goods I bought or not. I understand the
> difference and keeping shipping costs separated from the goods value
> looks correct to me. However, I always considered shipping costs as
> part of the goods value. I thought "I paid 220 for this guitar, even
> though 20 are for shipping, so to me it's worth 220" (I know this is
> wrong, because shipping doesn't add value to the goods).
> 
> Thanks to everyone!
> F.
> 
> https://www.instagram.com/boniforti_music
> https://soundcloud.com/boniforti_music
> https://bonny-j.bandcamp.com
> 
> 
> Am Mo., 30. Sept. 2024 um 22:32 Uhr schrieb David Cousens
> <davidcousens49 at gmail.com>:
> > Flavio,
> > 
> > Shipping is a service so it does not add to the value of your
> > assets so
> > it is simply an expense so the transaction becomes:
> > 
> > PURCHASE:
> > Increase "Assets:Material:Item #1" of 300
> > Decrease "Checking account" by 300.
> > Increase "Expenses:Postage" of 10.
> > Decrease "Checking account" by 10.
> > 
> > then there is no need to account for the shipping at time of sale
> > SALE:
> > Increase "Checking account" by 320.
> > Decrease "Assets:Material:Item #1" by 300.
> > Increase  "Income:Sales"        by  20.
> > 
> > The difference between "Income:Sales" and "Expenses:Postage" is
> > your
> > profit on the transaction  and the difference between the balance
> > of
> > the top level Income account and the top level Expenses account
> > will
> > represent your overall profit.  If you needed to know the profit on
> > an
> > individual item you would add a subaccount to the Expenses:Postage
> > :Item #1.
> > 
> > David Cousens
> > 
> > 
> > On Mon, 2024-09-30 at 18:47 +0200, Boniforti Flavio wrote:
> > > Hi all.
> > > I'm again stuck with a specific type of transaction and would
> > like to
> > > have
> > > it validated (or corrected). Suggestions on how you would do it
> > are
> > > welcome
> > > as well - I might not be using the most intuitive way of
> > registering
> > > it.
> > > 
> > > So...
> > > 
> > > I bought an item for 300. Paid for it from my checking account.
> > > I paid for shipping separately 10. Paid for this as well from my
> > > checking
> > > account.
> > > Sold the item for 320, which was wire-transferred into my
> > checking
> > > account.
> > > I have earned 10 from the transaction.
> > > 
> > > I have created an account for that item:
> > > Assets:Material:Item #1
> > > Also, I've added a shipping sub-account to it:
> > > Assets:Material:Item #1:Shipping
> > > 
> > > Then I entered the split transaction as follows:
> > > 
> > > PURCHASE =
> > > Increase "Assets:Material:Item #1" of 300.
> > > Increase "Assets:Material:Item #1:Shipping" of 10.
> > > Decrease "Checking account" by 300.
> > > Decrease "Checking account" by 10.
> > > As I also have an account for "Postage expenses", how would I
> > have to
> > > register the 10 bucks I spent for shipping, so that it also
> > accounts
> > > towards the postage expenses in general?
> > > 
> > > SALE =
> > > Increase "Checking account" by 320.
> > > Decrease "Assets:Material:Item #1:Shipping" by 10.
> > > Decrease "Assets:Material:Item #1" by 300.
> > > Increase "Sales Surplus" by 10.
> > > 
> > > Thanks (again) for your help!
> > > F.
> > > 
> > > https://www.instagram.com/boniforti_music
> > > https://soundcloud.com/boniforti_music
> > > https://bonny-j.bandcamp.com
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