[GNC] gnucash-user Digest,new question

[Adrien Monteleone]

Eric,

This is an accounting question. I'd suggest you should instead be using 
a 'Salaries Payable' or similar liability account for the labor portions.

This may or may not be the same text you are referencing, but check out 
this explanation:

https://www.principlesofaccounting.com/chapter-19/tracking-job-costs/

(note, they break up the material, labor & overhead entries, but you can 
certainly combine them if that fits your business better)

Regards,
Adrien

On 10/23/24 8:34 PM, Eric Hammond wrote:
> Entering my labor, parts and supplies would look like this:
> Assets:Jobs:xxxxxx:WIP         500.00
> ________:Direct Labor                           120.00
> Assets: Stock                                               20.00
> ________:Direct Labor                            360.00
> 
> 1. If I use "Expenses:Direct Labor" as the credit account then those account balances are all negative (which, at least, looks weird in an expense journal)
> 2. If i use "Income:Direct Labor" the balances are positive.
> 
> With settings #2 all the tax reports look correct. I didn't check during #1 settings.
> Which one is correct? Does GnuCash care about the negative balance? Is there a better way log it?