[GNC] HRA reimbursements

[NoobAlice]

On 2025-05-31 11:41 PM, Bill Wohler wrote:
> Thanks!
> 
> I missed a point. Let's say my company puts $100 in the Receivable:HRA
> account. Then that $50 that was reimbursed to me leaves that account
> with $50, which I want to track. How could we modify your recipe to zero
> out all of the transactions except for Receivable:HRA? That is, it
> should be left with $50, not $100.
> 
> Maybe my partner's original purchase is tracked in an equity account?
> The follow zeros out my checking and my finances with my partner
> and leaves the HRA smaller than it started as desired, but uses an
> Equity account to do it. Is this copacetic?
> 
> Partner buys thing:
> DR Equity
> CR Payable:Partner
> 
> HRA reimburses me:
> DR Checking
> CR Receivable:HRA
> 
> I reimburse partner:
> DR Payable:Partner
> CR Checking
> 

No equity here.  Equity is your net of assets and liabilities.

So, if you want to track your HRA balance...  Let us pretend that the 
thing your partner buys is actually $45 so that the item and the 
remaining balance in the HRA are different numbers.

Here's the new entry that will be the biggest change:
Company funds your HRA:
$100 DR HRA (asset account)
$100 CR Compensation:Company Medical (income account)

Partner buys you thing:
$45 DR Medical expense
$45 CR Payable:Partner

HRA reimburses you for thing:
$45 DR Checking
$45 CR HRA (asset account)

You reimburse partner:
$45 DR Payable:Partner
$45 CR Checking

At this point your nets are $0 checking, $0 payable to partner, $55 DR 
in HRA, $45 DR in medical expense, and $100 CR in non-wage compensation.

You buy another medical thing:
$15 DR Medical expense
$15 CR Checking

And the HRA reimburses you again:
$15 DR Checking
$15 CR HRA (asset account)

Now say you leave the company and your remaining HRA balance is forfeited:
$100 - $45 - $15 = $40
$40 CR Compensation:Company Medical (income account)
$40 DR HRA (asset account)

Now your use-it-or-lose-it HRA balance is zero, and your non-wage 
compensation is $60 CR and medical expenses $60 DR.

I like to track the medical expenses and employer medical contributions 
as two separate accounts.  This can help later if you are looking at 
other, prospective employers' compensation plans.  It lets you see that 
current employer pays you $500 + $100 medical = $600 in a year, but new 
employer wants to pay you $550 + $10 medical = $560, so you would be 
worse off at new employer.  I track employer retirement contributions 
the same way.