Re: [SL] Handling prepayments

[Roy N. <RNi...@NB...>]

Prepaid expenses are treated pretty much the same as the sales tax/ 
VAT you collect on behalf of the government.   The money is paid into  
your operating account, but you also credit the Tax account (a  
liability) because the money does not belong to you.  When you remit  
the tax to the government, you pay it out of the tax account.


On 13-Feb-2007, at 20:32, Michael Hasse wrote:

> Mkay, that makes sense, but if there's a GL debiting the bank
> account, how does the bank account get credited again?  (Maybe I
> should just try it and see what happens!  Nothing like the hands-on
> approach, eh?  :)
>
>
> On Feb 13, 2007, at 10:35 AM, Dr Eberhard Lisse wrote:
>
>> They (pre-)pay into our bank account, and I make a GL entry
>> debiting the
>> bank account, crediting the Pre-Payment account. Then I do a
>> Cash->Receipt for the client and apply the payment selecting not the
>> bank account but the Pre-Payment account from the Payment pull-down
>> menu.
>>
>> That's it.
>>
>> The actual money has always been in the bank account, but until you
>> "pay" an invoice from Pre-Pay that money doesn't really belong to you
>> yet, ergo it is not Revenue but Liability.
>>
>> And since we have about 15 Pre-Payers it's not really a major  
>> issue. I
>> have one for payments that I don't know which invoices they are for,
>> usually when I suspend services for delinquency this sorts itself
>> out :-)-O.
>>
>> greetings, el
>>
>> on 2/13/07 8:21 AM Michael Hasse said the following:
>>> Good point on the taxes!
>>>     So to confirm I'm understanding, you've got a separate Liability
>>> account for each prepaying client?  And then as the funds are  
>>> applied
>>> to invoices those amounts get moved over to the actual bank accounts
>>> on asset side of the balance sheet?  Are there two payment line  
>>> items
>>> entered on each invoice then, one each for liability and asset?
>>>
>>>
>>> Thanks!
>>>
>>> Michael
>>
>> --------------------------------------------------------------------- 
>> -
>> ---
>> Using Tomcat but need to do more? Need to support web services,
>> security?
>> Get stuff done quickly with pre-integrated technology to make your
>> job easier.
>> Download IBM WebSphere Application Server v.1.0.1 based on Apache
>> Geronimo
>> http://sel.as-us.falkag.net/sel?
>> cmd=lnk&kid=120709&bid=263057&dat=121642
>> _______________________________________________
>> sql-ledger-users mailing list
>> sql...@li...
>> https://lists.sourceforge.net/lists/listinfo/sql-ledger-users
>
>
> ---------------------------------------------------------------------- 
> ---
> Using Tomcat but need to do more? Need to support web services,  
> security?
> Get stuff done quickly with pre-integrated technology to make your  
> job easier.
> Download IBM WebSphere Application Server v.1.0.1 based on Apache  
> Geronimo
> http://sel.as-us.falkag.net/sel? 
> cmd=lnk&kid=120709&bid=263057&dat=121642
> _______________________________________________
> sql-ledger-users mailing list
> sql...@li...
> https://lists.sourceforge.net/lists/listinfo/sql-ledger-users