RE: relation of expense to a service

[Caffeinate T. W. <moc...@ya...>]

--- "Leo R. Masciuch" <Le...@Ne...> wrote:
> To increase an expense is to increase an asset.  This second entry of
> the double entry would likely be Accounts Receivable in this case
> since
> you would be invoicing your customer.

from the default setup, it has for the Expense: 

  5010-Purchases
  5100-Freight
  5781-Internet

I chose 5781-Internet as an expense for my new service. Which didn't
really make sense to be, but it fits more than the other two options.

When a customer make a purchase of a service, like this particlar ad
space, Account Receivable gets Debited, and Sales/Ad Banner gets
credited.

But what about the expense (5781-Internet) chosen above? I don't see
any relation to that expense account in any chart after a customer get
invoiced for the ad banner.

> -----Original Message-----
> From: Caffeinate The World [mailto:moc...@ya...]
> Sent: December 31, 2001 15:51
> To: sql...@li...
> Subject: relation of expense to a service
> 
> 
> We sell ad space on our web site. I think it would be considered a
> service in inventor and not a part. So I needed to add a service:
> 
> 1. Inventory / Add Service
> 2. Number: BRS120120 
>    ...
> Then I get to Links Accounts:
> 
> Income: 4050-Sales/Banner Ads
> Expense: *** THIS IS WHERE I DON'T GET IT ***
> 
> How does expense relate to the service being sold?
> 
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