Re: Error when Adding a Service

[alta <al...@al...>]

Paul ...

Your inputs are always of value.

In my case, I consider my writing of articles to be a part of the 
business.  It's a form of advertising that even pays me some.  So, I 
don't really consider it personal, and that's why I am running it 
through sql-ledger.

... Reed


On Thursday 28 February 2002 11:31, you wrote:
> # start offtopic
> Sorry, forgot to post to the list as well..
> I quote one of my educators "A mailing-list is a concept set up to
> help many instead of one: answers to questions put forward by one
> are received by the questioner *and* the 'lurkers' on the list.
> 'lurkers' that say 'hm...aha!' to themselves while reading the
> emails on the list, while they themselves might not yet have
> arrived at the question at hand or were not yet able to formulate
> it correctly/completely. Anyway, answers in a mailing-list are more
> help than privately emailed answers." so there you are..
> # end offtopic
>
> Reed,
>
> I am not specialized in tax- or general law outside holland.. But
> in holland, even if you run a one-man company, it would be wise to
> keep VERY strict track of personal income and expenses on the one
> hand and of business income and expenses on the other. In case of
> doubt (or no available 'accounting trail') the tax officers (IRS)
> will pick whatever you have to pay most taxes on as being what
> happened. Afterwards you are sure to have a heck of a time to proof
> anything different, chances of success there are only technical. I
> figure the IRS anywhere worldwide is likely to have a similar
> approach ;-((
>
> From an accounting standpoint the same applies, it is allways wise
> to first analyse the actual situation and afterwards put it in any
> form of accounting package / scheme. Thus the accounting scheme and
> the actual 'real life' world are at least compatible.
>
> PS: Mixing 'pleasure' (personal) with business (company) is not a
> good idea to begin with, and fiscally speaking it comes close to an
> open check to the IRS.. However unpleasant, it is best to keep TWO
> sets of books: one for the private household and one for the
> company. Any payments one way or the other between those two
> entities should be clearly discribed (advance on this years profit,
> paid cash advance regarding office supplies, etcetera) and if
> possible be backed up by at least a paper trail and receipts.
>
> Do not let it get you down, and if all else fails, call in a
> bookkeeper or accountant ;-)
>
> Paul.
>
> -----Original Message-----
> From: alta [mailto:sp...@al...]
> Sent: woensdag 27 februari 2002 18:25
> To: sql...@li...; Dr Default
> Subject: Re: Error when Adding a Service
>
>
>
> Paul ...
>
> Generally, I do not know exactly how much I will be paid for an
> article until I receive the check, because the amount depends upon
> the edited (final) size of the article and other factors.  In other
> words, I do not send an invoice -- I receive a check of surprise
> value, and want a simple way to book the income.  My company is a
> one-person company (me).  Originally, it seemed simple enough to
> treat the process as a service.  Your comments give me more to
> think about.  Thanks.
>
> ... Reed
>
> On Wednesday 27 February 2002 00:18, you wrote:
> > Reed,
> >
> > I guess you might want to look at your 'WRITING' as another kind
> > of 'ARTICLE'. Try to imagine selling an existing book that you
> > yourself do not have in stock yet to a customer.
> > You would have to first place an order for it, buy it and then
> > get it in stock before you could sell it to the customer, issue a
> > packing slip and get it out of the stock again.
> > The same goes for your article: IF it is owned by the company
> > because e.g. your contract says so, or you want the firm to have
> > the rights for it, in fact the company is buying it from you AS A
> > PERSON. YOU are the manufacurer of the 'goods'. SO the company
> > should place an order, receive the article and then sell it to
> > the highest bidder.. However, if you put it in the company like
> > this future rights (for reprints or movies or whatever) will also
> > be in the company. Hope this clarifies the 'There are no
> > purchases invoved in the writing I do'..
> >
> > If it is just to keep track of income, I suggest you think about
> > this very carefully and maybe take it up with a tax advisor or
> > bookkeeper. It could be simpler to use a SEPARATE BANK ACCOUNT
> > and book any income
> >
> > from this kind to a separate ledger 'Private income from writing'
> > and NOT send out bills on the companies behalf, for as I pointed
> > out, it seems to me the company is selling something they have
> > not yet purchased and thus have a negative stock of YOUR
> > articles.. The difference between COG (cost of goods) and income
> > stays in the company
> >
> > that way, not in your private account. IF ever a movie or book
> > should follow, all income is for the company as well, so take
> > that in mind when negotiating the price, or stipulate in the
> > order confirmation that this transaction only exists for ONE
> > publishment in XX magazine in year YY, and etcetera, you get the
> > idea..
> >
> > If the 'via company' route is (still) intended anyway, you should
> > at least make official arrangements as to the fees due to the
> > company for
> >
> > handling your affairs on the one hand (they would be a sort of
> > literary agent or publisher, so probably a percentage, 10 to 15%
> > I guess), and as to the amounts you AS A PERSON are to receive on
> > the other hand.
> >
> > Once you have this clear in your mind, IF the company stays
> > involved, the costs would be sale price minus xx%, the income
> > would be sale price 100%, leaving YOU as a person in the form of
> > A/P for the (100 - xx) part.
> >
> > Hope this helps, somehow I got the impression you are trying to
> > solve a problem you might not want to or need to have..
> >
> > Paul
> >
> > -----Original Message-----
> > From: sql...@li...
> > [mailto:sql...@li...] On Behalf
> > Of alta Sent: dinsdag 26 februari 2002 6:13
> > To: Dieter Simader; sql...@li...
> > Subject: Re: Error when Adding a Service
> >
> >
> >
> > Dieter ...
> >
> > I think I should explain what I am doing in more detail.  Mostly,
> > I sell books.  All that is working fine.  Occasionally, I write
> > articles
> >
> > for magazines.  When they pay me, I presume that I should enter
> > dollars received in a "service" account.  So I tried to setup a
> > service called "Writing" which is tied to the existing
> > "4310--Writing account.  (The Add Service form caused the error.)
> >
> > Upon further investigation, I find that the "Writing" service WAS
> > added.  (Actually 3 were added because I tried 3 times.)  Each
> > time I attempted to add "Writing" a server error displayed, and
> > the error_log
> >
> > showed:
> >
> > [error] [client 127.0.0.1] Premature end of script headers:
> > /usr/local/sql-ledger/ic.pl
> >
> > So, I guess it worked, after all.  However, the reason for the
> > error is still a curiosity.
> >
> > Answers to your questions follow:
> > > You don't have an account number for purchases.
> >
> > I puzzling as to why having an account number for purchases would
> > have anything to do with a "Writing" service that I provide.  For
> > the "Writing" service, there are no purchases needed, but I guess
> > a default needs to be selected in the Add Service form.  I
> > selected "5010--Purchases", which is flagged with IC_expense.
> >
> > > check that you have at least one account flagged with
> > > IC_expense. "Setup" -> "List Accounts"
> >
> > The following accounts are flagged with IC_Expense:
> >      5010--Purchases
> >      5100--Freight
> >      5781--Internet
> >
> > > Also go into your preferences and see which account comes up
> > > for the 'Expense Account'
> >
> > From my preferences, Expense Account: 5040--COGS / Books
> >
> > > On Mon, 25 Feb 2002, alta wrote:
> > > > I get the following error posted to the server log when I
> > > > attempt to
> > > >
> > > > add a service:
> > > >
> > > > [error] [client 127.0.0.1] Premature end of script headers:
> > > > /usr/local/sql-ledger/ic.pl
> > > >
> > > > Has anyone else seen this problem?
> > > >
> > > > The details...
> > > >
> > > > I am attempting to add a service called "Writing":
> > > >
> > > > Number: Writing
> > > > Description: Writing
> > > > Unit of measure: hr
> > > > List Price: 0
> > > > Sell Price: 0
> > > > Income: 4310--Writing
> > > > Expense--Purchases
> > > > 2310--GST: not checked
> > > > 2311--PST: not checked
> > > >
> > > > My setup for "4310--Writing":
> > > >
> > > > Account Number: 4310
> > > > Description: Writing
> > > > Account Type: Income, Account
> > > > Is this a summary account to record: no, no, no
> > > > Include in drop-down lists:
> > > >   Receivables: Income
> > > >   Service Items: Income
> > > > Include this account...as taxable? no
> > > >
> > > >
> > > > Your help appreciated ... Reed

-- 
Reed White  -  ALTA RESEARCH  -  www.alta-research.com
Phone: 877-360-2582  -  Email: al...@al...