RE: Error when Adding a Service

[Dr D. <drd...@ho...>]

In that case I suggest you can either book it as negative advertising
costs, or open a G/L for 'Various Income' 
And credit that directly from the cheque or the bankstatement. That way
you keep the sales revenue and the 'specials' apart and keep the sales
income versus COG 'clean'. Let me know when Hollywood buys the script
though, you might want to reconsider at that time ;-)

-----Original Message-----
From: alta [mailto:al...@al...] 
Sent: donderdag 28 februari 2002 21:14
To: Dr Default; sql...@li...
Subject: Re: Error when Adding a Service



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...