Date  	Tue, 22 Apr 2008 3:11 PM  ( 50 mins 15 secs ago ) 	Text view
Print view
Raw view
From  	"Raymond Hettinger" <python@rcn.com>
To  	"Martin Blais" <blais@furius.ca>
Subject  	Accounting Package 	Show full header
Nice little package.

I look at your question list.  Here's a few thoughts.

Usually, when there is a choice of several ways to record things (trade date vs settlement date, asset vs expense, cost basis vs
mark-to-market), the right answer depends on who is using the books and for what purpose.  Traders usually think in terms of trade
dates because that is when the decision is made and the asset valuation risk begins.  Accountants (including taxing authorities)
usually look to settlement dates because that is when the cash moves.

Often you can meet multiple needs by keeping multiple accounts for a single asset and then looking at either the individual accounts
or the sum depending on what you're trying to analyze

     my_house:at_cost    200,000
     my_house_mkt_adj     10,000

     my_car:at_cost           30,000
     my_car:depreciation  <4,500>

For taxes, you record a liability and expense at the time the obligation is incurred.  When you pay them, reduce the liability and
cash:

   #2/20/2008
   Tax Expense      1,000 Dr
   Tax Payable       1,000 Cr

   #1/15/2009
   Tax Payable       8,000 Dr
   Tax Expense      8,000 Cr

For multiple currencies, there simplest solution is to record all transactions in their native currency.  Then add a dynamic
translation to USD or CAD using the current exchange rate before summing the trial balance.  The balancing entry goes to an expense
for currency gains and losses.  Given:

    Cash:USD  1000  Dr
    Cash:Euro   4000  Dr
    Equity:USD  7,500 Cr

The dynamic trial balance with rate of (1.5 to 1) is:

    Cash:USD                     1000  Dr
    Cash:Euro_Converted    6000  Dr
    Equity:USD                    7,500 Cr
    CurrencyLosses                500 Dr


Rather than making every trading entry or food purchase in your books, the common approach is to book summary totals from a
single-entry subledger:

  Burger King      10
  McDonalds       20
  Taco Bell          30
  More junk         40
  More tacos        50
  Total                150

  FoodExpense   150 Dr
  Cash                 150 Cr

FWIW, microsoft has a new accounting product that automatically books entries from PayPal and Ebay transactions.  That feature
should not be hard to replicate.


Raymond

Inbox: 1 of 6	Go to:   <     Mailbox     >  	Delete and:   <     Mailbox     >  	
Need help? Start here. Read the FAQ. Talk to other users.
