6.4. Putting It All Together
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## 6.4. Putting It All Together

Chapter 5 looked at bank and cash account transactions. In this section, we will add some credit card transactions and reconcile the credit card account. Go ahead and open your gcashdata file saved in the last chapter. As a review, your chart of accounts should now look like this: FIXME:insert chartaccts3.png

This image shows Entering Net Pay.

1. Open the Credit Card account register. To start tracking your credit card account, you first need an opening balance. For this example, assume your ending balance from your last Credit Card statement was $1000. Enter an Opening Balance transaction with Transfer account of Opening Balances and Charge amount of $1000. The transaction should look like this: FIXME:insert openbal.png

   This image shows Entering Net Pay.

2. Now suppose you have several receipts to enter in your account. Enter the following receipts into the register. Some of the suggested transfer accounts may need to be created, and GnuCash will prompt you through the setup dialog when you try to enter these.

   Table 6.1. Credit Card Example

   2/1/01 | Greasy Spoon Cafe | $25 | (transfer account should be Dining, type expense)
   2/3/01 | Faux Pas Fashions | $100 | (transfer account Clothes, type expense)
   2/15/01 | Premium Gasoline | $25 | (transfer account Fuel, type expense)
   2/20/01 | Groceries R Us | $125 | (split between accounts Groceries ($85) and Household ($40))
   2/25/01 | CheapMart | $60 | (transfer account Household)

   Your register should now look like this: FIXME:insert ex_purch.png

   This image shows Entering Net Pay.

3. Now suppose you return the clothes you bought on 2/3 from Faux Pas Fashions. Enter a transaction for the credit card refund for the full $100 amount. Remember to use the same transfer account you used for the original purchase, and enter the amount under the Payment column. GnuCash will automatically complete the name and transfer account for you, but it will also automatically enter the $100 in the Charge column. You will need to reenter the amount in the Payment column. The transaction looks like this: FIXME:insert ex_refund.png

   This image shows Entering Net Pay.

4. When you receive the monthly statement, it shows a finance charge of $20. Enter that charge in the register, with a transfer account of Finance Charge (type expense). The transaction looks like this: FIXME:insert ex_fincharge.png

   This image shows Entering Net Pay.

5. Now reconcile the account to this statement:

   Table 6.2. Statement Balance Example

   Previous Balance: | 1000
   +Purchases | 335
   - Payments | -300
   - Refunds | -100
   +Fin.Charge | 20
   New Balance | 955

   Table 6.3. Statement Transactions Example

   Date | Ref. Number | Activity | Amount
   2/1/01 | xxx0012 | Greasy Spoon Cafe | 25
   2/3/01 | 4jg78sf1 | Faux Pas Fashions | 100
   2/5/01 | Payment received | -300
   2/15/01 | asdf4289 | Premium Gasoline | 25
   2/20/01 | jklt5748f | Groceries R Us | 125
   2/25/01 | 4578dkjg | CheapMart | 60
   2/25/01 | 2347891g | Faux Pas Fashions | -100
   2/28/01 | Finance Charge | 20

   Start the Reconcile dialog for this account. You will notice that the starting balance shows 0, not 1000. This is because the opening balance transaction has not yet been reconciled. GnuCash should show 1255 as the ending balance, but your statement shows 955. Enter 955 as the ending balance and click OK. You should now get a reconcile window that looks like this:

   Select each item in the reconcile window that matches an item on the sample statement. When you have finished checking off items, you should have a difference of -$300.

   Check over the sample statement to see which transaction is missing. You should find a payment for $300 that was not entered in the register - that is the difference amount. In the Reconcile window, click the New button on the tool bar. This brings you to the account register, where you can now enter a transaction for that $300 payment. Be sure to enter the correct date, and use Checking as the transfer account. The transaction should look like this: FIXME:insert ex_pmt.png

   This image shows Entering Net Pay.

   Record the transaction, then return to the Reconcile window. You should see the payment transaction listed in the Funds In panel. Select it to check it off. Now the difference should be 0, so click the Finish button to complete the reconcile process.

6. You should now see the Transfer dialog with an amount of $955, the ending balance. You decide to pay $300 again this month, so change the amount to $300. Enter a check number for the payment in the Num field, and enter a description. Your Transfer From account should be Checking, and your Transfer To account should be Credit Card. The Transfer dialog should look like this: FIXME:insert ex_transf.png

   This image shows Entering Net Pay.

   Click OK to accept the transfer. Your credit card account should now show the new transaction. All of the transactions you reconciled should now show up with y in the R column. The only unreconciled transaction should be the newest payment transaction.

If you haven't already done so, save your file. We will be using it again in the next chapter, which addresses investments. Your main window chart of accounts should now look like this: FIXME:insert chartaccts4.png

This image shows Entering Net Pay.

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6.3. Entering Payments | Up | Chapter 7. Investments