Liabilities Not Acting Correctly
When I enter our employees' paychecks, they are split transactions. For example:
Gross Wages $100.00 (Expense)
Fed Taxes -20.00 (Liability)
State Taxes -5.00 (Liability)
Health Plan -15.00 (Liabiilty)
To get Net Wages of $60.00, which is the check amount.
Then, when I go to pay the taxes or health plan premiums, I write the check from the bank account and the Account is the appropriate Liability.
However, MD doesn't show the money moving correctly. It shows the Liability increase (the deduction from the employee's check) as a decrease, and shows the decrease (the payment to the tax authority) as an increase. It balances out to zero, but the point is that it's recording things backwards.
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1 Posted by Ben Spencer on 18 Jan, 2010 04:39 PM
I created a dummy chart of accounts to see if I could reproduce what you are describing. In this test I create checking account with a balance of $10000, a gross wages expense account and the liability accounts you mention.
See the first attached screenshot for the split I entered.
And then see the second screenshot for the balances on the home page of the respective accounts.
Moneydance represents money owed on a liability account as a negative value.
And so we see the $60 come out of the checking account and the 3 liability accounts with their respective negative values. If you look at the networth on the home page you can see that it has decreased by $100. Which I believe is correct.
Is this not what you are getting? Perhaps I am misunderstanding the situation you are describing.
Angie Rauscher closed this discussion on 24 Jul, 2011 07:17 PM.