GL Accounts in PCLAW and Assets

I need to give a special shoutout to Jasper Shiu from LexisNexis PCLAW for clearing this up some GL Accounting for me.

If you are purchasing office equipement, or computer equipment, you  might not want to record it under expenses but under an asset account which would be 1500-1999.  This would help your CPA with depriciation at the end of the year.  So if you went to OfficeDepot and bought a new desk, when you wrote the check you would use the GL account assoicated with Office Furniture.

Now here is another GL PCLAW Question I had.  Our Consulting Company has a situation where we provide online backups to our customers.  I wanted to be able to track how much we were spending on Online Backups vs. How Much we were getting paid.  Basically I wanted to be able to run an income statement and see the difference between the two.

Now, there are two ways of doing this and in each way I need to create an income and an expense account.

When a client pays me for this backup service I would always record it to the income account.

I would use the expense account GL when I was doing expense recoveries for the backup program.  I would also need to create an expense account GL to track the firm backup expense, (When I write the huge check for the Backup Service.  To make matters easier for me and my clients, I would create an explanation code and then link it to the GL Account.

When I am doing the expense recovery, I would click the correct explenation code which in turn would click the correct GL.  This would credit the expense account and debit 5010 (Client Disbursement Recovery Account)  When I receive a payment from this client, a debit to the cash account an a credit to the 5010 account will be made.

When it is time to pay the backup expense, I would use Check General and choose the Firm Backup Expense GL.  When the check is saved, it will credit the bank and debit the expense account.