4.4. Putting It All Together

Start by opening your gcashdata file that you last worked on in Chapter 3. As a refresher, your main window should look something like this: FIXME:This section needs redoing

The dialog for a New Account

This image shows the New Account Dialog.

  1. Open the Checking Account register. Select View -> Style from the menu and check to make sure you are in Basic Ledger style. You will view your transactions in the other modes later, but for now let's enter a basic transaction using the basic default style.

  2. From the Checking Account register window, enter a basic transaction to deposit your net pay of $800 into your checking account. (Remember, basic transactions transfer money from a source account to a destination account. Your source in this case is the Salary account, and your destination is the Checking Account.) The transaction should look like this:

    Entering a Paycheck transaction

    This image shows Entering a Paycheck transaction.

    Record the transaction.

  3. Now duplicate this transaction using the Duplicate button in the tool bar. Enter the transaction date a week out in the future, and notice the blue line separator that GnuCash uses to separate future transactions from current ones:

    The duplicated transaction

    This image shows the duplicated transaction.

  4. Edit the transaction you just created so that it now shows gross salary and paycheck deductions for federal tax and FICA. Since this is now going to be a multi-split transaction, click the Split button to enter the remaining splits. (Remember, in a multi-split transaction, you can have several source accounts and several destination accounts, but total debits must equal total credits for the transaction to balance. In this case, your source account is Salary, but you now have 3 destination accounts: Checking Account, FedTax, and FICA. You debit destination accounts and credit source accounts.) Edit the transaction so that it shows:

    Table 4.1. Split Example

    DebitChecking800
    DebitFedTax200
    DebitFICA50
    CreditSalary1050

    Note

    You will have to create expense type accounts for FedTax and FICA, since these accounts don't exist in your list, but you can easily do this by typing the account name in the split line Account field. GnuCash will bring up the Account Information dialog and you can fill in the account details.

    Here's what the transaction should look like:

    The split transaction

    This image shows the split transaction.

    Press Enter to record the transaction.

  5. Enter another paycheck with a date set two weeks in the future. This time, use QuickFill to enter your transaction. On a blank transaction line, select the date from the drop-down calendar. In the Description field, type "P" and watch GnuCash fill in the rest of the description for you. Tab to the next field, and note that GnuCash inserts "-- Split Transaction --" in the Transfer field. Tab again and note that GnuCash inserts the same deposit amount as the last transaction. Record the transaction.

  6. Expand the transaction you just entered so that you can see the splits. This time, instead of clicking the Split button in the tool bar, select the Auto-Split Ledger style from the Register|Style menu. Move around the register and notice the difference between this style and the Basic Ledger style. Now select the Transaction Journal style from the Register|Style menu, and notice the differences there.

  7. Let's look at another account register to see how this last paycheck transaction affected it. In the expanded transaction, select the Salary account split, and click the Jump button in the tool bar. You should now see the same transaction in the Salary account register:

    The split transaction in the Salary Account

    This image shows the split transaction in the Salary Account.

    Notice the transaction line is different, but all of the split lines are exactly the same. You are now looking at this transaction in the Salary account, so the transaction line shows a summary of the effect on this account.

  8. You now know all you need to know to enter your transactions in GnuCash. Return to the main window by closing the register windows, and note that some of your accounts now have balances. Your chart of accounts should now look like this: FIXME:insert chartaccts2.png

    The dialog for a New Account

    This image shows the New Account Dialog.

Be sure to save your gcashdata file for future use. The next five chapters address specific examples of transactions you may want to enter, and they continue with practice exercises at the end of each chapter.