On Apr 3, 1:30*am, Geri <G...[at]discussions.microsoft.com> wrote:
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Wow, Geri! Thanks a lot. You have given me more than anyone had
done so far. Thanks a lot. Let me follow the steps and see how it
produces. I am sure it will. Thanks once again. Will give you my say
when I have completed this (I'll have to wait till the month end).

Regards
Bharathan

Okay, now that I've had ample amounts of coffee and my work day is closing, I
decided to outline my process to see if any of this makes sense to you.
Basically I'm doing double entry accounting. No duplication of income to be
found. Here it is:

Create a subcategory for Wages&Salary called earned income

Go to the bank account where you receive payments for your invoice

Withdraw (don't use transfer) the amount you want to go to earned income.

Example: Payee = Your Name
Category = Paycheck (you'll be prompted to fill out the paycheck
info) or use another expense category
memo = earned income (mostly for your records)

This will create a withdrawal without crediting your personal account.

Go to your personal account and create a deposit from the Payee (your bank
name)

Example: From = Your Bank Name you're moving funds from
Category = earned income

You've now created a double entry that will debit your transferring account
correctly and created a deposit that will display in the budget as income.

"Bharathan" wrote:

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OOPS... sorry. I meant to say that the earned income is a category NOT an
account. The transfer goes into personal banking account.

"Geri" wrote:

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I'll try to explain how I do it, but I am no accountant that's for sure. And
I use my QuickBooks information when tax time comes around since I know that
it's accurate. That being said...

When I receive payments for my invoices (accounts receivable) the payment
amount is added to my business checking and recorded as business income. At
the end of the month, from business checking, I create a transfer of funds to
my earned income account. I transfer just what I decide I need to live on; a
paycheck (wages & salary). I use a category simply named add funds as other
income for the transfer. I exclude the add funds category from all business
reports. You really can get creative. I just use this method in order to use
the budget properly.

I'm sure someone out there has a better way. Like setting yourself up as a
payee? Anyway, this is just the process that I've played with. I've probably
left out a few steps. Whatever you setup you can delete so I encourage
experimentation.

I hope I haven't further confused things.

"Bharathan" wrote:

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On Apr 2, 6:30*pm, Geri <G...[at]discussions.microsoft.com> wrote:
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Hi Geri,

Thanks for the response. If I create a paycheck and pay myself, will
the reports not show double income amounts, one from Business and
another from paycheck? Can you explain more on the 'retained' income
account. I am probably new to that term.

Thanks once again.

I use Money Plus Home and Business and I have yet to find anything that will
link your business income (automatically) to the Budget and Spending Tracker.
Your idea of creating a paycheck does work - I've done that. I categorized my
retained earnings (created a monthly transfer from my business earnings and
setup a retained income account) as wages and income and it shows in the
tracker. However, for business planning and other more robust features I use
QuickBooks Pro. I prefer Money being a sole proprietor, but there are things
the program just doesn't provide.

"Bharathan" wrote:

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Hi,

I receive my income by raising an invoice through my business. Is
there a way to include the income that is classified under business
category in the budget?

If not, can you suggest an alternative approach to this? Do I have to
setup a fictitious paycheck for me to pay for myself and then include
the paycheck in the budget?

Please advise.

Regards
Bharathan