Hello again ACCOUNTS advisors. Sorry to have so many blog posts in a row!
I’ve been rethinking some warnings in the program against saving transactions that involve both an asset account (such as a bank) and a fund (equity) account. They warn that this is probably wrong, because you should be using an income or expense account that is linked to the fund account instead.
The more I think about it, the more I can only think of two situations where you would reasonably actually post a transaction directly against a fund account.
The first is to enter an opening balances transaction, involving potentially all accounts, which can be done most easily with the new Actions -> Opening Balances menu option.
The second is an inter-fund transfer, such as transferring money from the General Fund to the Building Fund.
I just can’t think of any other valid transaction that directly posts to a fund account. So I’m inclined to disallow anything else (except possibly in a journal entry, but even then, with a warning!).
Please let me know if you agree, or if you disagree, describe the transaction(s) that you believe are valid.