I'm using gnucash to record my finances (but it should apply to any double entry accounting system). I wonder how should I record transactions for medical expenses which I can reimburse from HSA (and I will probably in about 40 years or so).
I've thought about following structure - in this way the reimbursement is liability of HSA account(s) to me and I can attach scan of receipt to the transaction.
Account structure:
- Assets:Current Assets:Checking account
- Assets:HSA:Account1
- Assets:HSA:Account1:Cash
- Assets:HSA:Reimbursements
- Assets:Reimbursements:HSA
- Expenses:Medical
- Liabilities:Credit card
Transaction:
Account Db Cr
Expenses:Medical $X
Liabilities:Credit card $X
Assets:HSA:Reimbursements $X
Assets:Reimbursements:HSA $X
Reimbursement:
Account Db Cr
Assets:Current Assets:Checking account $X
Assets:HSA:Account1:Cash $X
Assets:HSA:Reimbursements $X
Assets:Reimbursements:HSA $X
Is there a better way? I have a mixed feeling about putting 'liability' in assets category (asset with negative value) but on the other hand it wouldn't belong to liabilities as it's not my liability. On the other hand it allows to both check the current assets which can be liquidated and current status of account for reconciliation (Assets:HSA:Account1).
Assets:HSA:Reimbursements
andAssets:Reimbursements:HSA
should not both exist! Also, your Assets look the same after incurring medical expenses, and your Liabilities went up. It should be that your Liabilities go up (because of the credit card) and the asset goes up (because you have a reimbursable expense). I have no alternative suggestion, though. I'll try to remember to come back if I come up with anything. ..wait maybe I have something...answering now. – lmat - Reinstate Monica Oct 10 '18 at 23:23