I bought a laptop for $1000 online and paid by credit card. The payment plan is 10-month payment with 0% interest rate. So it charges $100 to my credit card each month. In this case, how do I do it on GnuCash? Split transaction has to be happen on the same day, where I need the $100 credit card bill split to 10 months.
The initial purchase of the laptop represents a liability to make a series of repayments in the future. You should therefore credit your
Liabilities:Laptop Purchase account by $1000 and debit your
Assets:Laptop account by $1000 when you take delivery of the laptop.
(Note: depending upon the accounting policies in place in your home or business, it may be legitimate to treat the laptop as a one-off expense instead of an asset with lasting value.)
Each month when the financing arrangement charges $100 to your credit card, you should show a credit of $100 to
Liabilities:Credit Card and a debit of $100 to the
Liabilities:Laptop Purchase account. As a similar transaction will occur 10 months in a row, there's good reason to set that up as a Scheduled Transaction.
Your monthly credit card bill will include the $100 charge along with all of your other credit purchases. You pay off some or all of this bill as normal.