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 transaction is not split. You transferred $1000 from your credit card to your fixed asset in one go, nothing split there. Repayment of your credit card liability is a series of entirely separate and unrelated transactions between your checking account and your credit card account.


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.

  • 1
    That's the correct way to handle this situation, but don't forget to depreciate the laptop in 4 years or so if considering it as an asset. There are relatively few assets that should not be depreciated. A laptop certainly needs quick depreciation. Some people nowadays should think a house should not be depreciated. I disagree...
    – juhist
    Apr 26 '20 at 9:18

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