2012-05-03 Sir Moneybags

            ;Entity: Sir-Moneybags

            ;Invoice: accounts/documentation/org/invoices/2012-05-30_moneybags-invoice_as-sent.txt

        Accrued:Accounts Receivable:Conservancy  $100,000.00

        Income:Main Org:Donations               $-100,000.00

            ;IncomeType: Donations

The portion of the transaction that credits the `Income:Main Org:Donations`

has three tags: [`Entity`](#entity-tag), [`Invoice`](#invoice-tag) and

[`IncomeType`](#income-type).  The `Entity` and `Invoice` tags, since they're

listed at the top of the transaction, propagate through and apply to both

sides.  But, the `IncomeType` tag, which has no meaning for `Accrued:`

the transaction.

Below you'll find detailed descriptions of all the possible tags that are

used in this system.  The actual declarations and enforcement of rules of

these tags can be found in the file `accounts/config/config-tags.ledger` in

this project.

### Documentation Tags

Documentation tags are tags that link to other backup documents that provide

evidence and details that justify a particular ledger entry.  The value of

* written organizational policies about the expense.

* just about anything that is clearly not an [invoice](#invoice-tag) nor a

  [receipt](#receipt-tag), but definitely is valid backup documentation for

  the transaction.

#### TaxReporting Tag

The `TaxReporting` tag is an optional tag for `Assets` accounts that debit to

the account.

tag.  The TaxReporting refers to a document that verifies the choice for the

`TaxImplication` tag.  For example, for individual contractors in the USA, a

`TaxImplication` of `1099` would be well served by a `TaxReporting` that

links to a [W-9](https://www.irs.gov/pub/irs-pdf/fw9.pdf) for the individual

being paid.  For a individual foreign contractor, the `TaxReporting` might

link to a

[W8-BEN](https://www.irs.gov/uac/form-w-8ben-certificate-of-foreign-status-of-beneficial-owner-for-united-states-tax-withholding)

for the payee.

### Information Tags

In contrast to documentation tags, information tags can more traditionally be

* `1099`, indicating the amount paid requires issuance of a USA Federal Form

  1099 for the `Entity` involved.

* `W2`, indicating the amount paid will be part of a USA Federal income, as

  reported on Form W2 report for the `Entity` involved.

* `Retirement-Pretax`, indicating the amount paid was made to a W2 employee

  as part of pre-tax retirement plan, such as a 401(k) or 403(b) plan.

* `Accountant-Advises-No-1099`, indicating that the circumstances and rules

  seem to indicate a USA Federal Form 1099 should be issued for the `Entity`

* `Bank-Transfer`, indicating that the amount is a transfer between two

  banking accounts under the control of the NPO itself.

* `Foreign-Individual-Contractor`, indicating that the NPO has established

  that the `Entity` is a contractor residing outside the USA who is not a USA

  citizen and does not for any reason pay taxes in the USA.

* `Foreign-Corporation`, indicating that the NPO has established

  that the `Entity` is a corporation outside the USA.

* `USA-Corporation`, indicating that the NPO has established that the

  does not need an `Invoice:`, `Receipt`, nor a `Statement` tag if the

  [payee was never charged](#never-charged-payee).)

* A [`Program:`](#program-tag) tag.

Expense accounts can have the following optional tag:

* A [`GrantLocation:`](#grantlocation-tag) tag.

#### NEVER CHARGED Payee

The only exception to the standard tagging requirement is when the payee has

following scenario:

Suppose an expense was expected — for example, a situation where you

gave a credit card number to charge something and the charge never came

through — but it turns out the charge never happened.

The recommended way to resolve this problem in the system is to just delete

the entry entirely from the Ledger file, and allow the VCS to log the fact

that the charge was expected, but the vendor never billed the credit card.

The reason the `NEVER CHARGED` payee text was added was to handle the

situation where the books included this charge, but the books were already

closed for the financial period (e.g., the books had already been audited).

Changing the payee was a method for documenting the expense.  You might use

it like this:

    2011/05/28 My Bad Billing Hosting - NEVER CHARGED

        Liabilities:Credit Card:Visa            $-100.00

        Expenses:Conservancy:Hosting             $100.00

    2012/01/01 My Bad Billing Hosting - REVERSAL - NEVER CHARGED

        Liabilities:Credit Card:Visa             $100.00

        Expenses:Conservancy:Hosting            $-100.00

**until** you had real proof via an Invoice, Receipt or Statement that showed

the Expense did/should occur.  This use of `NEVER CHARGED` in the payee is

thus deprecated.

#### Income Account Documentation

Each `Income:` account must have the following tags:

* One of: [`Invoice:`](#invoice-tag),

  [`PurchaseOrder:`](#purchase-order-tag),

  [`Statement:`](#statement-tag), or

  [`Contract`](#contract-tag).  Exceptions to this requirement are as follows: