Bookkeepers question


J

Jaap

How is the best way to handle loans you give to others. I currently use a
Debtor account (and a Creditor account for amounts I owe other people) where
I keep track on what I spend for other people and want the amount back.
Sometimes I get paid back in cash, sometimes through one of my bank account.
What is the best way to set this mechanism up in Money?
 
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G

Glyn Simpson, MVP

Use an asset account, unless you're charging interest and want Money work to
it out for you.

When you lend money, transfer the amount from the account you give the
debtor the money from to the asset account. When the person gives you the
money back, do a transfer the other way.

When you're not owed, the asset account = 0. When you are, it equals the
amount you are owed. The net worth in money should therefore be unchanged.
 
C

Cal Learner

How is the best way to handle loans you give to others. I currently use a
Debtor account (and a Creditor account for amounts I owe other people) where
I keep track on what I spend for other people and want the amount back.
Sometimes I get paid back in cash, sometimes through one of my bank account.
What is the best way to set this mechanism up in Money?
I set up a loan account. Money asks if you are borrowing or lending.

From your checking account as a deposit, I would enter category Loan
Payment: Mary's Loan.

For cash payments, you can create a "Cash or other" account. Enter
the cash into the Receive column, and make the category Loan
Payment: Mary's Loan.

You can make a copy of your Money file to experiment with.
 
J

Jaap

I currently use a "cash or other" account and Glyn Simpson suggested to make
it an asset account. I will try that first, as when setting up a loan
account after the question "borrowing or lending" you have to answer the
"payee" question and that varies (I mean I cannot allocate to a single
payee), so maybe Glyn's suggestion is a better solution for this. Thanks for
your help anyway.
 
J

Jaap

Glyn Simpson said:
Use an asset account, unless you're charging interest and want Money work to
it out for you.
Thanks. I'll give this a try, however I noticed that loans and assets are
not included in the cashflow calculation.
 
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A

abarker46

-----Original Message-----
How is the best way to handle loans you give to others. I currently use a
Debtor account (and a Creditor account for amounts I owe other people) where
I keep track on what I spend for other people and want the amount back.
Sometimes I get paid back in cash, sometimes through one of my bank account.
What is the best way to set this mechanism up in Money?


.I assume you have a cash account set up as well as bank
accounts? You are right on the debtors accounts, then
when you receive payment it is a transfer from the debtor
to cash in the same way as if a payment was made from the
debtor to a bank account!
 
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