How to report loan payment as loan payment and not separate P&I payments?


B

BC Berry

In Q2003, is there any way to generate a report showing a loan payment
as one transaction and not as separate principle/interest/escrow
transactions. Most of the time, I could care less how it is split -
just that I paid $X.XX on a loan.
 
R

R. C. White

Hi, BC.

Don't make the mistake that so many folks make of confusing cash flow with
income. :>(

If you borrow money, you have cash flowing in, but it sure isn't income.
And when you make the payment, cash flows out, but only the interest portion
is expense.

Budgets are intended to deal with income and expenses. They are not
intended to show cash flow.

I've not tried to set up either a cash flow forecast or a budget in Quicken,
so I don't know how Quicken handles it. My guess is that you would choose
to show "Transfers", rather than just income and expenses. The principal
portion of your monthly payment is not an expense; it is a transfer from
cash to loan payable. If your payment also includes amounts for taxes and
insurance, those amounts also are not expenses when you pay in to the
lender's impound account. That money is still yours - the lender is just
holding it for you and will pay your expense for you when it comes due. So,
these portions of your monthly payment are also transfers, from your
checking account to your impound account with the lender.

If you are making a "budget", then only the interest portion should be shown
as an expense. If you are making a cash flow forecast, then the entire PI
or PITI payment is an outflow and reduces your bank balance. My guess is
that Excel would be a better tool than Quicken for what you need to show.

Even many divorce lawyers (and some judges) don't understand this basic
distinction between cash flow and income, so you may have to explain it to
them. ;>{ Or get your CPA to explain it.

RC
 
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B

BC Berry

Hi, BC.

Don't make the mistake that so many folks make of confusing cash flow with
income. :>(

If you borrow money, you have cash flowing in, but it sure isn't income.
And when you make the payment, cash flows out, but only the interest portion
is expense.

Budgets are intended to deal with income and expenses. They are not
intended to show cash flow.

I've not tried to set up either a cash flow forecast or a budget in Quicken,
so I don't know how Quicken handles it. My guess is that you would choose
to show "Transfers", rather than just income and expenses. The principal
portion of your monthly payment is not an expense; it is a transfer from
cash to loan payable. If your payment also includes amounts for taxes and
insurance, those amounts also are not expenses when you pay in to the
lender's impound account. That money is still yours - the lender is just
holding it for you and will pay your expense for you when it comes due. So,
these portions of your monthly payment are also transfers, from your
checking account to your impound account with the lender.

If you are making a "budget", then only the interest portion should be shown
as an expense. If you are making a cash flow forecast, then the entire PI
or PITI payment is an outflow and reduces your bank balance. My guess is
that Excel would be a better tool than Quicken for what you need to show.

Even many divorce lawyers (and some judges) don't understand this basic
distinction between cash flow and income, so you may have to explain it to
them. ;>{ Or get your CPA to explain it.

RC
True, I am not a CPA so I probably used the wrong terminology.
However, I do know what I want.

I am collecting data for a financial affidavit which has blanks for
mortgage, car loans, boat loans, etc. as single line entries - not
split for PI/PITI and apparently Quicken is not capable of generating
a single report with this data. Quicken - at least Quicken basic -
DOES have a cash flow report in its report menu but unless I just
haven't found the right combination of settings, it too is locked into
categories so it too splits the amounts. It just seems a waste to have
that info available but not be able to report it.

Whatever the formal definition of a budget, income/expense, cash flow,
when I do family budgeting, all I am interested in is planning for
checks/cash coming in, checks/cash going out, and how much of an
overage/shortage there is - not what portion of my check to the
mortgage company goes to loan repayment what portion goes to interest,
etc. If that is the definition of a cash flow forecast, I guess that's
why Quicken's budget function doesn't give me what I want.

Hmmm - help file for Quicken shows cash flow forecasts require more
than the Q2003 basic I have so I guess I can forget that without
paying for an upgrade.
 
R

Rick Hess

BC Berry said:
but unless I just
haven't found the right combination of settings, it too is locked into
categories so it too splits the amounts.
In the "Display" tab of the "Customize" window of your report, isn't there a
box to select or de-select "Split
transaction detail"?


Rick Hess
New Orleans
 
B

BC Berry

In the "Display" tab of the "Customize" window of your report, isn't there a
box to select or de-select "Split
transaction detail"?


Rick Hess
New Orleans
No. Maybe that's a feature not available in the basic version.
 
J

John Pollard

BC said:
No. Maybe that's a feature not available in the basic version.
In deluxe, the default is to not show splits; you have to check the
box to see the splits.
 
L

Lee Most

Perhaps, if the basic version allows it, you could create a class
called something like "PITI" and add it to the category of each of
your payments. One way I do that is to use Find All (in the Find
dialog box) and double-click on each entry. After I edit the entry,
Quicken updates the results of the find so I can see what to change
next. It takes some time, but then you could do a report just on the
PITI class.

Of course, another way is to export the report to a text file and edit
it in Word or something.

Lee
 
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B

BC Berry

Perhaps, if the basic version allows it, you could create a class
called something like "PITI" and add it to the category of each of
your payments. One way I do that is to use Find All (in the Find
dialog box) and double-click on each entry. After I edit the entry,
Quicken updates the results of the find so I can see what to change
next. It takes some time, but then you could do a report just on the
PITI class.

Of course, another way is to export the report to a text file and edit
it in Word or something.

Lee
Thanks for the advice.

What I ended up doing was creating an interest subcategory for each
loan and breaking out individual interest amounts in the report. It's
a PITA but it let me collect the data I needed. It's a report I should
not have to generate very often so I can stand a little 'hand jive' to
add the numbers to transfer them to the forms.

It just seems strange a program for home finance can't generate a
basic "where my money comes from/where my checks go" report.
 

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