Mortgage or loan proceeds?


D

Danno

I am setting up a mortgage as a new liability account, but I don't find any
matching entry for the proceeds from the loan when I do. In Money, where
has the money gone or how do I set up an account called 'house'? Can the
loan proceeds go into a checking account? I know how to distribute funds
from there.

Help is not much use to try to tie the new asset with the new liability.

Thanks, Danno
 
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D

Dick Watson

Money is very unhelpful as regards accounting for the cash flow at
origination of a loan. There is a workaround--see the last two paragraphs of
http://umpmfaq.info/faqdb.php?q=86. I created an Income Category -- Other
Income : Loan Proceeds Received. And I put a memo in the transaction
pointing to the Loan Account.
 
T

Taylor

Danno said:
I am setting up a mortgage as a new liability account, but I don't find any
matching entry for the proceeds from the loan when I do. In Money, where
has the money gone or how do I set up an account called 'house'? Can the
loan proceeds go into a checking account? I know how to distribute funds
from there.

Help is not much use to try to tie the new asset with the new liability.

Thanks, Danno
The loan proceeds go to your checking account. The first line on the loan
account should be a charge which is equeal to the deposit into checking.
Set up the category as a Transfer to Checking.
 
D

Dick Watson

Disclaimer 1: I haven't tried this in a version or two. They may have snuck a
change in on me.

Disclaimer 2: Applies to M04 and previous or M05 and up with advanced
register and not to Essentials.

The problem with this is that the Loan Account setup wizard sets the account
opening balance at the loan amount and adding a transaction to move that
money will double your liability.
 
T

Taylor

Dick Watson said:
Disclaimer 1: I haven't tried this in a version or two. They may have
snuck a
change in on me.

Disclaimer 2: Applies to M04 and previous or M05 and up with advanced
register and not to Essentials.

The problem with this is that the Loan Account setup wizard sets the
account
opening balance at the loan amount and adding a transaction to move that
money will double your liability.

"Taylor" wrote:
<snip>

[advice: don't top post]

An opening balance should not be used here because there is no transaction
you can track doing that.

Opening balances should only be used if you are transferring another account
that has a long history that you don't want to input. For instance, if I
have a checking account with 4 years history with $100 balance, I open the
account in money and put $100 opening balance. I know that I can refer to
the paper history for this opening balance. If you are really opening an
account new, you should enter a deposit transaction that you can track for
the loan.
 
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D

Dick Watson

Many (most??) users see this with the MS newsreaders which favor top posting.
[advice: don't worry it]

I couldn't agree more with why setting the loan amount as the beginning
balance is a bad thing. Notetheless, that's what Money does when you create a
Loan Account. As noted, there is a workaround. As noted, said workaround is
complicated and maybe not worth the trouble.
 
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