Recording Loan Proceeds...


T

Tom

I have set up a 2nd mortgage loan, amortized, auto-
payments and all... no problem.

But the proceeds from this loan were deposited into my
checking account. In Quicken, I was able to do a
transfer, i.e. credit checking, debit the loan... and the
amount of the loan became the starting balance.

I can't do a transfer to a fixed loan in Money.

Short of making up a new income category... "Loan
Proceeds", does anyone know how to do this?

Doing above generates reports that make the proceeds look
like income without a corresponding expense to offset
that.

i.e. borrow $1000, deposit in checking. The $1000
deposited looks like income, but the $1000 borrowed does
not appear as an expense.

By being able to do a transfer, i.e. loan to checking,
the debit and credit cancel.

Thanks,

Tom

PS, the other option I figured is make the loan a
liability account, but that type account doesn't
automatically amortize the loan payments.
 
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L

Leon

Tom said:
I have set up a 2nd mortgage loan, amortized, auto-
payments and all... no problem.

But the proceeds from this loan were deposited into my
checking account. In Quicken, I was able to do a
transfer, i.e. credit checking, debit the loan... and the
amount of the loan became the starting balance.

I can't do a transfer to a fixed loan in Money.

Short of making up a new income category... "Loan
Proceeds", does anyone know how to do this?

Doing above generates reports that make the proceeds look
like income without a corresponding expense to offset
that.

i.e. borrow $1000, deposit in checking. The $1000
deposited looks like income, but the $1000 borrowed does
not appear as an expense.

By being able to do a transfer, i.e. loan to checking,
the debit and credit cancel.

Thanks,

Tom

PS, the other option I figured is make the loan a
liability account, but that type account doesn't
automatically amortize the loan payments.
When I bought my place last year I set up the loan and then offset it in my
closing clearing account with an entry that has no category.

It really is a transfer but it can't be done in Money.

Leon
 
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T

Tom Scott

-----Original Message-----


When I bought my place last year I set up the loan and then offset it in my
closing clearing account with an entry that has no category.

It really is a transfer but it can't be done in Money.

Leon


.
Leon,

Thanks for the reply and idea. I tried making an income
category, 'loan proceeds'. On reports, I can just exclude
that category. We'll see how that works.

From an accounting perspective, this is really a
shortcoming. When you borrow money, that's a debit to
that account and there must be a credit to offset, so
thusly a transfer should be allowed.

Even if you get a car loan... debit car loan account to
($20k), credit asset account... the car. Or... more
commonly, if you refinance your home with cash out, how
to you enter the check they give you when you deposit it
it? It really isn't income... it's a transfer or equity.

MS Money guys, are you taking note? Please consider
allowing this in loan accounts in future upgrades as is
allowed in credit card or liability accounts.

Thanks,

Tom.
 

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