[Gnucash-changes] r13854 - gnucash-docs/trunk - update with Bengt
Thuree's revisions
Chris Lyttle
wilddev at cvs.gnucash.org
Tue Apr 25 21:27:13 EDT 2006
Author: wilddev
Date: 2006-04-25 21:27:03 -0400 (Tue, 25 Apr 2006)
New Revision: 13854
Trac: http://svn.gnucash.org/trac/changeset/13854
Added:
gnucash-docs/trunk/guide/C/figures/capgain_app3main.png
gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanCalculation.png
gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanFirstPayment.png
gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanInitial.png
gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPayment.png
gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPaymentAccounts.png
Modified:
gnucash-docs/trunk/ChangeLog
gnucash-docs/trunk/guide/C/ch_accts.xml
gnucash-docs/trunk/guide/C/ch_bus_ar.xml
gnucash-docs/trunk/guide/C/ch_capgain.xml
gnucash-docs/trunk/guide/C/ch_cbook.xml
gnucash-docs/trunk/guide/C/ch_dep.xml
gnucash-docs/trunk/guide/C/ch_loans.xml
gnucash-docs/trunk/guide/C/ch_oview.xml
gnucash-docs/trunk/guide/C/ch_txns.xml
gnucash-docs/trunk/guide/C/figures/capgain_app2main.png
gnucash-docs/trunk/guide/C/figures/capgain_appmain.png
gnucash-docs/trunk/guide/C/figures/dep_assetmain.png
gnucash-docs/trunk/guide/C/figures/dep_assetreg.png
gnucash-docs/trunk/guide/C/figures/dep_example.png
gnucash-docs/trunk/guide/C/figures/loans_fcalc.png
gnucash-docs/trunk/guide/C/figures/loans_mortgage1.png
gnucash-docs/trunk/guide/C/figures/loans_mortgage2.png
gnucash-docs/trunk/guide/C/figures/loans_mortgage3.png
Log:
update with Bengt Thuree's revisions
Modified: gnucash-docs/trunk/ChangeLog
===================================================================
--- gnucash-docs/trunk/ChangeLog 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/ChangeLog 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,3 +1,24 @@
+2006-04-25 Chris Lyttle <chris at wilddev.net>
+
+ * Updated the following (from Bengt Thuree <bengt at thuree.com>):
+ 'guide/C/ch_accts.xml'
+ 'guide/C/ch_capgain.xml'
+ 'guide/C/ch_cbook.xml'
+ 'guide/C/ch_cbus_ar.xml'
+ 'guide/C/ch_dep.xml'
+ 'guide/C/ch_loans.xml'
+ 'guide/C/ch_oview.xml'
+ 'guide/C/ch_txns.xml'
+
+ * Added the following new screenshots (from Bengt Thuree
+ <bengt at thuree.com>):
+ 'guide/C/figures/capgain_app3main.png'
+ 'guide/C/figures/loans_PrivateLoanCalculation.png'
+ 'guide/C/figures/loans_PrivateLoanFirstPayment.png'
+ 'guide/C/figures/loans_PrivateLoanInitial.png'
+ 'guide/C/figures/loans_PrivateLoanSecondPayment.png'
+ 'guide/C/figures/loans_PrivateLoanSecondPaymentAccounts.png'
+
2006-04-25 David Hampton <hampton at employees.org>
* guide/C/ch_basics.xml:
Modified: gnucash-docs/trunk/guide/C/ch_accts.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_accts.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_accts.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -390,6 +390,7 @@
decrease in a liability, so they <emphasis>debit</emphasis> your bank
account.</para>
</sidebar>
+
</sect2>
</sect1>
Modified: gnucash-docs/trunk/guide/C/ch_bus_ar.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_bus_ar.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_bus_ar.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,3 +1,4 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
Version: 1.9.0
@@ -11,30 +12,72 @@
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter12">
- <title>Accounts Receivable</title>
- <para>Accounts Receivable (or A/R) refers to products or services provided by your company for which payment has not yet been received.</para>
+<chapter id="chapter_bus_ar">
+ <title>Accounts Receivable</title>
- <sect1 id="bus-ar-overview1">
- <title>Overview of Business Features</title>
- <para>The accounting needs of a business are quite different from that of a person. Businesses have customers that owe money, vendors which are owed money, employee payroll, more complex tax laws, etc. GnuCash offers business oriented features to facilitate these needs.</para>
- <para>Accounts Receivable (A/R) are used by businesses to record sales for which they are not immediately paid. Accounts Payable (A/P) record bills that they have received, but might not pay until later. These types of accounts are used primarily when you have a lot of bills and receipts flowing in and out, and do not want to lose track of them just because you do not pay or get paid right away. For most home users, A/R and A/P are too complicated to be worth the effort.</para>
- </sect1>
+ <para>Accounts Receivable (or A/R) refers to products or services provided
+ by your company for which payment has not yet been received.</para>
- <sect1 id="bus-ar-concepts1">
- <title>Basic Concepts</title>
- <para>Accounts Receivable (or A/R) refers to products or services provided by your company for which payment has not yet been received. This is represented on the balance sheet as an asset, because the expectation is that you will receive payment soon.</para>
+ <sect1 id="bus-ar-overview1">
+ <title>Overview of Business Features</title>
+
+ <para>The accounting needs of a business are quite different from that of
+ a person. Businesses have customers that owe money, vendors which are owed
+ money, employee payroll, more complex tax laws, etc. GnuCash offers
+ business oriented features to facilitate these needs.</para>
+
+ <para>Accounts Receivable (A/R) are used by businesses to record sales for
+ which they are not immediately paid. Accounts Payable (A/P) record bills
+ that they have received, but might not pay until later. These types of
+ accounts are used primarily when you have a lot of bills and receipts
+ flowing in and out, and do not want to lose track of them just because you
+ do not pay or get paid right away. For most home users, A/R and A/P are
+ too complicated to be worth the effort.</para>
</sect1>
+ <sect1 id="bus-ar-concepts1">
+ <title>Basic Concepts</title>
+
+ <para>Accounts Receivable (or A/R) refers to products or services provided
+ by your company for which payment has not yet been received. This is
+ represented on the balance sheet as an asset, because the expectation is
+ that you will receive payment soon.</para>
+ </sect1>
+
<sect1 id="bus-ar-setup1">
- <title>Initial Setup</title>
- <para>To set up GnuCash to handle accounts receivable for a company two preliminary things must be done. The first is to build an appropriate Account Hierarchy and the second is to register the company in GnuCash.</para>
- <sect2 id="bus-ar-setupacct2">
- <title>Account Setup</title>
- <para>There are many different ways to set up a business account hierarchy. You can start with the Business Accounts setup which is available from the New Account Hierarchy druid, or you could build one manually. To access the prebuilt Business Accounts, start GnuCash and click on <guimenu>File</guimenu> -> <guimenu>New File</guimenu> and proceed until you see the list of available accounts, select Business Accounts.</para>
- <para>The prebuilt Business Account hierarchy will not meet your needs exactly. You will need make adjustments for the hierarchy to function well with your particular situation. It should be close enough that it is recommended you begin with it.</para>
- <para>Accounts Receivable (or A/R) refers to products or services provided by the company on credit for which payment has not yet been received. This is represented on the balance sheet as an asset, because you expect to receive payment soon. To use GnuCash's integrated accounts receivable system, you must first set up an account (usually a sub-account under Assets) defined with account type <emphasis>A/Receivable</emphasis>. It is within this account that the integrated A/R system will place transactions.</para>
- <literallayout>
+ <title>Initial Setup</title>
+
+ <para>To set up GnuCash to handle accounts receivable for a company two
+ preliminary things must be done. The first is to build an appropriate
+ Account Hierarchy and the second is to register the company in
+ GnuCash.</para>
+
+ <sect2 id="bus-ar-setupacct2">
+ <title>Account Setup</title>
+
+ <para>There are many different ways to set up a business account
+ hierarchy. You can start with the Business Accounts setup which is
+ available from the New Account Hierarchy druid, or you could build one
+ manually. To access the prebuilt Business Accounts, start GnuCash and
+ click on <guimenu>File</guimenu> -> <guimenu>New File</guimenu> and
+ proceed until you see the list of available accounts, select Business
+ Accounts.</para>
+
+ <para>The prebuilt Business Account hierarchy will not meet your needs
+ exactly. You will need make adjustments for the hierarchy to function
+ well with your particular situation. It should be close enough that it
+ is recommended you begin with it.</para>
+
+ <para>Accounts Receivable (or A/R) refers to products or services
+ provided by the company on credit for which payment has not yet been
+ received. This is represented on the balance sheet as an asset, because
+ you expect to receive payment soon. To use GnuCash's integrated accounts
+ receivable system, you must first set up an account (usually a
+ sub-account under Assets) defined with account type
+ <emphasis>A/Receivable</emphasis>. It is within this account that the
+ integrated A/R system will place transactions.</para>
+
+ <literallayout>
Basic A/R Account Hierarchy:
-Assets
@@ -44,532 +87,958 @@
-Sales
</literallayout>
- <para>You need to add additional asset, expense, and income accounts to this hierarchy for it to be useful. The important aspects of this hierarchy are the use of an income account and the Accounts Receivable asset account, with account type set to <emphasis>A/Receivable</emphasis>.</para>
+ <para>You need to add additional asset, expense, and income accounts to
+ this hierarchy for it to be useful. The important aspects of this
+ hierarchy are the use of an income account and the Accounts Receivable
+ asset account, with account type set to
+ <emphasis>A/Receivable</emphasis>.</para>
- <note>
- <para>You do not need to create an individual A/R account for each customer. GnuCash keeps track of customers internally and provides per-customer reports based on the internal tracking.</para>
- </note>
- </sect2>
+ <note>
+ <para>You do not need to create an individual A/R account for each
+ customer. GnuCash keeps track of customers internally and provides
+ per-customer reports based on the internal tracking.</para>
+ </note>
+ </sect2>
- <sect2 id="bus-ar-setupcname2">
- <title>Company Registration</title>
- <para>After you have built the account structure, register the GnuCash file as belonging to your company. To register your company, select <guimenu>File</guimenu> -> <guimenu>Properties</guimenu>:</para>
+ <sect2 id="bus-ar-setupcname2">
+ <title>Company Registration</title>
- <itemizedlist>
- <listitem><para>Enter the name of your company along with contact information such as your phone number, fax number, e-mail address and website URL.</para></listitem>
- <listitem><para>Enter your company's tax payer id number in the <guilabel>Company ID</guilabel> field.</para></listitem>
- <listitem><para>Select default tax tables applicable to your most common customers and vendors.</para></listitem>
- </itemizedlist>
- </sect2>
-
- </sect1>
+ <para>After you have built the account structure, register the GnuCash
+ file as belonging to your company. To register your company, select
+ <guimenu>File</guimenu> -> <guimenu>Properties</guimenu>:</para>
- <sect1 id="bus-ar-components1">
- <title>System Components</title>
- <para>GnuCash has an integrated accounts receivable system. The transactions generated by the A/R system are recorded within the Accounts Receivable account. You generally do not work directly with this account. You generally work with the four integrated GnuCash A/R application components available through the <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> sub-menu. These four components are:</para>
+ <itemizedlist>
+ <listitem>
+ <para>Enter the name of your company along with contact information
+ such as your phone number, fax number, e-mail address and website
+ URL.</para>
+ </listitem>
- <itemizedlist>
- <listitem>
- <para><guilabel>Customers</guilabel> are people or companies to whom you sell products or services on credit.</para>
- </listitem>
- <listitem>
- <para><guilabel>Invoices</guilabel> represent the physical invoice you send to a customer to request payment. This invoice contains an itemized list of things you sold.</para>
- </listitem>
- <listitem>
- <para><guilabel>Jobs</guilabel> (optional) is where you register Customer Jobs. Jobs are a mechanism by which you can group multiple invoices to a particular customer.</para>
- </listitem>
- <listitem>
- <para><guilabel>Process Payments</guilabel> is used to register payments you received from a customer.</para>
- </listitem>
- </itemizedlist>
+ <listitem>
+ <para>Enter your company's tax payer id number in the
+ <guilabel>Company ID</guilabel> field.</para>
+ </listitem>
- <para>The following sections introduce the individual components in more detail.</para>
- </sect1>
+ <listitem>
+ <para>Select default tax tables applicable to your most common
+ customers and vendors.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+ </sect1>
- <sect1 id="bus-ar-customers1">
- <title>Customers</title>
- <para>Customers are people or companies to whom you sell goods or services. They must be registered within the A/R system.</para>
+ <sect1 id="bus-ar-components1">
+ <title>System Components</title>
- <sect2 id="bus-ar-custnew2">
- <title>New</title>
- <para>To register a new customer, enter the menu <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>New Customer</guimenu>. Fill in customer information, such as Company Name, Address, Phone, Fax, etc. Below is a list of the other options: </para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Identification - Customer Number</guilabel> - can be any number by which you would like to refer to this customer. You may leave it blank and a number will be chosen automatically.</para>
- </listitem>
- <listitem>
- <para><guilabel>Identification - Active</guilabel> - differentiates active customers from inactive ones. This is useful when you have many past customers, and you want to see only those marked active.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Address - Name</guilabel> - is the contact name of the person to receive the invoices.</para>
- </listitem>
- <listitem>
- <para><guilabel>Notes</guilabel> - records any additional comments about the customer.</para>
- </listitem>
- <listitem>
+ <para>GnuCash has an integrated accounts receivable system. The
+ transactions generated by the A/R system are recorded within the Accounts
+ Receivable account. You generally do not work directly with this account.
+ You generally work with the four integrated GnuCash A/R application
+ components available through the <guimenu>Business</guimenu> ->
+ <guimenu>Customer</guimenu> sub-menu. These four components are:</para>
- <para><guilabel>Billing Information - Currency</guilabel> - specifies the default billing currency.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Terms</guilabel> - specifies the default billing terms for this customer. Billing terms must be preregistered using <guimenu>Business</guimenu> -> <guimenu>Billing Terms Editor</guimenu>.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Discount</guilabel> - gives the customer a default percentage based discount at the time of invoice creation. Enter a value from 0 to 100. You can override the default discount when you create an invoice.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Credit Limit</guilabel> - stores the maximum credit you are willing to extend to the customer. This field is for your reference purposes only. GnuCash does not use the value.</para>
- </listitem>
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Customers</guilabel> are people or companies to whom
+ you sell products or services on credit.</para>
+ </listitem>
- <listitem>
- <para><guilabel>Billing Information - Tax Included</guilabel> - this specifies whether nor not tax is included in invoice amounts by default. You can choose <guilabel>Yes</guilabel>, <guilabel>No</guilabel>, or <guilabel>Use Global</guilabel>.
- <itemizedlist>
- <listitem><para><guilabel>Yes</guilabel> means that the tax is already included in amounts on invoices.</para></listitem>
- <listitem><para><guilabel>No</guilabel> means tax is not included.</para></listitem>
- <listitem><para><guilabel>Use Global</guilabel> means to use the setting made in the global preferences accessible through <guimenu>Edit</guimenu> -> <guimenu>Preferences</guimenu>.</para></listitem>
+ <listitem>
+ <para><guilabel>Invoices</guilabel> represent the physical invoice you
+ send to a customer to request payment. This invoice contains an
+ itemized list of things you sold.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Jobs</guilabel> (optional) is where you register
+ Customer Jobs. Jobs are a mechanism by which you can group multiple
+ invoices to a particular customer.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Process Payments</guilabel> is used to register
+ payments you received from a customer.</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>The following sections introduce the individual components in more
+ detail.</para>
+ </sect1>
+
+ <sect1 id="bus-ar-customers1">
+ <title>Customers</title>
+
+ <para>Customers are people or companies to whom you sell goods or
+ services. They must be registered within the A/R system.</para>
+
+ <sect2 id="bus-ar-custnew2">
+ <title>New</title>
+
+ <para>To register a new customer, enter the menu
+ <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> ->
+ <guimenu>New Customer</guimenu>. Fill in customer information, such as
+ Company Name, Address, Phone, Fax, etc. Below is a list of the other
+ options:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Identification - Customer Number</guilabel> - can be
+ any number by which you would like to refer to this customer. You
+ may leave it blank and a number will be chosen automatically.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Identification - Active</guilabel> - differentiates
+ active customers from inactive ones. This is useful when you have
+ many past customers, and you want to see only those marked
+ active.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Address - Name</guilabel> - is the contact
+ name of the person to receive the invoices.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Notes</guilabel> - records any additional comments
+ about the customer.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Currency</guilabel> -
+ specifies the default billing currency.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Terms</guilabel> - specifies
+ the default billing terms for this customer. Billing terms must be
+ preregistered using <guimenu>Business</guimenu> ->
+ <guimenu>Billing Terms Editor</guimenu>.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Discount</guilabel> - gives
+ the customer a default percentage based discount at the time of
+ invoice creation. Enter a value from 0 to 100. You can override the
+ default discount when you create an invoice.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Credit Limit</guilabel> -
+ stores the maximum credit you are willing to extend to the customer.
+ This field is for your reference purposes only. GnuCash does not use
+ the value.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Tax Included</guilabel> - this
+ specifies whether nor not tax is included in invoice amounts by
+ default. You can choose <guilabel>Yes</guilabel>,
+ <guilabel>No</guilabel>, or <guilabel>Use Global</guilabel>.
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Yes</guilabel> means that the tax is already
+ included in amounts on invoices.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>No</guilabel> means tax is not
+ included.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Use Global</guilabel> means to use the setting
+ made in the global preferences accessible through
+ <guimenu>Edit</guimenu> ->
+ <guimenu>Preferences</guimenu>.</para>
+ </listitem>
+ </itemizedlist></para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Billing Information - Tax Table</guilabel> -
+ specifies a default tax table to apply to invoice line items. Tax
+ tables must be registered from the <guimenu>Business</guimenu> ->
+ <guimenu>Tax Table Editor</guimenu> menu item.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Shipping Address</guilabel> - records the customer's
+ shipping address if it is different from the billing address. The
+ shipping address is for your reference. GnuCash does not use the
+ value.</para>
+ </listitem>
</itemizedlist>
- </para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Tax Table</guilabel> - specifies a default tax table to apply to invoice line items. Tax tables must be registered from the <guimenu>Business</guimenu> -> <guimenu>Tax Table Editor</guimenu> menu item.</para>
- </listitem>
- <listitem>
- <para><guilabel>Shipping Address</guilabel> - records the customer's shipping address if it is different from the billing address. The shipping address is for your reference. GnuCash does not use the value.</para>
- </listitem>
- </itemizedlist>
-
- <para>This is what the New Customer registration window looks like:</para>
- <screenshot id="bus-ar-custnew">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_custnew.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>New Customer Registration Window</phrase>
- </textobject>
- <caption>
- <para>New Customer Registration Window</para>
- </caption>
- </mediaobject>
- </screenshot>
-
- </sect2>
- <sect2 id="bus-ar-custfind2">
- <title>Find and Edit</title>
- <para>To search for an existing customer, use the <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>Find Customer</guimenu> window. You select a customer to <guilabel>View/Edit</guilabel> from the results of the search. This window is also used to look up customers when creating invoices and processing payments.</para>
+ <para>This is what the New Customer registration window looks
+ like:</para>
- <screenshot id="bus-ar-custfind">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_custfind.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Find Customer Window</phrase>
- </textobject>
- <caption>
- <para>Find Customer Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
-
- <para>If many customers match the search criteria you provide, the search can be refined by running an additional search within the current results. The current result set is searched when the <guilabel>Refine Current Search</guilabel> radio button is selected. In fact, GnuCash selects this option for you after you run the initial search.</para>
+ <screenshot id="bus-ar-custnew">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_custnew.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
- <para>If the customer you are searching for does not match the supplied search criteria, change the search criteria, click the <guilabel>New Search</guilabel> radio button and then the <guilabel>Find</guilabel> button. The relevant step is the <guilabel>New Search</guilabel> selection. If the customer is not in the result of the original search, and you only search within this set, the customer cannot be found, regardless of new search criteria.</para>
+ <textobject>
+ <phrase>New Customer Registration Window</phrase>
+ </textobject>
- <note>
- <para>To return a list of all registered active customers, set the search criterion to <guilabel>matches regex</guilabel>, and place a single dot "." in the text field area. Make sure <guilabel>Search only active data</guilabel> is checked, then click <guibutton>Find</guibutton>. The regular expression "." means to match anything.</para>
- </note>
+ <caption><para>New Customer Registration Window</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
- </sect2>
- </sect1>
+ <sect2 id="bus-ar-custfind2">
+ <title>Find and Edit</title>
- <sect1 id="bus-ar-invoices1">
- <title>Invoices</title>
- <para>An invoice is the paperwork you send to a customer to request payment for products or services rendered. GnuCash can generate and track invoices.</para>
- <sect2 id="bus-ar-invoicenew2">
- <title>New</title>
- <para>To send an invoice to a customer you must first create a new invoice. To create an invoice use <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>New Invoice</guimenu>. The New Invoice window must be filled in appropriately:</para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Invoice Information - Invoice ID</guilabel> - the identification number of this invoice. This is your internal number for this invoice. If you leave it blank, an invoice number will be generated automically.</para>
- </listitem>
- <listitem>
- <para><guilabel>Invoice Information - Date Opened</guilabel> - the date this invoice was created.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Customer</guilabel> - the customer who is to receive this invoice. Use the <guilabel>Select</guilabel> button to access the <guilabel>Find Customer</guilabel> window described in the previous section. When you have looked up the customer to be invoiced, click the <guilabel>Select</guilabel> in the search window to select the customer.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Job</guilabel> (optional) - associates the new invoice with a customer job. Customer jobs are described in the following section.</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Billing ID</guilabel> - this is the customer's PO Number or other "customer reference number". You should use it to identify your invoices to this customer (and job, if you have one).</para>
- </listitem>
- <listitem>
- <para><guilabel>Billing Information - Terms</guilabel> - the payback terms agreement for this invoice. A list of registered terms is available within the pop up menu. If you specified a default value for the selected customer, this field is initialized with the default.</para>
- </listitem>
- </itemizedlist>
+ <para>To search for an existing customer, use the
+ <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> ->
+ <guimenu>Find Customer</guimenu> window. You select a customer to
+ <guilabel>View/Edit</guilabel> from the results of the search. This
+ window is also used to look up customers when creating invoices and
+ processing payments.</para>
- <screenshot id="bus-ar-invoicenew">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoicenew.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Creating a New Invoice</phrase>
- </textobject>
- <caption>
- <para>Creating a New Invoice
- </para>
- </caption>
- </mediaobject>
- </screenshot>
-
- <para>When you click the <guilabel>OK</guilabel> button, the <guilabel>Edit Invoice</guilabel> window opens.</para>
- </sect2>
+ <screenshot id="bus-ar-custfind">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_custfind.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
- <sect2 id="bus-ar-invoiceedit2">
- <title>Edit</title>
- <para>From the Edit Invoice window you can enter an itemized list of things you sold on this invoice, in a manner similar to how the account register works.</para>
- <screenshot id="bus-ar-invoiceedit">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoiceedit.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Edit Invoice Window</phrase>
- </textobject>
- <caption>
- <para>Edit Invoice Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <textobject>
+ <phrase>Find Customer Window</phrase>
+ </textobject>
- <para>There are 15 columns in the <guilabel>Invoice Entries</guilabel> area:</para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Date</guilabel> - The date this item was sold.</para>
- </listitem>
- <listitem>
- <para><guilabel>Invoiced?</guilabel> - <guilabel>X</guilabel> means the item is attached to this invoice, an empty box means the item is not attached to this invoice. The item is attached for you when you proceed to the next line item.</para>
- </listitem>
- <listitem>
- <para><guilabel>Description</guilabel> (optional) - is what the item or service is called.</para>
- </listitem>
- <listitem>
- <para><guilabel>Action</guilabel> (optional) - is a user defined field. You can place Cost Center information here, or use one of the 3 predefined actions, Hours, Material, or Project.</para>
- </listitem>
- <listitem>
- <para><guilabel>Income Account</guilabel> - selects which income account is credited with this income.</para>
- </listitem>
- <listitem>
- <para><guilabel>Quantity</guilabel> - tracks how many of the items you sold.</para>
- </listitem>
- <listitem>
- <para><guilabel>Unit Price</guilabel> - is the unit price of the item.</para>
- </listitem>
- <listitem>
- <para><guilabel>Discount Type</guilabel> - is the type of discount:</para>
- <itemizedlist>
- <listitem><para><guilabel>$</guilabel> means <guilabel>Discount</guilabel> is a montary value</para></listitem>
- <listitem><para><guilabel>%</guilabel> means <guilabel>Discount</guilabel> is a percentage.</para></listitem>
- </itemizedlist>
- <para>You can click the field to toggle between the discount types.</para>
- </listitem>
- <listitem>
- <para><guilabel>Discount How</guilabel> - the discount can be computed as follows:</para>
- <itemizedlist>
- <listitem><para><guilabel>></guilabel> means the discount applies after tax.</para></listitem>
- <listitem><para><guilabel><</guilabel> means the discount applies before tax.</para></listitem>
- <listitem><para><guilabel>=</guilabel> means both discount and tax are applied to the pretax value.</para></listitem>
- </itemizedlist>
- <para>You can click the field to change the setting.</para>
- </listitem>
- <listitem>
- <para><guilabel>Discount</guilabel> (optional) - is the total discount, in monetary units or percentage, depending on <guilabel>Discount Type</guilabel>. You can leave it blank for no discount. Any default discount you specified for the customer will be automatically entered for each new item.</para>
- </listitem>
- <listitem>
- <para><guilabel>Taxable?</guilabel> - is this item taxable? <guilabel>X</guilabel> means yes, a blank field means no. You can click the field to toggle the setting.</para>
- </listitem>
- <listitem>
- <para><guilabel>Tax Included?</guilabel> - has the tax already been included in the unit price? <guilabel>X</guilabel> means yes, a blank field means no. For example, if there is 1 item of $100 with a tax of 5% then:</para>
+ <caption><para>Find Customer Window </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>If many customers match the search criteria you provide, the
+ search can be refined by running an additional search within the current
+ results. The current result set is searched when the <guilabel>Refine
+ Current Search</guilabel> radio button is selected. In fact, GnuCash
+ selects this option for you after you run the initial search.</para>
+
+ <para>If the customer you are searching for does not match the supplied
+ search criteria, change the search criteria, click the <guilabel>New
+ Search</guilabel> radio button and then the <guilabel>Find</guilabel>
+ button. The relevant step is the <guilabel>New Search</guilabel>
+ selection. If the customer is not in the result of the original search,
+ and you only search within this set, the customer cannot be found,
+ regardless of new search criteria.</para>
+
+ <note>
+ <para>To return a list of all registered active customers, set the
+ search criterion to <guilabel>matches regex</guilabel>, and place a
+ single dot "." in the text field area. Make sure <guilabel>Search only
+ active data</guilabel> is checked, then click
+ <guibutton>Find</guibutton>. The regular expression "." means to match
+ anything.</para>
+ </note>
+ </sect2>
+ </sect1>
+
+ <sect1 id="bus-ar-invoices1">
+ <title>Invoices</title>
+
+ <para>An invoice is the paperwork you send to a customer to request
+ payment for products or services rendered. GnuCash can generate and track
+ invoices.</para>
+
+ <sect2 id="bus-ar-invoicenew2">
+ <title>New</title>
+
+ <para>To send an invoice to a customer you must first create a new
+ invoice. To create an invoice use <guimenu>Business</guimenu> ->
+ <guimenu>Customer</guimenu> -> <guimenu>New Invoice</guimenu>. The
+ New Invoice window must be filled in appropriately:</para>
+
<itemizedlist>
- <listitem><para>If Tax Included is empty, then subtotal = $100 and tax = $5.</para></listitem>
- <listitem><para>If Tax included is set (<guilabel>X</guilabel>), then subtotal = $95 and tax = $5.</para></listitem>
- </itemizedlist>
- </listitem>
- <listitem>
- <para><guilabel>Tax Table</guilabel> (optional) - this is a pop up menu of all the available tax tables. If you make the item taxable, then this table is used to compute the amount of tax. The tax table determines tax percentages and the accounts to which tax is charged.</para>
- </listitem>
- <listitem>
- <para><guilabel>Subtotal</guilabel> (uneditable) - is the computed subtotal for this item (less tax).</para>
- </listitem>
- <listitem>
- <para><guilabel>Tax</guilabel> (uneditable) - is the computed tax for this item.</para>
- </listitem>
- </itemizedlist>
+ <listitem>
+ <para><guilabel>Invoice Information - Invoice ID</guilabel> - the
+ identification number of this invoice. This is your internal number
+ for this invoice. If you leave it blank, an invoice number will be
+ generated automically.</para>
+ </listitem>
- <para>When you have finished entering all the items, you can <guilabel>Post</guilabel> and print the invoice.</para>
- </sect2>
+ <listitem>
+ <para><guilabel>Invoice Information - Date Opened</guilabel> - the
+ date this invoice was created.</para>
+ </listitem>
- <sect2 id="bus-ar-invoicepost2">
- <title>Post</title>
+ <listitem>
+ <para><guilabel>Billing Information - Customer</guilabel> - the
+ customer who is to receive this invoice. Use the
+ <guilabel>Select</guilabel> button to access the <guilabel>Find
+ Customer</guilabel> window described in the previous section. When
+ you have looked up the customer to be invoiced, click the
+ <guilabel>Select</guilabel> in the search window to select the
+ customer.</para>
+ </listitem>
- <para>When you finish editing an invoice and are ready to print, you must <guilabel>Post</guilabel> the invoice. The invoice does not have to be posted immediately. In fact, you should only post an invoice when you are ready to print it. Posting an invoice places the transactions in an accounts receivable account.</para>
- <para>The Post Invoice window appears and asks you to enter information:</para>
- <screenshot id="bus-ar-invoicepost">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoicepost.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Post Invoice Window</phrase>
- </textobject>
- <caption>
- <para>Post Invoice Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <listitem>
+ <para><guilabel>Billing Information - Job</guilabel> (optional) -
+ associates the new invoice with a customer job. Customer jobs are
+ described in the following section.</para>
+ </listitem>
-<itemizedlist>
-<listitem><para><guilabel>Post Date</guilabel> - specifies the date for the transactions entered into the accounts receivable account.</para></listitem>
-<listitem><para><guilabel>Due Date</guilabel> - is the date on which payment for the invoice is expected.</para>
- <itemizedlist>
- <listitem><para>If you specified payment terms when you created the invoice, the date is calculated according to selected terms, and the entry field is insensitive.</para></listitem>
- <listitem><para>If you did no specify payment terms, enter the expected payment due date here.</para></listitem>
- </itemizedlist>
-</listitem>
-<listitem><para><guilabel>Description</guilabel> - is an arbitrary description. When invoice transactions are placed the accounts receivable account, this description is entered in the memo field of those transactions.</para></listitem>
-<listitem><para><guilabel>Post To Account</guilabel> - selects the accounts receivable account in which invoice transcations are posted. You can select the account from a list existing A/Receivable accounts.</para></listitem>
-<listitem><para><guilabel>Accumulate Splits</guilabel> - determines if invoice items which transfer to the same account are combined into a single split for that account or entered individually. For the sample invoice which sold Nails and a Hammer, the setting affects post results as follows:</para>
- <itemizedlist>
- <listitem><para>Checked (splits are accumulated) - a single transfer of $575.00 from the Income:Sales account is recorded.</para></listitem>
- <listitem><para>Not checked - the transaction created A/Receivable account, shows two transfers from Income:Sales account $100.00 and $475.00. The memo field in the splits indicate the sale of Nails and the Hammer (the item descriptions entered on the invoice) respectively.</para></listitem>
- </itemizedlist>
-</listitem>
-</itemizedlist>
- </sect2>
+ <listitem>
+ <para><guilabel>Billing Information - Billing ID</guilabel> - this
+ is the customer's PO Number or other "customer reference number".
+ You should use it to identify your invoices to this customer (and
+ job, if you have one).</para>
+ </listitem>
- <sect2 id="bus-ar-invoicefind2">
- <title>Find</title>
- <para>To find an existing invoice, use the <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>Find Invoice</guimenu> application. From the results of the search, you can select an invoice to edit or view. </para>
- <note>
- <para>Before you can edit a posted invoice, you will need to <guilabel>Unpost</guilabel> it.</para>
- </note>
- <para>One of the design goals in GnuCash's Account Receivable system was to allow different processes to get to the same state, so you can reach an invoice from different directions based on the way you think about the problem:</para>
- <itemizedlist>
- <listitem><para>You can search for the customer first, then list their invoices.</para></listitem>
- <listitem><para>You can search for invoices by number or by company name.</para></listitem>
- <listitem><para>You can list invoices associated with a customer job.</para></listitem>
- </itemizedlist>
- </sect2>
+ <listitem>
+ <para><guilabel>Billing Information - Terms</guilabel> - the payback
+ terms agreement for this invoice. A list of registered terms is
+ available within the pop up menu. If you specified a default value
+ for the selected customer, this field is initialized with the
+ default.</para>
+ </listitem>
+ </itemizedlist>
- <sect2 id="bus-ar-invoiceprint2">
- <title>Print</title>
- <para>After you post an invoice, you should print it and send it to your customer. To print an invoice use <guimenu>File</guimenu> -> <guimenu>Print Invoice</guimenu> menu item.</para>
- <para>An example of the default GnuCash invoice print output is shown below.</para>
+ <screenshot id="bus-ar-invoicenew">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoicenew.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
- <screenshot id="bus-ar-invoiceprint">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoiceprint.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Invoice Print Output</phrase>
- </textobject>
- <caption>
- <para>Invoice Print Output
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- <note>
- <para>You can modify the appearance of the invoice, IE: add a company logo, etc. To do so, see the section in this chapter entitled "Changing the Invoice Appearance".</para>
- </note>
+ <textobject>
+ <phrase>Creating a New Invoice</phrase>
+ </textobject>
-<para>Invoices can also be printed from the main window by selecting <guimenu>Reports</guimenu> -> <guimenu>Business Reports</guimenu> -> <guimenu>Printable Invoice</guimenu> from the main menu. The resulting report window states that no valid invoice is selected. To select the invoice to print:</para>
-<orderedlist>
- <listitem><para>Use the <guilabel>Options</guilabel> tool bar button or select <guimenu>Edit</guimenu> -> <guimenu>Report Options</guimenu> from the main menu.</para></listitem>
- <listitem><para>Select the <guilabel>General</guilabel> tab of the report options dialog.</para></listitem>
- <listitem><para>Click the <guilabel>Select</guilabel> button next to the <guilabel>Invoice Number</guilabel> field.</para></listitem>
- <listitem><para>Search for the invoice as usual.</para></listitem>
-</orderedlist>
+ <caption><para>Creating a New Invoice </para></caption>
+ </mediaobject>
+ </screenshot>
-<para>You can also print invoices from within the Process Payment dialog. See the section titled Process Payment for instructions on how to do so.</para>
- </sect2>
+ <para>When you click the <guilabel>OK</guilabel> button, the
+ <guilabel>Edit Invoice</guilabel> window opens.</para>
+ </sect2>
- <sect2 id="bus-ar-invoicestarting2">
- <title>Assign Starting Invoice Number</title>
- <para>There is no easy way to assign an automatic starting invoice number. GnuCash starts with number 1 and increments from there. You can manually type an invoice number into the text box each time you create an invoice, but this gets tiring and sooner or later leads to duplicate numbers.</para>
- <para>You can change the starting invoice number if it is important you. There is no user interface to change the number at this time. You have to hand edit your XML data file. The relevant entry is in the "counters" section near the beginning of the file. The file must be re-opened after editing.</para>
- <note>
- <para>GnuCash optionally compresses files. Disable compression and save before editing the file. To enable or disable compression use <guimenu>Edit</guimenu> -> <guimenu>Preferenecs</guimenu>, access the <guilabel>General</guilabel> tab, and select or deselect the <guilabel>Compress Files</guilabel> check box.</para>
- </note>
- </sect2>
+ <sect2 id="bus-ar-invoiceedit2">
+ <title>Edit</title>
+
+ <para>From the Edit Invoice window you can enter an itemized list of
+ things you sold on this invoice, in a manner similar to how the account
+ register works.</para>
+
+ <screenshot id="bus-ar-invoiceedit">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoiceedit.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Edit Invoice Window</phrase>
+ </textobject>
+
+ <caption><para>Edit Invoice Window </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>There are 15 columns in the <guilabel>Invoice Entries</guilabel>
+ area:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Date</guilabel> - The date this item was
+ sold.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Invoiced?</guilabel> - <guilabel>X</guilabel> means
+ the item is attached to this invoice, an empty box means the item is
+ not attached to this invoice. The item is attached for you when you
+ proceed to the next line item.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Description</guilabel> (optional) - is what the item
+ or service is called.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Action</guilabel> (optional) - is a user defined
+ field. You can place Cost Center information here, or use one of the
+ 3 predefined actions, Hours, Material, or Project.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Income Account</guilabel> - selects which income
+ account is credited with this income.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Quantity</guilabel> - tracks how many of the items
+ you sold.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Unit Price</guilabel> - is the unit price of the
+ item.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Discount Type</guilabel> - is the type of
+ discount:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>$</guilabel> means <guilabel>Discount</guilabel>
+ is a montary value</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>%</guilabel> means <guilabel>Discount</guilabel>
+ is a percentage.</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>You can click the field to toggle between the discount
+ types.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Discount How</guilabel> - the discount can be
+ computed as follows:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>></guilabel> means the discount applies after
+ tax.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel><</guilabel> means the discount applies
+ before tax.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>=</guilabel> means both discount and tax are
+ applied to the pretax value.</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>You can click the field to change the setting.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Discount</guilabel> (optional) - is the total
+ discount, in monetary units or percentage, depending on
+ <guilabel>Discount Type</guilabel>. You can leave it blank for no
+ discount. Any default discount you specified for the customer will
+ be automatically entered for each new item.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Taxable?</guilabel> - is this item taxable?
+ <guilabel>X</guilabel> means yes, a blank field means no. You can
+ click the field to toggle the setting.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Tax Included?</guilabel> - has the tax already been
+ included in the unit price? <guilabel>X</guilabel> means yes, a
+ blank field means no. For example, if there is 1 item of $100 with a
+ tax of 5% then:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>If Tax Included is empty, then subtotal = $100 and tax =
+ $5.</para>
+ </listitem>
+
+ <listitem>
+ <para>If Tax included is set (<guilabel>X</guilabel>), then
+ subtotal = $95 and tax = $5.</para>
+ </listitem>
+ </itemizedlist>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Tax Table</guilabel> (optional) - this is a pop up
+ menu of all the available tax tables. If you make the item taxable,
+ then this table is used to compute the amount of tax. The tax table
+ determines tax percentages and the accounts to which tax is
+ charged.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Subtotal</guilabel> (uneditable) - is the computed
+ subtotal for this item (less tax).</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Tax</guilabel> (uneditable) - is the computed tax
+ for this item.</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>When you have finished entering all the items, you can
+ <guilabel>Post</guilabel> and print the invoice.</para>
+ </sect2>
+
+ <sect2 id="bus-ar-invoicepost2">
+ <title>Post</title>
+
+ <para>When you finish editing an invoice and are ready to print, you
+ must <guilabel>Post</guilabel> the invoice. The invoice does not have to
+ be posted immediately. In fact, you should only post an invoice when you
+ are ready to print it. Posting an invoice places the transactions in an
+ accounts receivable account.</para>
+
+ <para>The Post Invoice window appears and asks you to enter
+ information:</para>
+
+ <screenshot id="bus-ar-invoicepost">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoicepost.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Post Invoice Window</phrase>
+ </textobject>
+
+ <caption><para>Post Invoice Window </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Post Date</guilabel> - specifies the date for the
+ transactions entered into the accounts receivable account.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Due Date</guilabel> - is the date on which payment
+ for the invoice is expected.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>If you specified payment terms when you created the
+ invoice, the date is calculated according to selected terms, and
+ the entry field is insensitive.</para>
+ </listitem>
+
+ <listitem>
+ <para>If you did no specify payment terms, enter the expected
+ payment due date here.</para>
+ </listitem>
+ </itemizedlist>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Description</guilabel> - is an arbitrary
+ description. When invoice transactions are placed the accounts
+ receivable account, this description is entered in the memo field of
+ those transactions.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Post To Account</guilabel> - selects the accounts
+ receivable account in which invoice transcations are posted. You can
+ select the account from a list existing A/Receivable
+ accounts.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Accumulate Splits</guilabel> - determines if invoice
+ items which transfer to the same account are combined into a single
+ split for that account or entered individually. For the sample
+ invoice which sold Nails and a Hammer, the setting affects post
+ results as follows:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Checked (splits are accumulated) - a single transfer of
+ $575.00 from the Income:Sales account is recorded.</para>
+ </listitem>
+
+ <listitem>
+ <para>Not checked - the transaction created A/Receivable
+ account, shows two transfers from Income:Sales account $100.00
+ and $475.00. The memo field in the splits indicate the sale of
+ Nails and the Hammer (the item descriptions entered on the
+ invoice) respectively.</para>
+ </listitem>
+ </itemizedlist>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+
+ <sect2 id="bus-ar-invoicefind2">
+ <title>Find</title>
+
+ <para>To find an existing invoice, use the <guimenu>Business</guimenu>
+ -> <guimenu>Customer</guimenu> -> <guimenu>Find Invoice</guimenu>
+ application. From the results of the search, you can select an invoice
+ to edit or view.</para>
+
+ <note>
+ <para>Before you can edit a posted invoice, you will need to
+ <guilabel>Unpost</guilabel> it.</para>
+ </note>
+
+ <para>One of the design goals in GnuCash's Account Receivable system was
+ to allow different processes to get to the same state, so you can reach
+ an invoice from different directions based on the way you think about
+ the problem:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>You can search for the customer first, then list their
+ invoices.</para>
+ </listitem>
+
+ <listitem>
+ <para>You can search for invoices by number or by company
+ name.</para>
+ </listitem>
+
+ <listitem>
+ <para>You can list invoices associated with a customer job.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+
+ <sect2 id="bus-ar-invoiceprint2">
+ <title>Print</title>
+
+ <para>After you post an invoice, you should print it and send it to your
+ customer. To print an invoice use <guimenu>File</guimenu> ->
+ <guimenu>Print Invoice</guimenu> menu item.</para>
+
+ <para>An example of the default GnuCash invoice print output is shown
+ below.</para>
+
+ <screenshot id="bus-ar-invoiceprint">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoiceprint.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Invoice Print Output</phrase>
+ </textobject>
+
+ <caption><para>Invoice Print Output </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <note>
+ <para>You can modify the appearance of the invoice, IE: add a company
+ logo, etc. To do so, see the <xref
+ linkend="bus-ar-invoicechange" />.</para>
+ </note>
+
+ <para>Invoices can also be printed from the main window by selecting
+ <guimenu>Reports</guimenu> -> <guimenu>Business Reports</guimenu>
+ -> <guimenu>Printable Invoice</guimenu> from the main menu. The
+ resulting report window states that no valid invoice is selected. To
+ select the invoice to print:</para>
+
+ <orderedlist>
+ <listitem>
+ <para>Use the <guilabel>Options</guilabel> tool bar button or select
+ <guimenu>Edit</guimenu> -> <guimenu>Report Options</guimenu> from
+ the main menu.</para>
+ </listitem>
+
+ <listitem>
+ <para>Select the <guilabel>General</guilabel> tab of the report
+ options dialog.</para>
+ </listitem>
+
+ <listitem>
+ <para>Click the <guilabel>Select</guilabel> button next to the
+ <guilabel>Invoice Number</guilabel> field.</para>
+ </listitem>
+
+ <listitem>
+ <para>Search for the invoice as usual.</para>
+ </listitem>
+ </orderedlist>
+
+ <para>You can also print invoices from within the Process Payment
+ dialog. See the <xref linkend="bus-ar-payment1" /> for instructions on
+ how to do so.</para>
+ </sect2>
+
+ <sect2 id="bus-ar-invoicestarting2">
+ <title>Assign Starting Invoice Number</title>
+
+ <para>There is no easy way to assign an automatic starting invoice
+ number. GnuCash starts with number 1 and increments from there. You can
+ manually type an invoice number into the text box each time you create
+ an invoice, but this gets tiring and sooner or later leads to duplicate
+ numbers.</para>
+
+ <para>You can change the starting invoice number if it is important you.
+ There is no user interface to change the number at this time. You have
+ to hand edit your XML data file. The relevant entry is in the "counters"
+ section near the beginning of the file. The file must be re-opened after
+ editing.</para>
+
+ <note>
+ <para>GnuCash optionally compresses files. Disable compression and
+ save before editing the file. To enable or disable compression use
+ <guimenu>Edit</guimenu> -> <guimenu>Preferenecs</guimenu>, access
+ the <guilabel>General</guilabel> tab, and select or deselect the
+ <guilabel>Compress Files</guilabel> check box.</para>
+ </note>
+ </sect2>
</sect1>
- <sect1 id="bus-ar-jobs1">
- <title>Customer Jobs</title>
+ <sect1 id="bus-ar-jobs1">
+ <title>Customer Jobs</title>
- <para>Customer Jobs are used to group multiple invoices to the same customer. Use of the Customer Jobs feature is optional. The feature is useful when you have multiple "jobs" for the same customer, and would like to view all the invoices related to a single job.</para>
- <para>To use customer jobs, you must create them using the <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>New Job</guimenu> application. You will see the <guilabel>New Job</guilabel> window. The editable fields are:</para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Job Info - Job Number</guilabel> (optional) - enter the number for this job. If left blank, a number will be chosen for you.</para>
- </listitem>
- <listitem>
- <para><guilabel>Job Info - Job Name</guilabel> - the name you want to assign to the new job.</para>
- </listitem>
- <listitem>
- <para><guilabel>Owner Info - Customer</guilabel> - the customer for whom the job is created.</para>
- </listitem>
- <listitem>
- <para><guilabel>Owner Info - Billing ID</guilabel> - the customer's reference to this job (e.g. their PO Number). This is the "Billing Identification" that they require to correlated your invoices with their order. The Billing ID you enter is used to set the billing id for new invoices associated with this job.</para>
- </listitem>
- <listitem>
- <para><guilabel>Job Active</guilabel> - toggles this job being active or not. This is useful when you have many inactive jobs, since it is easier to search only among jobs that are marked active.</para>
- </listitem>
- </itemizedlist>
+ <para>Customer Jobs are used to group multiple invoices to the same
+ customer. Use of the Customer Jobs feature is optional. The feature is
+ useful when you have multiple "jobs" for the same customer, and would like
+ to view all the invoices related to a single job.</para>
- <screenshot id="bus-ar-jobnew">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_jobnew.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>New Customer Job</phrase>
- </textobject>
- <caption>
- <para>New Customer Job
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <para>To use customer jobs, you must create them using the
+ <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> ->
+ <guimenu>New Job</guimenu> application. You will see the <guilabel>New
+ Job</guilabel> window. The editable fields are:</para>
- <para>To edit an existing existing customer job, use the <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>Find Job</guimenu> application. Select the desired job in the search results, and click the <guilabel>View/Edit Job</guilabel> button.</para>
- <para>To select from the invoices associated with a given job, use <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>Find Job</guimenu> application. Select the desired job in the search results and click the <guilabel>View Invoices</guilabel> button. A window listing invoices associated with this job appears. Select an invoice and click the <guilabel>View Invoice</guilabel> button to open an invoice editor in the main application window.</para>
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Job Info - Job Number</guilabel> (optional) - enter
+ the number for this job. If left blank, a number will be chosen for
+ you.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Job Info - Job Name</guilabel> - the name you want to
+ assign to the new job.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Owner Info - Customer</guilabel> - the customer for
+ whom the job is created.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Owner Info - Billing ID</guilabel> - the customer's
+ reference to this job (e.g. their PO Number). This is the "Billing
+ Identification" that they require to correlated your invoices with
+ their order. The Billing ID you enter is used to set the billing id
+ for new invoices associated with this job.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Job Active</guilabel> - toggles this job being active
+ or not. This is useful when you have many inactive jobs, since it is
+ easier to search only among jobs that are marked active.</para>
+ </listitem>
+ </itemizedlist>
+
+ <screenshot id="bus-ar-jobnew">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_jobnew.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>New Customer Job</phrase>
+ </textobject>
+
+ <caption><para>New Customer Job </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>To edit an existing existing customer job, use the
+ <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> ->
+ <guimenu>Find Job</guimenu> application. Select the desired job in the
+ search results, and click the <guilabel>View/Edit Job</guilabel>
+ button.</para>
+
+ <para>To select from the invoices associated with a given job, use
+ <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> ->
+ <guimenu>Find Job</guimenu> application. Select the desired job in the
+ search results and click the <guilabel>View Invoices</guilabel> button. A
+ window listing invoices associated with this job appears. Select an
+ invoice and click the <guilabel>View Invoice</guilabel> button to open an
+ invoice editor in the main application window.</para>
</sect1>
- <sect1 id="bus-ar-payment1">
- <title>Process Payment</title>
- <para>Eventually, you will receive payment from your customers for outstanding invoices. To register these payments, use the Process Payment application found in <guimenu>Business</guimenu> -> <guimenu>Customer</guimenu> -> <guimenu>Process Payment</guimenu>.</para>
- <para>The Process Payment application consists of:</para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Payment Information - Customer</guilabel> - the customer who paid you.</para>
- </listitem>
- <listitem>
- <para><guilabel>Payment Information - Invoice</guilabel> - the invoice for which payment was received. When you select an invoice, the <guilabel>Amount</guilabel> field is set to total due for the selected invoice.</para>
- </listitem>
- <listitem>
- <para><guilabel>Payment Information - Date</guilabel> - the date you you received payment.</para>
- </listitem>
- <listitem>
- <para><guilabel>Payment Information - Amount</guilabel> - the amount of money received.</para>
- </listitem>
- <listitem>
- <para><guilabel>Payment Information - Num</guilabel> - the check number.</para>
- </listitem>
- <listitem>
- <para><guilabel>Payment Information - Memo</guilabel> - any comments about this payment.</para>
- </listitem>
- <listitem>
- <para><guilabel>Post To</guilabel> - the A/Receivable account to which to post this transaction.</para>
- </listitem>
- <listitem>
- <para><guilabel>Transfer Account</guilabel> - the account where the money will be deposited (a checking account for example).</para>
- </listitem>
- </itemizedlist>
-
- <para>Below is the GnuCash Accounts Receivable payment window.</para>
- <screenshot id="bus-ar-payment">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_payment.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>Process Payment</phrase>
- </textobject>
- <caption>
- <para>Process Payment Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- </sect1>
+ <sect1 id="bus-ar-payment1">
+ <title>Process Payment</title>
- <sect1 id="bus-ar-invoicechange">
- <title>Changing the Invoice Appearance</title>
- <para>The default Invoice style, as shown in the "Invoices" section in this chapter, is fairly barren. The default invoice style leaves the top part of the form blank, so you can print on company letterhead paper. There are some things you can do to change invoice appearance.</para>
- <para>Use <guimenu>File</guimenu> -> <guimenu>Properties</guimenu> to enter your company name and address, which is printed on the right side of invoices.</para>
+ <para>Eventually, you will receive payment from your customers for
+ outstanding invoices. To register these payments, use the Process Payment
+ application found in <guimenu>Business</guimenu> ->
+ <guimenu>Customer</guimenu> -> <guimenu>Process
+ Payment</guimenu>.</para>
- <para>To add a customized background, heading banner or logo to invoices, modify the invoice style sheets. To do this, go to <guimenu>Edit</guimenu> -> <guimenu>Style Sheets</guimenu> and make a <guilabel>New</guilabel> style sheet. You will see a window like this:</para>
+ <para>The Process Payment application consists of:</para>
- <screenshot id="bus-ar-invoicechange1">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoicechange1.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>New Style Sheet Window</phrase>
- </textobject>
- <caption>
- <para>The New Style Sheet window.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Payment Information - Customer</guilabel> - the
+ customer who paid you.</para>
+ </listitem>
- <para>You must select the <guilabel>Fancy</guilabel> style sheet template, and choose a name for your new style sheet. When you click the <guilabel>OK</guilabel> button, the HTML Style Sheet editor window is displayed. This window contains four tabs, Colors, General, Images, and Tables. The Colors tab allows you to change the colors of various sections of the invoice. The General tab allows you to set the Preparer and Prepared for information, and to enable links. The Images tab allows you to import graphics into the style sheet. The Tables tab allows you to adjust the spacing around the tables which make up the invoice.</para>
- <para>To include a company logo, banner heading and background image, use your favorite graphics application such as The Gimp or OpenOffice Draw to save the images in either GIF or PNG format. Then import them into the style sheet using the Images tab.</para>
+ <listitem>
+ <para><guilabel>Payment Information - Invoice</guilabel> - the invoice
+ for which payment was received. When you select an invoice, the
+ <guilabel>Amount</guilabel> field is set to total due for the selected
+ invoice.</para>
+ </listitem>
- <para>Below is an example that imports all three types of images.</para>
+ <listitem>
+ <para><guilabel>Payment Information - Date</guilabel> - the date you
+ you received payment.</para>
+ </listitem>
- <screenshot id="bus-ar-invoicechange2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoicechange2.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>HTML Style Sheets example</phrase>
- </textobject>
- <caption>
- <para>The HTML Style Sheets window with an example Background Tile, Heading Banner, and Logo.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <listitem>
+ <para><guilabel>Payment Information - Amount</guilabel> - the amount
+ of money received.</para>
+ </listitem>
- <para>The images are placed in the invoice as follows. The <guilabel>Background Tile</guilabel> is tiled to become the background image, the <guilabel>Heading Banner</guilabel> goes to above the invoice text, and the <guilabel>Logo</guilabel> is placed in the upper left corner of the invoice to the left of the Heading Banner. You will probably have to try a few different sized images until you get the invoices to print nicely. Some sizing suggestions are that the Logo should be 1 square cm (~0.5 inch), and the Heading Banner should be 15 cm (~6 inches) wide and 1 cm (~0.5 inch) tall.</para>
+ <listitem>
+ <para><guilabel>Payment Information - Num</guilabel> - the check
+ number.</para>
+ </listitem>
- <para>With the style sheet configured, when you print the invoice, you select the style sheet to use from the <guimenu>Options</guimenu> menu. Below is the resultant invoice after applying the style sheet demonstrated above.</para>
+ <listitem>
+ <para><guilabel>Payment Information - Memo</guilabel> - any comments
+ about this payment.</para>
+ </listitem>
- <screenshot id="bus-ar-invoicechange3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/bus_ar_invoicechange3.png"
- srccredit="Jon Lapham" format="PNG"></imagedata>
- </imageobject>
- <textobject>
- <phrase>HTML Style Sheets example</phrase>
- </textobject>
- <caption>
- <para>The hideous invoice which results from the graphics selected in the style sheet.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <listitem>
+ <para><guilabel>Post To</guilabel> - the A/Receivable account to which
+ to post this transaction.</para>
+ </listitem>
+ <listitem>
+ <para><guilabel>Transfer Account</guilabel> - the account where the
+ money will be deposited (a checking account for example).</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>Below is the GnuCash Accounts Receivable payment window.</para>
+
+ <screenshot id="bus-ar-payment">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_payment.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Process Payment</phrase>
+ </textobject>
+
+ <caption><para>Process Payment Window </para></caption>
+ </mediaobject>
+ </screenshot>
</sect1>
- </chapter>
+ <sect1 id="bus-ar-invoicechange">
+ <title>Changing the Invoice Appearance</title>
+
+ <para>The default Invoice style, as shown in <xref
+ linkend="bus-ar-invoiceprint2" />, is fairly barren. The default invoice
+ style leaves the top part of the form blank, so you can print on company
+ letterhead paper. There are some things you can do to change invoice
+ appearance.</para>
+
+ <para>Use <guimenu>File</guimenu> -> <guimenu>Properties</guimenu> to
+ enter your company name and address, which is printed on the right side of
+ invoices.</para>
+
+ <para>To add a customized background, heading banner or logo to invoices,
+ modify the invoice style sheets. To do this, go to <guimenu>Edit</guimenu>
+ -> <guimenu>Style Sheets</guimenu> and make a <guilabel>New</guilabel>
+ style sheet. You will see a window like this:</para>
+
+ <screenshot id="bus-ar-invoicechange1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoicechange1.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>New Style Sheet Window</phrase>
+ </textobject>
+
+ <caption><para>The New Style Sheet window.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>You must select the <guilabel>Fancy</guilabel> style sheet template,
+ and choose a name for your new style sheet. When you click the
+ <guilabel>OK</guilabel> button, the HTML Style Sheet editor window is
+ displayed. This window contains four tabs, Colors, General, Images, and
+ Tables. The Colors tab allows you to change the colors of various sections
+ of the invoice. The General tab allows you to set the Preparer and
+ Prepared for information, and to enable links. The Images tab allows you
+ to import graphics into the style sheet. The Tables tab allows you to
+ adjust the spacing around the tables which make up the invoice.</para>
+
+ <para>To include a company logo, banner heading and background image, use
+ your favorite graphics application such as The Gimp or OpenOffice Draw to
+ save the images in either GIF or PNG format. Then import them into the
+ style sheet using the Images tab.</para>
+
+ <para>Below is an example that imports all three types of images.</para>
+
+ <screenshot id="bus-ar-invoicechange2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoicechange2.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>HTML Style Sheets example</phrase>
+ </textobject>
+
+ <caption><para>The HTML Style Sheets window with an example Background
+ Tile, Heading Banner, and Logo.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The images are placed in the invoice as follows. The
+ <guilabel>Background Tile</guilabel> is tiled to become the background
+ image, the <guilabel>Heading Banner</guilabel> goes to above the invoice
+ text, and the <guilabel>Logo</guilabel> is placed in the upper left corner
+ of the invoice to the left of the Heading Banner. You will probably have
+ to try a few different sized images until you get the invoices to print
+ nicely. Some sizing suggestions are that the Logo should be 1 square cm
+ (~0.5 inch), and the Heading Banner should be 15 cm (~6 inches) wide and 1
+ cm (~0.5 inch) tall.</para>
+
+ <para>With the style sheet configured, when you print the invoice, you
+ select the style sheet to use from the <guimenu>Options</guimenu> menu.
+ Below is the resultant invoice after applying the style sheet demonstrated
+ above.</para>
+
+ <screenshot id="bus-ar-invoicechange3">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/bus_ar_invoicechange3.png" format="PNG"
+ srccredit="Patrick Schweiger" />
+ </imageobject>
+
+ <textobject>
+ <phrase>HTML Style Sheets example</phrase>
+ </textobject>
+
+ <caption><para>The hideous invoice which results from the graphics
+ selected in the style sheet.</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect1>
+</chapter>
\ No newline at end of file
Modified: gnucash-docs/trunk/guide/C/ch_capgain.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_capgain.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_capgain.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,255 +1,530 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
+ Version: 1.9.0
+ Last modified: April 24th 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
Chris Lyttle <chris at wilddev.net>
Author:
Jon Lapham <lapham at extracta.com.br>
+ Updated Bengt Thuree <bengt at thuree.com>
Originally designed by Carol Champagne.
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter9">
- <title>Capital Gains</title>
- <para>This chapter will present some of the techniques used to keep track of the unrealized and realized gains and losses, better known as capital gains and losses.</para>
+<chapter id="chapter_capgain">
+ <title>Capital Gains</title>
- <sect1 id="capgain_concepts1">
- <title>Basic Concepts</title>
- <para>This chapter will present some of the techniques used to keep track of the unrealized and realized gains and losses, better known as capital gains and losses.</para>
- <para>
-Certain resellable assets can change value over time, such as stocks, bonds, houses, or cars. Some assets (eg: a stock) could increase in value, some (eg: a car) could decrease in value. It is important to be able to track some of these time-dependent asset valuations, this chapter will show you how.
- </para>
- <para>
-Probably everything you own will increase or decrease in value over time. So, the question is for which of these assets should you track this changing value? The simple answer is that you only need to track this for items which could be sold for cash in the future or which relate to taxation.
- </para>
- <para>
-Consumable and disposable items (eg: food, gas for your car, or printer paper) are obviously not involved. Thus, even though the new clothes you recently bought will certainly depreciate, you would not want to track this depreciation since you have no intention of reselling the clothes and there is no tax implications to the depreciation on clothing. So, for this example, the purchase of new clothes should be recorded as a pure expense... you spent the money, and it is gone.
- </para>
- <para>
-Asset appreciation occurs when something you own increases in value over time. When you own as asset which has increased in value, the difference between the original purchase price and the new value is known as <emphasis>unrealized gains</emphasis>. When you sell the asset, the profit you earn is known as <emphasis>realized gains</emphasis> or <emphasis>capital gains</emphasis>. An example of an asset from which you could have unrealized gains, and eventually capital gains, is stock in a publicly traded company.
- </para>
- </sect1>
+ <para>This chapter will present some of the techniques used to keep track of
+ the unrealized and realized gains and losses, better known as capital gains
+ and losses.</para>
- <sect1 id="capgain_value1">
- <title>Estimating Valuation</title>
- <para>
-As mentioned in the introduction to this chapter, capital gains are the profits received from the same of an asset. This section will describe how to record capital gains in GnuCash.
- </para>
- <para>
-The accounting methods for handling asset appreciation differs somewhat from depreciation because typically you are only concerned with the moment you sell the asset and realize the capital gains. This is opposed to the continuous nature of tracking depreciation. Capital gains are an important subject in the world of taxation, because governments tend to be quite interested in taxing capital gains in one manner or another.
- </para>
- <note>
- <para>
-As always, there are exceptions. If you hold a bond that pays all of its interest at maturity, tax authorities often require that you recognize interest each year, and refuse this to be treated as a capital gain. Consult the appropriate tax codes to determine the preferred treatment for each type of asset you have which may be affected by capital gains taxes.
- </para>
- </note>
- <para>
-Estimating the increasing value of assets is generally not simple, because often it is difficult to know its exact value until the moment it is sold.
- </para>
- <para>
-Securities traded daily on open markets such as stock exchanges are possibly the easiest type of asset to predict the value of, and selling the asset at market prices may be as simple as calling a broker and issuing a Market Order. On the other hand, estimating the value of a house is more difficult. Homes are sold less often than stocks, and the sales tend to involve expending considerable effort and negotiations, which means that estimates are likely to be less precise. Similarly, selling a used automobile involves a negotiation process that makes pricing a bit less predictable.
- </para>
- <para>
-Values of collectible objects such as jewelry, works of art, baseball cards, and "Beanie Babies" are even harder to estimate. The markets for such objects are much less open than the securities markets and less open than the housing market. Worse still are one-of-a-kind assets. Factories often contain presses and dies customized to build a very specific product that cost tens or hundreds of thousands of dollars; this equipment may be worthless outside of that very specific context. In such cases, several conflicting values might be attached to the asset, none of them unambiguously correct.
- </para>
- <para>
-The general rule of thumb in accounting for estimating unrealized gains (or loses) is that you should only revalue assets such as stocks which are readily sellable and for which there are very good estimates of the value. For all other assets, it is better to simply wait until you sell them, at which time you can exactly determine the capital gains. Of course, there is no hard rule on this, and in fact different accountants may prefer to do this differently.
- </para>
+ <sect1 id="capgain_concepts1">
+ <title>Basic Concepts</title>
+
+ <para>This chapter will present some of the techniques used to keep track
+ of the unrealized and realized gains and losses, better known as capital
+ gains and losses.</para>
+
+ <para>Certain resellable assets can change value over time, such as
+ stocks, bonds, houses, or cars. Some assets (eg: a stock) could increase
+ in value, some (eg: a car) could decrease in value. It is important to be
+ able to track some of these time-dependent asset valuations, this chapter
+ will show you how.</para>
+
+ <para>Probably everything you own will increase or decrease in value over
+ time. So, the question is for which of these assets should you track this
+ changing value? The simple answer is that you only need to track this for
+ items which could be sold for cash in the future or which relate to
+ taxation.</para>
+
+ <para>Consumable and disposable items (eg: food, gas for your car, or
+ printer paper) are obviously not involved. Thus, even though the new
+ clothes you recently bought will certainly depreciate, you would not want
+ to track this depreciation since you have no intention of reselling the
+ clothes and there is no tax implications to the depreciation on clothing.
+ So, for this example, the purchase of new clothes should be recorded as a
+ pure expense... you spent the money, and it is gone.</para>
+
+ <para>Asset appreciation occurs when something you own increases in value
+ over time. When you own an asset which has increased in value, the
+ difference between the original purchase price and the new value is known
+ as <emphasis>unrealized gains</emphasis>. When you sell the asset, the
+ profit you earn is known as <emphasis>realized gains</emphasis> or
+ <emphasis>capital gains</emphasis>. An example of an asset from which you
+ could have unrealized gains, and eventually capital gains, is stock in a
+ publicly traded company.</para>
</sect1>
- <sect1 id="capgain_accounts1">
- <title>Account Setup</title>
- <para>
-As with most accounting practices, there are a number of different ways to setup capital gains accounts. We will present here a general method which should be flexible enough to handle most situations. The first account you will need is an <emphasis>Asset Cost</emphasis> account (GnuCash account type "asset"), which is simply a place where you record the original purchase of the asset. Usually this purchase is accomplished by a transaction from your bank account.
- </para>
- <para>
-In order to keep track of the appreciation of the asset, you will need three accounts. The first is an <emphasis>Unrealized Gains</emphasis> asset account in which to collect the sum of all of the appreciation amounts. The Unrealized Gains asset account is balanced by a <emphasis>Unrealized Gains</emphasis> income account, in which all periodic appreciation income is recorded. Finally, another income account is necessary, called a <emphasis>Realized Gains</emphasis> in which you record the actual capital gains upon selling the asset.
- </para>
- <para>
-Below is a generic account hierarchy for tracking the appreciation of 2 assets, ITEM1 and ITEM2. The "Assets:ITEM1:Cost" accounts are balanced by the "Assets:Bank" account, the "Assets:ITEM?:Unrealized Gains" accounts are balanced by the "Income:Unrealized Gains" account.
- </para>
- <literallayout>
+ <sect1 id="capgain_value1">
+ <title>Estimating Valuation</title>
+
+ <para>As mentioned in the introduction to this chapter, capital gains are
+ the profits received from the same of an asset. This section will describe
+ how to record capital gains in GnuCash.</para>
+
+ <para>The accounting methods for handling asset appreciation differs
+ somewhat from depreciation because typically you are only concerned with
+ the moment you sell the asset and realize the capital gains. This is
+ opposed to the continuous nature of tracking depreciation. Capital gains
+ are an important subject in the world of taxation, because governments
+ tend to be quite interested in taxing capital gains in one manner or
+ another.</para>
+
+ <note>
+ <para>As always, there are exceptions. If you hold a bond that pays all
+ of its interest at maturity, tax authorities often require that you
+ recognize interest each year, and refuse this to be treated as a capital
+ gain. Consult the appropriate tax codes to determine the preferred
+ treatment for each type of asset you have which may be affected by
+ capital gains taxes.</para>
+ </note>
+
+ <para>Estimating the increasing value of assets is generally not simple,
+ because often it is difficult to know its exact value until the moment it
+ is sold.</para>
+
+ <para>Securities traded daily on open markets such as stock exchanges are
+ possibly the easiest type of asset to predict the value of, and selling
+ the asset at market prices may be as simple as calling a broker and
+ issuing a Market Order. On the other hand, estimating the value of a house
+ is more difficult. Homes are sold less often than stocks, and the sales
+ tend to involve expending considerable effort and negotiations, which
+ means that estimates are likely to be less precise. Similarly, selling a
+ used automobile involves a negotiation process that makes pricing a bit
+ less predictable.</para>
+
+ <para>Values of collectible objects such as jewelry, works of art,
+ baseball cards, and "Beanie Babies" are even harder to estimate. The
+ markets for such objects are much less open than the securities markets
+ and less open than the housing market. Worse still are one-of-a-kind
+ assets. Factories often contain presses and dies customized to build a
+ very specific product that cost tens or hundreds of thousands of dollars;
+ this equipment may be worthless outside of that very specific context. In
+ such cases, several conflicting values might be attached to the asset,
+ none of them unambiguously correct.</para>
+
+ <para>The general rule of thumb in accounting for estimating unrealized
+ gains (or loses) is that you should only revalue assets such as stocks
+ which are readily sellable and for which there are very good estimates of
+ the value. For all other assets, it is better to simply wait until you
+ sell them, at which time you can exactly determine the capital gains. Of
+ course, there is no hard rule on this, and in fact different accountants
+ may prefer to do this differently.</para>
+ </sect1>
+
+ <sect1 id="capgain_accounts1">
+ <title>Account Setup</title>
+
+ <para>As with most accounting practices, there are a number of different
+ ways to setup capital gains accounts. We will present here a general
+ method which should be flexible enough to handle most situations. The
+ first account you will need is an <emphasis>Asset Cost</emphasis> account
+ (GnuCash account type "asset"), which is simply a place where you record
+ the original purchase of the asset. Usually this purchase is accomplished
+ by a transaction from your bank account.</para>
+
+ <para>In order to keep track of the appreciation of the asset, you will
+ need three accounts. The first is an <emphasis>Unrealized Gains</emphasis>
+ asset account in which to collect the sum of all of the appreciation
+ amounts. The Unrealized Gains asset account is balanced by a
+ <emphasis>Unrealized Gains</emphasis> income account, in which all
+ periodic appreciation income is recorded. Finally, another income account
+ is necessary, called a <emphasis>Realized Gains</emphasis> in which you
+ record the actual capital gains upon selling the asset.</para>
+
+ <para>Below is a generic account hierarchy for tracking the appreciation
+ of 2 assets, ITEM1 and ITEM2. The "Assets:Fixed Assets:ITEM1:Cost" accounts are
+ balanced by the "Assets:Current Assets:Savings Account" account,
+ the "Assets:Fixed Assets:ITEM1:Unrealized Gains"
+ accounts are balanced by the "Income:Unrealized Gains" account (similar for ITEM2).</para>
+
+ <literallayout>
-Assets
- -ITEM1
- -Cost
- -Unrealized Gain
- -ITEM2
- -Cost
- -Unrealized Gain
- -Bank
+ -Current Assets
+ -Savings Account
+ -Fixed Assets
+ -ITEM1
+ -Cost
+ -Unrealized Gain
+ -ITEM2
+ -Cost
+ -Unrealized Gain
-Income
+ -Realized Gains
-Unrealized Gains
- -Realized Gains
</literallayout>
</sect1>
- <sect1 id="capgain_example1">
- <title>Example</title>
+ <sect1 id="capgain_example1">
+ <title>Example</title>
- <para>
-Let's suppose you buy an asset expected to increase in value, say a Degas painting, and want to track this. (The insurance company will care about this, even if nobody else does.)
- </para>
+ <para>Let's suppose you buy an asset expected to increase in value, say a
+ Degas painting, and want to track this. (The insurance company will care
+ about this, even if nobody else does.)</para>
- <para>
-Start with an account hierarchy similar to than shown in the previous section, but replace "ITEM1" with "Degas" and you can remove the "ITEM2" accounts. We will assume that the Degas painting had an initial value of one hundred thousand dollars. Begin by giving your self $100000 in the bank and then transferring that from your bank account to your "Asset:Degas" account (the asset purchase transaction). You should now have a main account window which appears like this:
- </para>
- <screenshot id="capgain_appmain">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/capgain_appmain.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Asset Appreciation Main Window</phrase>
- </textobject>
- <caption>
- <para>The asset appreciation example main window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <para>Start with an account hierarchy similar to than shown in <xref
+ linkend="capgain_accounts1" />, but replace "ITEM1" with "Degas" and you
+ can remove the "ITEM2" accounts. We will assume that the Degas painting
+ had an initial value of one hundred thousand dollars. Begin by giving your
+ self $100,000 in the bank and then transferring that from your bank
+ account to your "Asset:Fixed Assets:Degas:Cost" account (the asset
+ purchase transaction). You should now have a main account window which
+ appears like this:</para>
- <sect2 id="capgain_exampleunrealized2">
- <title>Unrealized Gains</title>
+ <screenshot id="capgain_appmain">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/capgain_appmain.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <para>
-A month later, you have reason to suspect that the value of your painting has increased by $10000 (an unrealized gain). In order to record this you transfer $10000 from your Accrued Gains income account to your asset Unrealized Gains account. Your main window will resemble this:
- </para>
- <screenshot id="capgain_app2main">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/capgain_app2main.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Asset Appreciation Main Window</phrase>
- </textobject>
- <caption>
- <para>This image shows the asset appreciation main window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <textobject>
+ <phrase>Asset Appreciation Main Window</phrase>
+ </textobject>
- </sect2>
+ <caption><para>The asset appreciation example main window
+ </para></caption>
+ </mediaobject>
+ </screenshot>
- <sect2 id="capgain_examplesell2">
- <title>Selling</title>
- <para>
-Let's suppose another month later prices for Degas paintings have gone up some more, in this case about $20000, you estimate. You duly record the $20000 as an unrealized income like above, then decide to sell the painting.
- </para>
- <para>
-Three possibilities arise. You may have <emphasis>accurately estimated</emphasis> the unrealized gain, <emphasis>underestimated</emphasis> the unrealized gain, or <emphasis>overestimated</emphasis> the unrealized gain. </para>
- <orderedlist>
- <listitem>
- <para>
-<emphasis>Accurate estimation</emphasis> of unrealized gain.
- </para>
- <para>
-Your optimistic estimate of the painting's value was correct. First you must record that the profits made are now realized gains, not unrealized gains. Do this by transferring the income from the "Income:Unrealized Gains" to the "Income:Realized Gains" account.
- </para>
- <para>
-Secondly, you must credit your bank account with the selling price of the painting. This money comes directly from your "Asset:Degas" sub-accounts. Transfer the full "Asset:Degas:Cost" value into "Asset:Bank", and the full "Asset:Degas:Unrealized Gain" into "Asset:Bank".
- </para>
- <para>
-These transactions should now appear as follows:
- </para>
- <para>
- <table>
- <title>Turning an Accrued Gain into a Realized Gain</title>
- <tgroup cols="4">
- <tbody>
- <row>
- <entry><emphasis>Account</emphasis></entry>
- <entry><emphasis>Transfer to</emphasis></entry>
- <entry><emphasis>Transaction Amount</emphasis></entry>
- <entry><emphasis>Account Total</emphasis></entry>
- </row>
- <row>
- <entry>Income:Unrealized Gains</entry>
- <entry>Income:Realized Gains</entry>
- <entry>$30000</entry>
- <entry>$0</entry>
- </row>
- <row>
- <entry>Asset:Degas:Cost</entry>
- <entry>Asset:Bank</entry>
- <entry>$100000</entry>
- <entry>$0</entry>
- </row>
- <row>
- <entry>Asset:Degas:Unrealized Gains</entry>
- <entry>Asset:Bank</entry>
- <entry>$30000</entry>
- <entry>$0</entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- </para>
- <para>
-This leaves the "Asset:Bank" account with a total of $130000 and "Income:Realized Gains" with a total of $30000.
- </para>
- </listitem>
+ <sect2 id="capgain_exampleunrealized2">
+ <title>Unrealized Gains</title>
- <listitem>
- <para>
-<emphasis>Under estimation</emphasis> of unrealized gain.
- </para>
- <para>
-You were over-optimistic about the value of the painting. Instead of the $130000 you thought the painting was worth are only offered $120000. But you still decide to sell, because you value $120000 more than you value the painting. The numbers change a little bit, but not too dramatically.
- </para>
- <para>
-Under construction
- </para>
- </listitem>
+ <para>A month later, you have reason to suspect that the value of your
+ painting has increased by $10,000 (an unrealized gain). In order to
+ record this you transfer $10,000 from your Accrued Gains income account
+ (Income:Unrealized Gains) to your asset Unrealized Gains account
+ (Assets:Fixed Assets:Degas:Unrealized Gain). Your main window will
+ resemble this:</para>
- <listitem>
- <para>
-<emphasis>Over estimation</emphasis> of unrealized gain.
- </para>
- <para>
-You manage to sell your painting for more than you thought in your wildest dreams. The extra value is, again, recorded as a gain, i.e. an income.
- </para>
- <para>
-Under Construction
- </para>
- </listitem>
- </orderedlist>
- </sect2>
-
- <sect2 id="capgain_examplecaution2">
- <title>Caution about Valuation</title>
- <para>
-As we see in this example, for non-financial assets, it may be difficult to correctly estimate the ``true'' value of an asset. It is quite easy to count yourself rich based on questionable estimates that do not reflect "money in the bank."
- </para>
- <para>
-When dealing with appreciation of assets,
- </para>
- <itemizedlist>
- <listitem>
- <para>
-Be careful with your estimation of values. Do not indulge in wishful thinking.
- </para>
- </listitem>
- <listitem>
- <para>
-Never, ever, count on money you do not have in your bank or as cash. Until you have actually sold your asset and got the money, any numbers on paper (or magnetic patterns on your hard disk) are merely that. If you could realistically convince a banker to lend you money, using the assets as collateral, that is a pretty reasonable evidence that the assets have value, as lenders are professionally suspicious of dubious overestimations of value. Be aware: all too many companies that appear "profitable" on paper go out of business as a result of running out of cash, precisely because "valuable assets" were not the same thing as cash.
- </para>
- </listitem>
- </itemizedlist>
- </sect2>
+ <screenshot id="capgain_app2main">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/capgain_app2main.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Asset Appreciation Main Window</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after unrealized
+ gain</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="capgain_examplesell2">
+ <title>Selling</title>
+
+ <para>Let's suppose another month later prices for Degas paintings have
+ gone up some more, in this case about $20,000, you estimate. You duly
+ record the $20,000 as an unrealized income like above, then decide to
+ sell the painting.</para>
+
+ <para>Three possibilities arise. You may have <emphasis>accurately
+ estimated</emphasis> the unrealized gain,
+ <emphasis>underestimated</emphasis> the unrealized gain, or
+ <emphasis>overestimated</emphasis> the unrealized gain.</para>
+
+ <orderedlist>
+ <listitem>
+ <para><emphasis>Accurate estimation</emphasis> of unrealized
+ gain.</para>
+
+ <para>Your optimistic estimate of the painting's value was correct.
+ First you must record that the profits made are now realized gains,
+ not unrealized gains. Do this by transferring the income from the
+ "Income:Unrealized Gains" to the "Income:Realized Gains"
+ account.</para>
+
+ <para>Secondly, you must credit your bank account with the selling
+ price of the painting. This money comes directly from your
+ "Assets:Fixed Assets:Degas" sub-accounts. Transfer the full
+ "Assets:Fixed Assets:Degas:Cost" value into "Asset:Fixed
+ Assets:Savings Account", and the full "Assets:Fixed
+ Assets:Degas:Unrealized Gain" into "Asset:Fixed Assets:Savings
+ Account".</para>
+
+ <para>These transactions should now appear as follows:</para>
+
+ <para><table>
+ <title>Turning an Accrued Gain into a Realized Gain</title>
+
+ <tgroup cols="4">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Transfer to</emphasis></entry>
+
+ <entry><emphasis>Transaction Amount</emphasis></entry>
+
+ <entry><emphasis>Account Total</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Income:Unrealized Gains</entry>
+
+ <entry>Income:Realized Gains</entry>
+
+ <entry>$30,000</entry>
+
+ <entry>$0</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Cost</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$100,000</entry>
+
+ <entry>$0</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Unrealized Gains</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$30,000</entry>
+
+ <entry>$0</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <para>This leaves the "Asset:Fixed Assets:Savings Account" account
+ with a total of $130000 and "Income:Realized Gains" with a total of
+ $30000.</para>
+
+ <screenshot id="capgain_app3main">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/capgain_app3main.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Asset Appreciation Main Window</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after realized
+ gain</para></caption>
+ </mediaobject>
+ </screenshot>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Under estimation</emphasis> of unrealized
+ gain.</para>
+
+ <para>You were over-optimistic about the value of the painting.
+ Instead of the $130000 you thought the painting was worth are only
+ offered $120000. But you still decide to sell, because you value
+ $120000 more than you value the painting. The numbers change a
+ little bit, but not too dramatically.</para>
+
+ <para>The transactions should now appear as follows (observe the
+ last transaction which balances the Unrealized Gains
+ accounts):</para>
+
+ <para><table>
+ <title>Turning an Accrued Gain into a Realized Gain</title>
+
+ <tgroup cols="4">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Transfer to</emphasis></entry>
+
+ <entry><emphasis>Transaction Amount</emphasis></entry>
+
+ <entry><emphasis>Account Total</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Income:Unrealized Gains</entry>
+
+ <entry>Income:Realized Gains</entry>
+
+ <entry>$20,000</entry>
+
+ <entry>$10,000</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Cost</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$100,000</entry>
+
+ <entry>$0</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Unrealized Gains</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$20,000</entry>
+
+ <entry>$10,000</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Unrealized Gains</entry>
+
+ <entry>Income:Unrealized Gains</entry>
+
+ <entry>$10,000</entry>
+
+ <entry>$0</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <para>This leaves the "Asset:Fixed Assets:Savings Account" account
+ with a total of $120000 and "Income:Realized Gains" with a total of
+ $20000.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Over estimation</emphasis> of unrealized
+ gain.</para>
+
+ <para>You manage to sell your painting for more than you thought in
+ your wildest dreams ($150,000). The extra value is, again, recorded
+ as a gain, i.e. an income.</para>
+
+ <para>The transactions should now appear as follows (observe the
+ last transaction which balances the Unrealized Gains
+ accounts):</para>
+
+ <para><table>
+ <title>Turning an Accrued Gain into a Realized Gain</title>
+
+ <tgroup cols="4">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Transfer to</emphasis></entry>
+
+ <entry><emphasis>Transaction Amount</emphasis></entry>
+
+ <entry><emphasis>Account Total</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Income:Unrealized Gains</entry>
+
+ <entry>Income:Realized Gains</entry>
+
+ <entry>$50,000</entry>
+
+ <entry>$-20,000</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Cost</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$100,000</entry>
+
+ <entry>$0</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:Degas:Unrealized Gains</entry>
+
+ <entry>Asset:Fixed Assets:Savings Account</entry>
+
+ <entry>$50,000</entry>
+
+ <entry>$-20,000</entry>
+ </row>
+
+ <row>
+ <entry>Income:Unrealized Gains</entry>
+
+ <entry>Assets:Fixed Assets:Degas:Unrealized Gains</entry>
+
+ <entry>$20,000</entry>
+
+ <entry>$0</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <para>This leaves the "Asset:Fixed Assets:Savings Account" account
+ with a total of $150,000 and "Income:Realized Gains" with a total of
+ $50,000.</para>
+ </listitem>
+ </orderedlist>
+ </sect2>
+
+ <sect2 id="capgain_examplecaution2">
+ <title>Caution about Valuation</title>
+
+ <para>As we see in this example, for non-financial assets, it may be
+ difficult to correctly estimate the ``true'' value of an asset. It is
+ quite easy to count yourself rich based on questionable estimates that
+ do not reflect "money in the bank."</para>
+
+ <para>When dealing with appreciation of assets,</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Be careful with your estimation of values. Do not indulge in
+ wishful thinking.</para>
+ </listitem>
+
+ <listitem>
+ <para>Never, ever, count on money you do not have in your bank or as
+ cash. Until you have actually sold your asset and got the money, any
+ numbers on paper (or magnetic patterns on your hard disk) are merely
+ that. If you could realistically convince a banker to lend you
+ money, using the assets as collateral, that is a pretty reasonable
+ evidence that the assets have value, as lenders are professionally
+ suspicious of dubious overestimations of value. Be aware: all too
+ many companies that appear "profitable" on paper go out of business
+ as a result of running out of cash, precisely because "valuable
+ assets" were not the same thing as cash.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
</sect1>
<sect1 id="capgain_tax1">
- <title>Taxation</title>
- <para>
-Taxation policies vary considerably between countries, so it is virtually impossible to say anything that will be universally useful. However, it is common for income generated by capital gains to not be subject to taxation until the date that the asset is actually sold, and sometimes not even then. North American home owners usually find that when they sell personal residences, capital gains that occur are exempt from taxation. It appears that other countries treat sale of homes differently, taxing people on such gains. German authorities, for example, tax those gains only if you owned the property for less than ten years.
- </para>
- <para>
-Chris Browne has a story from his professional tax preparation days where a family sold a farm, and expected a considerable tax bill that turned out to be virtually nil due to having owned the property before 1971 (wherein lies a critical "Valuation Day" date in Canada) and due to it being a dairy farm, with some really peculiar resulting deductions. The point of this story is that while the presentation here is fairly simple, taxation often gets terribly complicated...
- </para>
- </sect1>
+ <title>Taxation</title>
- </chapter>
+ <para>Taxation policies vary considerably between countries, so it is
+ virtually impossible to say anything that will be universally useful.
+ However, it is common for income generated by capital gains to not be
+ subject to taxation until the date that the asset is actually sold, and
+ sometimes not even then. North American home owners usually find that when
+ they sell personal residences, capital gains that occur are exempt from
+ taxation. It appears that other countries treat sale of homes differently,
+ taxing people on such gains. German authorities, for example, tax those
+ gains only if you owned the property for less than ten years.</para>
+
+ <para>Chris Browne has a story from his professional tax preparation days
+ where a family sold a farm, and expected a considerable tax bill that
+ turned out to be virtually nil due to having owned the property before
+ 1971 (wherein lies a critical "Valuation Day" date in Canada) and due to
+ it being a dairy farm, with some really peculiar resulting deductions. The
+ point of this story is that while the presentation here is fairly simple,
+ taxation often gets terribly complicated...</para>
+ </sect1>
+</chapter>
Modified: gnucash-docs/trunk/guide/C/ch_cbook.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_cbook.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_cbook.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -100,7 +100,7 @@
Dialog when you set up taxable income accounts. Some types of income,
such as gift income, may not be considered taxable, so check the
appropriate tax rules to determine what is taxable. For ways to track
- capital gains income, refer to <xref linkend="chapter9"></xref>.</para>
+ capital gains income, refer to <xref linkend="chapter_capgain"></xref>.</para>
</tip>
<para>Before you start entering paycheck deposits, decide how much detail
@@ -427,29 +427,6 @@
</screenshot>
</listitem>
- <listitem>
- <para>To emphasize again about GnuCash's double entry method of book
- keeping, lets check how the <guilabel>Expenses:Groceries</guilabel>
- looks like after we have reconciled.</para>
-
- <screenshot id="cbook-reconciledGrocery">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/cbook_reconciledGrocery.png"
- format="PNG" srccredit="Bengt Thuree" />
- </imageobject>
-
- <textobject>
- <phrase>The Grocery Account Register</phrase>
- </textobject>
-
- <caption>
- <para>This image shows the Grocery Account Register after
- reconciliation.</para>
- </caption>
- </mediaobject>
- </screenshot>
- </listitem>
</orderedlist>
</sect2>
Modified: gnucash-docs/trunk/guide/C/ch_dep.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_dep.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_dep.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,376 +1,602 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
+ Version: 1.9.0
+ Last modified: April 16th 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
Chris Lyttle <chris at wilddev.net>
Author:
Jon Lapham <lapham at extracta.com.br>
+ Updated Bengt Thuree <bengt at thuree.com>
Originally designed by Carol Champagne.
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter11">
- <title>Depreciation</title>
- <para>This chapter will introduce the concept of depreciation in accounting and give some real life examples for using it.</para>
+<chapter id="chapter_dep">
+ <title>Depreciation</title>
- <sect1 id="dep_concepts1">
- <title>Basic Concepts</title>
- <para>Depreciation is the accounting method for expensing capital purchases over time. There are two reasons that you may want to record depreciation; you are doing bookkeeping for your own personal finances and would like to keep track of your net worth, or you are doing bookkeeping for a small busines and need to produce a financial statement from which you will prepare your tax return.</para>
+ <para>This chapter will introduce the concept of depreciation in accounting
+ and give some real life examples for using it.</para>
- <para>The method of recording depreciation is the same in either case. but the end goal is different. This section will discuss the differences between the two. But first, some terminology.</para>
+ <sect1 id="dep_concepts1">
+ <title>Basic Concepts</title>
- <itemizedlist>
- <listitem>
- <para><emphasis>Accumulated depreciation</emphasis> - the accumulated total of book depreciation taken over the life of the asset. This is accumulated in the depreciation account in the asset section.</para>
- </listitem>
- <listitem>
- <para><emphasis>Book depreciation</emphasis> - this is the amount of depreciation that you record in your financial statements per accounting period.</para>
- </listitem>
- <listitem>
- <para><emphasis>Fair market value</emphasis> - the amount for which an asset could be sold at a given time.</para>
- </listitem>
- <listitem>
- <para><emphasis>Net book value</emphasis> - this is the difference between the original cost and the depreciation taken to date.</para>
- </listitem>
- <listitem>
- <para><emphasis>Original cost</emphasis> - this is the amount that the asset cost you to purchase. It includes any cost to get the asset into a condition in which you can use it. For example - shipping, installation costs, special training.</para>
- </listitem>
- <listitem>
- <para><emphasis>Salvage value</emphasis> - this is the value that you estimate the asset can be sold for at the end of it's useful life (to you).</para>
- </listitem>
- <listitem>
- <para><emphasis>Tax depreciation</emphasis> - this is the amount of depreciation that you take for income tax purposes.</para>
- </listitem>
- </itemizedlist>
+ <para>Depreciation is the accounting method for expensing capital
+ purchases over time. There are two reasons that you may want to record
+ depreciation; you are doing bookkeeping for your own personal finances and
+ would like to keep track of your net worth, or you are doing bookkeeping
+ for a small busines and need to produce a financial statement from which
+ you will prepare your tax return.</para>
- <sect2 id="dep_concepts_personal2">
- <title>Personal Finances</title>
- <para>Depreciation is used in personal finances to periodically lower an asset's value to give you an accurate estimation of your current net worth. For example, if you owned a car you could keep track of its current value by recording depreciation every year. To accomplish this, you record the original purchase as an asset, and then record a depreciation expense each year (See section 11.4 for an example). This would result in the net book value being approximately equal to the fair market value of the asset at the end of the year.</para>
+ <para>The method of recording depreciation is the same in either case. but
+ the end goal is different. This section will discuss the differences
+ between the two. But first, some terminology.</para>
- <para>Depreciation for personal finance has no tax implications, it is simple used to help you estimate your net worth. Because of this, there are no rules for how you estimate depreciation, use your best judgement.</para>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Accumulated depreciation</emphasis> - the accumulated
+ total of book depreciation taken over the life of the asset. This is
+ accumulated in the depreciation account in the asset section.</para>
+ </listitem>
- <para>For which assets should you estimate depreciation? Since the idea of depreciation for personal finances is to give you an estimate of your personal net worth, you need only track depreciation on assets of notable worth that you could potentially sell, such as a car or boat.</para>
+ <listitem>
+ <para><emphasis>Book depreciation</emphasis> - this is the amount of
+ depreciation that you record in your financial statements per
+ accounting period.</para>
+ </listitem>
- </sect2>
+ <listitem>
+ <para><emphasis>Fair market value</emphasis> - the amount for which an
+ asset could be sold at a given time.</para>
+ </listitem>
- <sect2 id="dep_concepts_business2">
- <title>Business</title>
+ <listitem>
+ <para><emphasis>Net book value</emphasis> - this is the difference
+ between the original cost and the depreciation taken to date.</para>
+ </listitem>
- <para>As opposed to personal finance where the goal is tracking personal worth, business is concerned with matching the expense of purchasing capital assets with the revenue generated by them. This is done through book depreciation. Businesses must also be concerned with local tax laws covering depreciation of assets. This is known as tax depreciation. The business is free to choose whatever scheme it wants to record book depreciation, but the scheme used for tax depreciation is fixed. More often than not this results in differences between book and tax depreciation, but steps can be taken to reduce these differences.</para>
+ <listitem>
+ <para><emphasis>Original cost</emphasis> - this is the amount that the
+ asset cost you to purchase. It includes any cost to get the asset into
+ a condition in which you can use it. For example - shipping,
+ installation costs, special training.</para>
+ </listitem>
- <para>Now, what purchases should be capitalized? If you expect something that you purchase to help you earn income for more than just the current year, then it should be capitalized. This includes things like land, buildings, equipment, automobiles, and computers - as long as they are used for business purposes. It does not include items that would be considered inventory. So if you made a purchase with the intent to resell the item, it should not be capitalized. </para>
+ <listitem>
+ <para><emphasis>Salvage value</emphasis> - this is the value that you
+ estimate the asset can be sold for at the end of it's useful life (to
+ you).</para>
+ </listitem>
- <para>In addition to the purchase of the asset itself, any costs associated with getting the asset into a condition so that you can use it should be capitalized. For example, if you buy a peice of equipment and it needs to be shipped from out of town, and then some electrical work needs to be done so you can plug the machine in, and some specialized training is needed so you know how to use the machine, all these costs would be included in the cost of the equipment.</para>
+ <listitem>
+ <para><emphasis>Tax depreciation</emphasis> - this is the amount of
+ depreciation that you take for income tax purposes.</para>
+ </listitem>
+ </itemizedlist>
- <para>You also need to know the estimated salvage value of the asset. Generally, this is assumed to be zero. The idea behind knowing the salvage value is that the asset will be depreciated untill the net book value (cost less depreciation) equals the salvage value. Then, when the asset is written off, you will not have a gain or loss resulting from the disposal of the asset.</para>
+ <sect2 id="dep_concepts_personal2">
+ <title>Personal Finances</title>
- <para>The last step is to determine the method of depreciation that you want to use. This will be discussed on the next few pages.</para>
+ <para>Depreciation is used in personal finances to periodically lower an
+ asset's value to give you an accurate estimation of your current net
+ worth. For example, if you owned a car you could keep track of its
+ current value by recording depreciation every year. To accomplish this,
+ you record the original purchase as an asset, and then record a
+ depreciation expense each year (See <xref linkend="dep_example1" /> for
+ an example). This would result in the net book value being approximately
+ equal to the fair market value of the asset at the end of the
+ year.</para>
- <note>
- <para>
-Warning: Be aware that different countries can have substantially different tax policies for depreciation; all that this document can really provide is some of the underlying ideas to help you apply your "favorite" tax/depreciation policies.
- </para>
- </note>
+ <para>Depreciation for personal finance has no tax implications, it is
+ simple used to help you estimate your net worth. Because of this, there
+ are no rules for how you estimate depreciation, use your best
+ judgement.</para>
- </sect2>
+ <para>For which assets should you estimate depreciation? Since the idea
+ of depreciation for personal finances is to give you an estimate of your
+ personal net worth, you need only track depreciation on assets of
+ notable worth that you could potentially sell, such as a car or
+ boat.</para>
+ </sect2>
+
+ <sect2 id="dep_concepts_business2">
+ <title>Business</title>
+
+ <para>As opposed to personal finance where the goal is tracking personal
+ worth, business is concerned with matching the expense of purchasing
+ capital assets with the revenue generated by them. This is done through
+ book depreciation. Businesses must also be concerned with local tax laws
+ covering depreciation of assets. This is known as tax depreciation. The
+ business is free to choose whatever scheme it wants to record book
+ depreciation, but the scheme used for tax depreciation is fixed. More
+ often than not this results in differences between book and tax
+ depreciation, but steps can be taken to reduce these differences.</para>
+
+ <para>Now, what purchases should be capitalized? If you expect something
+ that you purchase to help you earn income for more than just the current
+ year, then it should be capitalized. This includes things like land,
+ buildings, equipment, automobiles, and computers - as long as they are
+ used for business purposes. It does not include items that would be
+ considered inventory. So if you made a purchase with the intent to
+ resell the item, it should not be capitalized.</para>
+
+ <para>In addition to the purchase of the asset itself, any costs
+ associated with getting the asset into a condition so that you can use
+ it should be capitalized. For example, if you buy a peice of equipment
+ and it needs to be shipped from out of town, and then some electrical
+ work needs to be done so you can plug the machine in, and some
+ specialized training is needed so you know how to use the machine, all
+ these costs would be included in the cost of the equipment.</para>
+
+ <para>You also need to know the estimated salvage value of the asset.
+ Generally, this is assumed to be zero. The idea behind knowing the
+ salvage value is that the asset will be depreciated untill the net book
+ value (cost less depreciation) equals the salvage value. Then, when the
+ asset is written off, you will not have a gain or loss resulting from
+ the disposal of the asset.</para>
+
+ <para>The last step is to determine the method of depreciation that you
+ want to use. This will be discussed on the next few pages.</para>
+
+ <note>
+ <para>Warning: Be aware that different countries can have
+ substantially different tax policies for depreciation; all that this
+ document can really provide is some of the underlying ideas to help
+ you apply your "favorite" tax/depreciation policies.</para>
+ </note>
+ </sect2>
</sect1>
-
<sect1 id="dep_value1">
- <title>Estimating Valuation</title>
- <para>
-A central issue with depreciation is to determine how you will estimate the future value of the asset. Compared to the often uncertain estimates one has to do where appreciation of assets is concerned, we are on somewhat firmer ground here. Using sources listed below should make it fairly straight forward to estimate the future value of your depreciating assets.
- </para>
- <itemizedlist>
- <listitem>
- <para>
-<emphasis>Tax Codes:</emphasis> For businesses that want to use depreciation for tax purposes, governments tend to set up precise rules as to how you are required to calculate depreciation. Consult your local tax codes, which should explicitly state how to estimate depreciation.
- </para>
- </listitem>
- <listitem>
- <para>
-<emphasis>Car Blue Book:</emphasis> For automobiles, it is easy to look up in references such as "Blue Books" estimates of what an automobile should be worth after some period of time in the future. From this you will be able to develop a model of the depreciation.
- </para>
- </listitem>
- </itemizedlist>
- <sect2 id="dep_valueschemes2">
- <title>Depreciation Schemes</title>
- <para>A <emphasis>depreciation scheme</emphasis> is a mathematical model of how an asset will be expensed over time. For every asset which undergoes depreciation, you will need to decide on a depreciation scheme. An important point to keep in mind is that, for tax purposes, you will need to depreciate your assets at a certain rate. This is called tax depreciation. For financial statement purposes you are free to choose whatever method you want. This is book depreciation. Most small businesses use the same rate for tax and book depreciation. This way there is less of a difference between your net income on the financial statements and your taxable income.</para>
+ <title>Estimating Valuation</title>
- <para>This section will present 3 of the more popular depreciation schemes: <emphasis>linear</emphasis>, <emphasis>geometric</emphasis>, and <emphasis>sum of digits</emphasis>. To simplify the examples, we will assume the salvage value of the asset being depreciated is zero. If you choose to use a salvage value, you would stop depreciating the asset once the net book value equals the salvage value.</para>
+ <para>A central issue with depreciation is to determine how you will
+ estimate the future value of the asset. Compared to the often uncertain
+ estimates one has to do where appreciation of assets is concerned, we are
+ on somewhat firmer ground here. Using sources listed below should make it
+ fairly straight forward to estimate the future value of your depreciating
+ assets.</para>
- <orderedlist>
- <listitem>
- <para>
-<emphasis>Linear depreciation</emphasis> diminishes the value of an asset by a fixed amount each period until the net value is zero. This is the simplest calculation, as you estimate a useful lifetime, and simply divide the cost equally across that lifetime.
- </para>
- <para>
-Example: You have bought a computer for $1500 and wish to depreciate it over a period of 5 years. Each year the amount of depreciation is $300, leading to the following calculations:
- </para>
- <para>
- <table>
- <title>Linear Depreciation Scheme Example</title>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Year</emphasis></entry>
- <entry><emphasis>Depreciation</emphasis></entry>
- <entry><emphasis>Remaining Value</emphasis></entry>
- </row>
- <row>
- <entry>0</entry>
- <entry>-</entry>
- <entry>1500</entry>
- </row>
- <row>
- <entry>1</entry>
- <entry>300</entry>
- <entry>1200</entry>
- </row>
- <row>
- <entry>2</entry>
- <entry>300</entry>
- <entry>900</entry>
- </row>
- <row>
- <entry>3</entry>
- <entry>300</entry>
- <entry>600</entry>
- </row>
- <row>
- <entry>4</entry>
- <entry>300</entry>
- <entry>300</entry>
- </row>
- <row>
- <entry>5</entry>
- <entry>300</entry>
- <entry>0</entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- </para>
- </listitem>
- <listitem>
- <para>
-<emphasis>Geometric depreciation</emphasis> is depreciated by a fixed percentage of the asset value in the previous period. This is a front-weighted depreciation scheme, more depreciation being applied early in the period. In this scheme the value of an asset decreases exponentially leaving a value at the end that is larger than zero (i.e.: a resale value).
- </para>
- <para>
-Example: We take the same example as above, with an annual depreciation of 30%.
- </para>
- <para>
- <table>
- <title>Geometric Depreciation Scheme Example</title>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Year</emphasis></entry>
- <entry><emphasis>Depreciation</emphasis></entry>
- <entry><emphasis>Remaining Value</emphasis></entry>
- </row>
- <row>
- <entry>0</entry>
- <entry>-</entry>
- <entry>1500</entry>
- </row>
- <row>
- <entry>1</entry>
- <entry>450</entry>
- <entry>1050</entry>
- </row>
- <row>
- <entry>2</entry>
- <entry>315</entry>
- <entry>735</entry>
- </row>
- <row>
- <entry>3</entry>
- <entry>220.50</entry>
- <entry>514.50</entry>
- </row>
- <row>
- <entry>4</entry>
- <entry>154.35</entry>
- <entry>360.15</entry>
- </row>
- <row>
- <entry>5</entry>
- <entry>108.05</entry>
- <entry>252.10</entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- </para>
- <note>
- <para>
-Beware: Tax authorities may require (or allow) a larger percentage in the first period. On the other hand, in Canada, this is reversed, as they permit only a half share of "Capital Cost Allowance" in the first year. The result of this approach is that asset value decreases more rapidly at the beginning than at the end which is probably more realistic for most assets than a linear scheme. This is certainly true for automobiles.
- </para>
- </note>
- </listitem>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Tax Codes:</emphasis> For businesses that want to use
+ depreciation for tax purposes, governments tend to set up precise
+ rules as to how you are required to calculate depreciation. Consult
+ your local tax codes, which should explicitly state how to estimate
+ depreciation.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Sum of digits</emphasis> is a front-weighted depreciation scheme similar to the geometric depreciation, except that the value of the asset reaches zero at the end of the period. This is a front-weighted depreciation scheme, more depreciation being applied early in the period. This method is most often employed in Anglo/Saxon countries. Here is an illustration:
- </para>
- <para>
-Example: First you divide the asset value by the sum of the years of use, e.g. for our example from above with an asset worth $1500 that is used over a period of five years you get 1500/(1+2+3+4+5)=100. Depreciation and asset value are then calculated as follows:
- </para>
- <para>
- <table>
- <title>Sum of Digits Depreciation Scheme Example</title>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Year</emphasis></entry>
- <entry><emphasis>Depreciation</emphasis></entry>
- <entry><emphasis>Remaining Value</emphasis></entry>
- </row>
- <row>
- <entry>0</entry>
- <entry>-</entry>
- <entry>1500</entry>
- </row>
- <row>
- <entry>1</entry>
- <entry>100*5=500</entry>
- <entry>1000</entry>
- </row>
- <row>
- <entry>2</entry>
- <entry>100*4=400</entry>
- <entry>600</entry>
- </row>
- <row>
- <entry>3</entry>
- <entry>100*3=300</entry>
- <entry>300</entry>
- </row>
- <row>
- <entry>4</entry>
- <entry>100*2=200</entry>
- <entry>100</entry>
- </row>
- <row>
- <entry>5</entry>
- <entry>100*1=100</entry>
- <entry>0</entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- </para>
- </listitem>
- </orderedlist>
+ <listitem>
+ <para><emphasis>Car Blue Book:</emphasis> For automobiles, it is easy
+ to look up in references such as "Blue Books" estimates of what an
+ automobile should be worth after some period of time in the future.
+ From this you will be able to develop a model of the
+ depreciation.</para>
+ </listitem>
+ </itemizedlist>
- </sect2>
+ <sect2 id="dep_valueschemes2">
+ <title>Depreciation Schemes</title>
+
+ <para>A <emphasis>depreciation scheme</emphasis> is a mathematical model
+ of how an asset will be expensed over time. For every asset which
+ undergoes depreciation, you will need to decide on a depreciation
+ scheme. An important point to keep in mind is that, for tax purposes,
+ you will need to depreciate your assets at a certain rate. This is
+ called tax depreciation. For financial statement purposes you are free
+ to choose whatever method you want. This is book depreciation. Most
+ small businesses use the same rate for tax and book depreciation. This
+ way there is less of a difference between your net income on the
+ financial statements and your taxable income.</para>
+
+ <para>This section will present 3 of the more popular depreciation
+ schemes: <emphasis>linear</emphasis>, <emphasis>geometric</emphasis>,
+ and <emphasis>sum of digits</emphasis>. To simplify the examples, we
+ will assume the salvage value of the asset being depreciated is zero. If
+ you choose to use a salvage value, you would stop depreciating the asset
+ once the net book value equals the salvage value.</para>
+
+ <orderedlist>
+ <listitem>
+ <para><emphasis>Linear depreciation</emphasis> diminishes the value
+ of an asset by a fixed amount each period until the net value is
+ zero. This is the simplest calculation, as you estimate a useful
+ lifetime, and simply divide the cost equally across that
+ lifetime.</para>
+
+ <para>Example: You have bought a computer for $1500 and wish to
+ depreciate it over a period of 5 years. Each year the amount of
+ depreciation is $300, leading to the following calculations:</para>
+
+ <para><table>
+ <title>Linear Depreciation Scheme Example</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Year</emphasis></entry>
+
+ <entry><emphasis>Depreciation</emphasis></entry>
+
+ <entry><emphasis>Remaining Value</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>0</entry>
+
+ <entry>-</entry>
+
+ <entry>1500</entry>
+ </row>
+
+ <row>
+ <entry>1</entry>
+
+ <entry>300</entry>
+
+ <entry>1200</entry>
+ </row>
+
+ <row>
+ <entry>2</entry>
+
+ <entry>300</entry>
+
+ <entry>900</entry>
+ </row>
+
+ <row>
+ <entry>3</entry>
+
+ <entry>300</entry>
+
+ <entry>600</entry>
+ </row>
+
+ <row>
+ <entry>4</entry>
+
+ <entry>300</entry>
+
+ <entry>300</entry>
+ </row>
+
+ <row>
+ <entry>5</entry>
+
+ <entry>300</entry>
+
+ <entry>0</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Geometric depreciation</emphasis> is depreciated by
+ a fixed percentage of the asset value in the previous period. This
+ is a front-weighted depreciation scheme, more depreciation being
+ applied early in the period. In this scheme the value of an asset
+ decreases exponentially leaving a value at the end that is larger
+ than zero (i.e.: a resale value).</para>
+
+ <para>Example: We take the same example as above, with an annual
+ depreciation of 30%.</para>
+
+ <para><table>
+ <title>Geometric Depreciation Scheme Example</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Year</emphasis></entry>
+
+ <entry><emphasis>Depreciation</emphasis></entry>
+
+ <entry><emphasis>Remaining Value</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>0</entry>
+
+ <entry>-</entry>
+
+ <entry>1500</entry>
+ </row>
+
+ <row>
+ <entry>1</entry>
+
+ <entry>450</entry>
+
+ <entry>1050</entry>
+ </row>
+
+ <row>
+ <entry>2</entry>
+
+ <entry>315</entry>
+
+ <entry>735</entry>
+ </row>
+
+ <row>
+ <entry>3</entry>
+
+ <entry>220.50</entry>
+
+ <entry>514.50</entry>
+ </row>
+
+ <row>
+ <entry>4</entry>
+
+ <entry>154.35</entry>
+
+ <entry>360.15</entry>
+ </row>
+
+ <row>
+ <entry>5</entry>
+
+ <entry>108.05</entry>
+
+ <entry>252.10</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <note>
+ <para>Beware: Tax authorities may require (or allow) a larger
+ percentage in the first period. On the other hand, in Canada, this
+ is reversed, as they permit only a half share of "Capital Cost
+ Allowance" in the first year. The result of this approach is that
+ asset value decreases more rapidly at the beginning than at the
+ end which is probably more realistic for most assets than a linear
+ scheme. This is certainly true for automobiles.</para>
+ </note>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Sum of digits</emphasis> is a front-weighted
+ depreciation scheme similar to the geometric depreciation, except
+ that the value of the asset reaches zero at the end of the period.
+ This is a front-weighted depreciation scheme, more depreciation
+ being applied early in the period. This method is most often
+ employed in Anglo/Saxon countries. Here is an illustration:</para>
+
+ <para>Example: First you divide the asset value by the sum of the
+ years of use, e.g. for our example from above with an asset worth
+ $1500 that is used over a period of five years you get
+ 1500/(1+2+3+4+5)=100. Depreciation and asset value are then
+ calculated as follows:</para>
+
+ <para><table>
+ <title>Sum of Digits Depreciation Scheme Example</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Year</emphasis></entry>
+
+ <entry><emphasis>Depreciation</emphasis></entry>
+
+ <entry><emphasis>Remaining Value</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>0</entry>
+
+ <entry>-</entry>
+
+ <entry>1500</entry>
+ </row>
+
+ <row>
+ <entry>1</entry>
+
+ <entry>100*5=500</entry>
+
+ <entry>1000</entry>
+ </row>
+
+ <row>
+ <entry>2</entry>
+
+ <entry>100*4=400</entry>
+
+ <entry>600</entry>
+ </row>
+
+ <row>
+ <entry>3</entry>
+
+ <entry>100*3=300</entry>
+
+ <entry>300</entry>
+ </row>
+
+ <row>
+ <entry>4</entry>
+
+ <entry>100*2=200</entry>
+
+ <entry>100</entry>
+ </row>
+
+ <row>
+ <entry>5</entry>
+
+ <entry>100*1=100</entry>
+
+ <entry>0</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+ </listitem>
+ </orderedlist>
+ </sect2>
</sect1>
<sect1 id="dep_accounts1">
- <title>Account Setup</title>
- <para>
-As with most accounting practices, there are a number of different ways to setup depreciation accounts. We will present here a general method which should be flexible enough to handle most situations. The first account you will need is an <emphasis>Asset Cost</emphasis> account (GnuCash account type "asset"), which is simply a place where you record the original purchase of the asset. Usually this purchase is accomplished by a transaction from your bank account.
- </para>
- <para>
-In order to keep track of the depreciation of the asset, you will need two depreciation accounts. The first is an <emphasis>Accumulated Depreciation</emphasis> account in which to collect the sum of all of the depreciation amounts, and will contain negative values. In GnuCash, this is an account type <emphasis>asset</emphasis>. The Accumulated Depreciation account is balanced by a <emphasis>Depreciation Expense</emphasis> account, in which all periodic depreciation expenses are recorded. In GnuCash, this is an account type <emphasis>expense</emphasis>.
- </para>
- <para>
-Below is a generic account hierarchy for tracking the depreciation of 2 assets, ITEM1 and ITEM2. The "Asset Cost" accounts are balanced by the "Bank" account, the Accumulated Depreciation account is balanced by the Depreciation Expense account.
- </para>
- <literallayout>
+ <title>Account Setup</title>
+
+ <para>As with most accounting practices, there are a number of different
+ ways to setup depreciation accounts. We will present here a general method
+ which should be flexible enough to handle most situations. The first
+ account you will need is an <emphasis>Asset Cost</emphasis> account
+ (GnuCash account type "asset"), which is simply a place where you record
+ the original purchase of the asset. Usually this purchase is accomplished
+ by a transaction from your bank account.</para>
+
+ <para>In order to keep track of the depreciation of the asset, you will
+ need two depreciation accounts. The first is an <emphasis>Accumulated
+ Depreciation</emphasis> account in which to collect the sum of all of the
+ depreciation amounts, and will contain negative values. In GnuCash, this
+ is an account type <emphasis>asset</emphasis>. The Accumulated
+ Depreciation account is balanced by a <emphasis>Depreciation
+ Expense</emphasis> account, in which all periodic depreciation expenses
+ are recorded. In GnuCash, this is an account type
+ <emphasis>expense</emphasis>.</para>
+
+ <para>Below is a generic account hierarchy for tracking the depreciation
+ of 2 assets, ITEM1 and ITEM2. The "Asset Cost" accounts are balanced by
+ the "Bank" account, the Accumulated Depreciation account is balanced by
+ the Depreciation Expense account.</para>
+
+ <literallayout>
-Assets
- -ITEM1
- -Cost (Asset Cost account)
- -Depreciation (Accumulated Depreciation account)
- -ITEM2
- -Cost (Asset Cost account)
- -Depreciation (Accumulated Depreciation account)
- -Bank
+ -Fixed Assets
+ -ITEM1
+ -Cost (Asset Cost account)
+ -Depreciation (Accumulated Depreciation account)
+ -ITEM2
+ -Cost (Asset Cost account)
+ -Depreciation (Accumulated Depreciation account)
+ -Current Assets
+ -Bank
-Expenses
-Depreciation (Depreciation Expense account)
</literallayout>
- <para>
-One of the features of the account hierarchy shown above is that you can readily see some important summary values about your depreciating asset. The "Assets:ITEM1" account total shows you the current estimated value for item1, the "Assets:ITEM1:Cost" shows you what you originally paid for item1, "Assets:ITEM1:Depreciation" shows you your accrued depreciation for item1, and finally, "Expenses:Depreciation" demonstrates the total accrued depreciation of all your assets.
- </para>
- <para>
-It is certainly possible to use a different account hierarchy. One popular account setup is to combine the <emphasis>Asset Cost</emphasis> and <emphasis>Accrued Depreciation</emphasis> asset accounts. This has the advantage of having fewer accounts cluttering your account hierarchy, but with the disadvantage that to determine some of the summary details mentioned in the paragraph above you will have to open the account register windows. As with most things, there are many ways to do it, find a way that works best for you.
- </para>
- <para>
-The actual input of the depreciation amounts is done by hand every accounting period. There is no way in GnuCash (as of yet) to perform the depreciation scheme calculations automatically, or to input the values automatically into the appropriate accounts. However, since an accounting period is typically one year, this really is not much work to do by hand.
- </para>
+
+ <para>One of the features of the account hierarchy shown above is that you
+ can readily see some important summary values about your depreciating
+ asset. The "Assets:Fixed Assets:ITEM1" account total shows you the current
+ estimated value for item1, the "Assets:Fixed Assets:ITEM1:Cost" shows you
+ what you originally paid for item1, "Assets:Fixed
+ Assets:ITEM1:Depreciation" shows you your accrued depreciation for item1,
+ and finally, "Expenses:Depreciation" demonstrates the total accrued
+ depreciation of all your assets.</para>
+
+ <para>It is certainly possible to use a different account hierarchy. One
+ popular account setup is to combine the <emphasis>Asset Cost</emphasis>
+ and <emphasis>Accrued Depreciation</emphasis> asset accounts. This has the
+ advantage of having fewer accounts cluttering your account hierarchy, but
+ with the disadvantage that to determine some of the summary details
+ mentioned in the paragraph above you will have to open the account
+ register windows. As with most things, there are many ways to do it, find
+ a way that works best for you.</para>
+
+ <para>The actual input of the depreciation amounts is done by hand every
+ accounting period. There is no way in GnuCash (as of yet) to perform the
+ depreciation scheme calculations automatically, or to input the values
+ automatically into the appropriate accounts. However, since an accounting
+ period is typically one year, this really is not much work to do by
+ hand.</para>
</sect1>
<sect1 id="dep_example1">
- <title>Example</title>
- <para>
-Let's go ahead and step through an example. Imagine you are a photographer and you use a car and an expensive camera for your personal business. You will want to track the depreciation on these items, because you can probably deduct the depreciation from your business taxes.
- </para>
- <para>
-The first step is to build the account hierarchy (as shown in the previous section, replace ITEM1 and ITEM2 with "car" and "camera"). Now, record the purchase of your assets by transferring the money from your bank account to the appropriate <emphasis>Asset Cost</emphasis> accounts for each item (eg: the "Assets:Car:Cost" account for the car). In this example, you start with $30k in the bank, the car cost $20k and the camera cost $10k and were both purchased on January 1, 2000.
- </para>
+ <title>Example</title>
- <screenshot id="dep_example">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/dep_example.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Asset Depreciation Example1</phrase>
- </textobject>
- <caption>
- <para>The asset depreciation example main window, before depreciation
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <para>Let's go ahead and step through an example. Imagine you are a
+ photographer and you use a car and an expensive camera for your personal
+ business. You will want to track the depreciation on these items, because
+ you can probably deduct the depreciation from your business taxes.</para>
- <para>
-Looking at the tax codes, we realize that we must report depreciation on these items using the "sum of digits" scheme, over a 5 year period. So, the yearly depreciation amounts for the car come to $6667, $5333, $4000, $2667, $1333 for years 1 to 5 respectively, rounded to the nearest dollar. The yearly depreciation amounts for the camera are $3333, $2667, $2000, $1333, $667. Consult the previous section on Depreciation Schemes for the formula for calculating these values.
- </para>
- <para>
-For each accounting period (IE: fiscal year) you record the depreciation as an expense in the appropriate <emphasis>Accrued Depreciation</emphasis> account (eg: the "Asset:Car:Depreciation" account for the car). The two windows below show your car's accrued depreciation account and the main window after the third year (IE: three periods) of depreciation using this "sum of digits" scheme.
- </para>
+ <para>The first step is to build the account hierarchy (as shown in the
+ previous section, replace ITEM1 and ITEM2 with "car" and "camera"). Now,
+ record the purchase of your assets by transferring the money from your
+ bank account to the appropriate <emphasis>Asset Cost</emphasis> accounts
+ for each item (eg: the "Assets:Fixed Assets:Car:Cost" account for the
+ car). In this example, you start with $30k in the bank, the car cost $20k
+ and the camera cost $10k and were both purchased on January 1,
+ 2000.</para>
- <screenshot id="dep_assetreg">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/dep_assetreg.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Asset Depreciation Register Window</phrase>
- </textobject>
- <caption>
- <para>The asset depreciation register window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <screenshot id="dep_example">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/dep_example.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <screenshot id="dep_assetmain">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/dep_assetmain.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Asset Depreciation Main Window</phrase>
- </textobject>
- <caption>
- <para>The asset depreciation main window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <textobject>
+ <phrase>Asset Depreciation Example1</phrase>
+ </textobject>
- <note>
- <para>
-A Word of Caution: Since depreciation and tax issues are closely related, you may not always be free in choosing your preferred method. Fixing wrong calculations will cost a whole lot more time and trouble than getting the calculations right the first time, so if you plan to depreciate assets, it is wise to make sure of the schemes you will be permitted or required to use.
- </para>
- </note>
+ <caption><para>The asset depreciation example main window, before
+ depreciation </para></caption>
+ </mediaobject>
+ </screenshot>
+ <para>Looking at the tax codes, we realize that we must report
+ depreciation on these items using the "sum of digits" scheme, over a 5
+ year period. So, the yearly depreciation amounts for the car come to
+ $6667, $5333, $4000, $2667, $1333 for years 1 to 5 respectively, rounded
+ to the nearest dollar. The yearly depreciation amounts for the camera are
+ $3333, $2667, $2000, $1333, $667. Consult the previous section on
+ Depreciation Schemes for the formula for calculating these values.</para>
+
+ <para>For each accounting period (IE: fiscal year) you record the
+ depreciation as an expense in the appropriate <emphasis>Accrued
+ Depreciation</emphasis> account (eg: the "Asset:Fixed
+ Assets:Car:Depreciation" account for the car). The two windows below show
+ your car's accrued depreciation account and the main window after the
+ third year (IE: three periods) of depreciation using this "sum of digits"
+ scheme.</para>
+
+ <screenshot id="dep_assetreg">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/dep_assetreg.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Asset Depreciation Register Window</phrase>
+ </textobject>
+
+ <caption><para>The asset depreciation register window
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="dep_assetmain">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/dep_assetmain.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Asset Depreciation Main Window</phrase>
+ </textobject>
+
+ <caption><para>The asset depreciation main window </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <note>
+ <para>A Word of Caution: Since depreciation and tax issues are closely
+ related, you may not always be free in choosing your preferred method.
+ Fixing wrong calculations will cost a whole lot more time and trouble
+ than getting the calculations right the first time, so if you plan to
+ depreciate assets, it is wise to make sure of the schemes you will be
+ permitted or required to use.</para>
+ </note>
</sect1>
- </chapter>
+</chapter>
\ No newline at end of file
Modified: gnucash-docs/trunk/guide/C/ch_loans.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_loans.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_loans.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,239 +1,275 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
+ Version: 1.9.0
+ Last modified: April 24th 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
Chris Lyttle <chris at wilddev.net>
Author:
Jon Lapham <lapham at extracta.com.br>
+ Updated Bengt Thuree <bengt at thuree.com>
Originally designed by Carol Champagne.
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter7">
- <title>Loans</title>
- <para>
- This chapter explains how to manage your loans with GnuCash.
- </para>
- <sect1 id="loans_concepts1">
- <title>Basic Concepts</title>
- <para>A loan is defined as a financial transaction in which someone pays for the use of someone else's money. There are many familiar examples of loans: credits cards, auto loans, house mortgages, or a business loan.</para>
+<chapter id="chapter_loans">
+ <title>Loans</title>
- <sect2 id="loans_conceptsterms2">
- <title>Terminology</title>
- <para>
-Before discussing tracking loan in GnuCash specifically, it will be helpful to present a glossary of terminology. The terms presented below represent some of the basic concepts found concerning loans. It is a good idea to become familiar with these terms, or at least, refer back to this list if you encounter an unfamiliar word in the later sections.
- </para>
+ <para>This chapter explains how to manage your loans with GnuCash.</para>
- <itemizedlist>
- <listitem>
- <para><emphasis>Amortization</emphasis> - the repayment plan which will insure that a loan is eventually paid off, typically utilizing equal valued monthly payments. These payments are usually split into principal and interest, where the amount of principal per payment increases (and interest decreases) as the amortization period elapses.</para>
- </listitem>
- <listitem>
- <para><emphasis>Borrower</emphasis> - the person or company that receives the money from a loan.</para>
- </listitem>
- <listitem>
- <para><emphasis>Default</emphasis> - when a borrower fails to repay a loan according to the terms agreed upon with the lender.</para>
- </listitem>
- <listitem>
- <para><emphasis>Deferment</emphasis> - a temporary delay in the repayment of a loan.</para>
- </listitem>
- <listitem>
- <para><emphasis>Delinquency</emphasis> - is the term that refers to late payments.</para>
- </listitem>
- <listitem>
- <para><emphasis>Disbursement</emphasis> - amount of the loan paid to the borrower. Some loans have multiple disbursements, meaning the borrower does not receive the full amount of the loan at one time.</para>
- </listitem>
- <listitem>
- <para><emphasis>Interest</emphasis> - the expense charged by the lender to the borrower for the use of the money loaned. This is typically expressed in terms of a yearly percentage charged on the principal borrowed, known as the <emphasis>Annual Percentage Rate</emphasis> or APR.</para>
- </listitem>
- <listitem>
- <para><emphasis>Lender</emphasis> - the company or person who lends money to a borrower.</para>
- </listitem>
- <listitem>
- <para><emphasis>Loan Fee</emphasis> - a processing fee removed from the principal at the time the borrower receives a loan.</para>
- </listitem>
- <listitem>
- <para><emphasis>Principal</emphasis> - the original amount of the loan, or the amount of the original loan that is still owed. When you make a monthly payment on a loan, part of the money pays the interest, and part pays the principal.</para>
- </listitem>
- <listitem>
- <para><emphasis>Promissory Note</emphasis> - the legal agreement between the borrower and lender concerning the loan.</para>
- </listitem>
- </itemizedlist>
+ <sect1 id="loans_concepts1">
+ <title>Basic Concepts</title>
- </sect2>
- </sect1>
+ <para>A loan is defined as a financial transaction in which someone pays
+ for the use of someone else's money. There are many familiar examples of
+ loans: credits cards, auto loans, house mortgages, or a business
+ loan.</para>
- <sect1 id="loans_accounts1">
- <title>Setting Up Accounts</title>
- <para>When a borrower obtains a loan, it is usually with the intention to make a purchase of something of value. In fact, most loans require the borrower to buy some predetermined asset, such as a house. This asset is insurance against the borrower defaulting on the loan. There are, of course, examples of loans which do not necessarily have an associated high value asset, such as educational loans.</para>
- <para>For the account structure presented here, we will assume the loan was used to purchase a compensating asset.</para>
- <para>A loan is a liability, the interest you accrue on the loan is an on-going expense, and any administrative fees you may have to pay would be another expense. The thing purchased with the money from a loan is an asset. With these parameters, we can now present a basic loan account structure: </para>
+ <sect2 id="loans_conceptsterms2">
+ <title>Terminology</title>
- <literallayout>
+ <para>Before discussing tracking loan in GnuCash specifically, it will
+ be helpful to present a glossary of terminology. The terms presented
+ below represent some of the basic concepts found concerning loans. It is
+ a good idea to become familiar with these terms, or at least, refer back
+ to this list if you encounter an unfamiliar word in the later
+ sections.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Amortization</emphasis> - the repayment plan which
+ will insure that a loan is eventually paid off, typically utilizing
+ equal valued monthly payments. These payments are usually split into
+ principal and interest, where the amount of principal per payment
+ increases (and interest decreases) as the amortization period
+ elapses.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Borrower</emphasis> - the person or company that
+ receives the money from a loan.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Default</emphasis> - when a borrower fails to repay
+ a loan according to the terms agreed upon with the lender.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Deferment</emphasis> - a temporary delay in the
+ repayment of a loan.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Delinquency</emphasis> - is the term that refers to
+ late payments.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Disbursement</emphasis> - amount of the loan paid to
+ the borrower. Some loans have multiple disbursements, meaning the
+ borrower does not receive the full amount of the loan at one
+ time.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Interest</emphasis> - the expense charged by the
+ lender to the borrower for the use of the money loaned. This is
+ typically expressed in terms of a yearly percentage charged on the
+ principal borrowed, known as the <emphasis>Annual Percentage
+ Rate</emphasis> or APR.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Lender</emphasis> - the company or person who lends
+ money to a borrower.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Loan Fee</emphasis> - a processing fee removed from
+ the principal at the time the borrower receives a loan.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Principal</emphasis> - the original amount of the
+ loan, or the amount of the original loan that is still owed. When
+ you make a monthly payment on a loan, part of the money pays the
+ interest, and part pays the principal.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Promissory Note</emphasis> - the legal agreement
+ between the borrower and lender concerning the loan.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+ </sect1>
+
+ <sect1 id="loans_accounts1">
+ <title>Setting Up Accounts</title>
+
+ <para>When a borrower obtains a loan, it is usually with the intention to
+ make a purchase of something of value. In fact, most loans require the
+ borrower to buy some predetermined asset, such as a house. This asset is
+ insurance against the borrower defaulting on the loan. There are, of
+ course, examples of loans which do not necessarily have an associated high
+ value asset, such as educational loans.</para>
+
+ <para>For the account structure presented here, we will assume the loan
+ was used to purchase a compensating asset.</para>
+
+ <para>A loan is a liability, the interest you accrue on the loan is an
+ on-going expense, and any administrative fees you may have to pay would be
+ another expense. The thing purchased with the money from a loan is an
+ asset. With these parameters, we can now present a basic loan account
+ structure:</para>
+
+ <literallayout>
Basic Loan Account Structure
-Asset
- -Bank Account
- -Asset Purchased
+ -Current Assets
+ -Savings Account
+ -Fixed Assets
+ -Asset Purchased
-Liability
- -Loan
+ -Loans
+ -Mortgage Loan
-Expenses
- -Loan Interest
- -Loan Admin Fees
+ -Interest
+ -Mortgage Interest
+ -Mortgage Adm Fees
</literallayout>
-<para>GnuCash has a number of predefined loan account hierarchies available, including Car Loans and Home Mortgage Loans. To access these predefined account structures, click on <guimenu>File</guimenu> -> <guimenu>New File</guimenu> and select the loan types in which you are interested.</para>
+ <para>GnuCash has a number of predefined loan account hierarchies
+ available, including Car Loans and Home Mortgage Loans. To access these
+ predefined account structures, click on
+ <menuchoice>
+ <guimenu>File</guimenu>
+ <guimenuitem>New Account Hierarchy</guimenuitem>
+ </menuchoice> and select the loan types in which you are interested.</para>
+ </sect1>
- </sect1>
+ <sect1 id="loans_calcs1">
+ <title>Calculations</title>
- <sect1 id="loans_mortgage1">
- <title>House Mortgage (How-To)</title>
- <para>A house mortgage can be setup using the account structure present in the previous section.</para>
- <para>As an example, assume you have $60k in you bank account, and you buy a $150k house. The mortgage is charging 6% APR, and has administrative fees (closing costs, etc) of 3%. You decide to put $50k down, and thus will need to borrow $103k, which will give you $100 after the closing costs are paid (3% of $100k).</para>
- <para>You accounts before borrowing the money:</para>
+ <para>Determining loan amortization schedules, periodic payment amounts,
+ total payment value, or interest rates can be somewhat complex. To help
+ facilitate these kinds of calculations, GnuCash has a built-in Financial
+ Calculator. To access the calculator, go to <menuchoice>
+ <guimenu>Tools</guimenu>
- <screenshot id="loans_mortgage">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/loans_mortgage1.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Accounts Before Receiving Loan</phrase>
- </textobject>
- <caption>
- <para>Accounts Before Receiving Loan</para>
- </caption>
- </mediaobject>
- </screenshot>
-
- <para>The purchase of the house is recorded with a split transaction in the Asset:House account, with $50k coming from the bank (IE: your down payment), and $100k coming from the Mortgage. You can place the $3k closing costs in the same split.</para>
+ <guimenuitem>Financial Calculator</guimenuitem>
+ </menuchoice>.</para>
- <para>
- <table>
- <title>Buying a House Split Transaction</title>
- <tgroup cols="3">
- <tbody>
- <row>
-<entry>Account</entry><entry>Increase</entry><entry>Decrease</entry>
- </row>
- <row>
-<entry>Assets:House</entry><entry>$150,000</entry><entry></entry>
- </row>
- <row>
-<entry>Assets:Bank</entry><entry></entry><entry>$50,000</entry>
- </row>
- <row>
-<entry>Liabilities:Mortgage</entry><entry></entry><entry>$103,000</entry>
- </row>
- <row>
-<entry>Expenses:Mortgage Adm Fees</entry><entry>$3000</entry><entry></entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- </para>
- <para>The split will look like this in the Assets:House Account:</para>
+ <screenshot id="loans_fcalc">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loans_fcalc.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <screenshot id="loans_mortgage2.png">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/loans_mortgage2.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Mortgage Split Transaction</phrase>
- </textobject>
- <caption>
- <para>Mortgage Split Transaction</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <textobject>
+ <phrase>Financial Calculator</phrase>
+ </textobject>
- <para>Which will give account totals like this:</para>
- <screenshot id="loans_mortgage3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/loans_mortgage3.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Mortgage Accounts</phrase>
- </textobject>
- <caption>
- <para>Mortgage Account</para>
- </caption>
- </mediaobject>
- </screenshot>
-
+ <caption><para>The GnuCash Financial Calculator.</para></caption>
+ </mediaobject>
+ </screenshot>
- </sect1>
+ <para>The Financial Calculator can be used to calculate any one of the
+ parameters: <guilabel>Payment Periods</guilabel>, <guilabel>Interest
+ Rate</guilabel>, <guilabel>Present Value</guilabel>, <guilabel>Periodic
+ Payment</guilabel>, or <guilabel>Future Value</guilabel> given that the
+ other 4 have been defined. You will also need to specify the compounding
+ and payment methods.</para>
- <sect1 id="loans_calcs1">
- <title>Calculations</title>
- <para>Determining loan amortization schedules, periodic payment amounts, total payment value, or interest rates can be somewhat complex. To help facilitate these kinds of calculations, GnuCash has a built-in Financial Calculator. To access the calculator, go to <guimenu>Tools</guimenu> -> <guimenu>Financial Calculator</guimenu>.</para>
-
- <screenshot id="loans_fcalc">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/loans_fcalc.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Financial Calculator</phrase>
- </textobject>
- <caption>
- <para>The GnuCash Financial Calculator.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Payment Periods</emphasis> - the number of payment
+ periods.</para>
+ </listitem>
-<para>The Financial Calculator can be used to calculate any one of the parameters: <guilabel>Payment Periods</guilabel>, <guilabel>Interest Rate</guilabel>, <guilabel>Present Value</guilabel>, <guilabel>Periodic Payment</guilabel>, or <guilabel>Future Value</guilabel> given that the other 4 have been defined. You will also need to specify the compounding and payment methods.</para>
+ <listitem>
+ <para><emphasis>Interest Rate</emphasis> - the nominal interest rate
+ of the loan, ie: the yearly interest rate.</para>
+ </listitem>
- <itemizedlist>
- <listitem>
- <para><emphasis>Payment Periods</emphasis> - the number of payment periods.</para>
- </listitem>
- <listitem>
- <para><emphasis>Interest Rate</emphasis> - the nominal interest rate of the loan, ie: the yearly interest rate.</para>
- </listitem>
- <listitem>
- <para><emphasis>Present Value</emphasis> - the present value of the loan, ie: current amount owed on the loan.</para>
- </listitem>
- <listitem>
- <para><emphasis>Periodic Payment</emphasis> - the amount to pay per period.</para>
- </listitem>
- <listitem>
- <para><emphasis>Future Value</emphasis> - the future value of the loan, ie: the amount owed after all payment periods are over.</para>
- </listitem>
- <listitem>
- <para><emphasis>Compounding</emphasis> - two interest compounding methods exist, discrete or continuous. For discrete compounding select the compounding frequency from the popup menu with a range from yearly to daily.</para>
- </listitem>
- <listitem>
- <para><emphasis>Payments</emphasis> - the popup menu allows you to select the payment frequency with a range from yearly to daily. You can also select whether your payments occur at the beginning or end of the period. Payments made at the beginning of the payment period have interest applied to the payment as well as any previous money paid or money still owed.</para>
- </listitem>
- </itemizedlist>
+ <listitem>
+ <para><emphasis>Present Value</emphasis> - the present value of the
+ loan, ie: current amount owed on the loan.</para>
+ </listitem>
+ <listitem>
+ <para><emphasis>Periodic Payment</emphasis> - the amount to pay per
+ period.</para>
+ </listitem>
- <sect2 id="loans_calcsexample1_2">
- <title>Example: Monthly Payments</title>
- <para>What is your monthly payment on a $100000 30 year loan at a fixed rate of 4% compounded monthly?</para>
- <para>This scenario is shown in the example image above. To perform this calculation, set Payment Periods to 360 (12 months x 30 years), Interest Rate to 4, Present Value to 100000, leave Periodic Payment empty and set Future Value to 0 (you do not want to owe anything at the end of the loan). Compounding is Monthly, Payments are Monthly, assume End of Period Payments, and Discrete Compounding. Now, click on the <guibutton>Calculate</guibutton> button next to the Periodic Payment area. You should see -473.30.</para>
- <para>Answer: You must make monthly payments of 473.30.</para>
- </sect2>
+ <listitem>
+ <para><emphasis>Future Value</emphasis> - the future value of the
+ loan, ie: the amount owed after all payment periods are over.</para>
+ </listitem>
- <sect2 id="loans_calcsexample2_2">
- <title>Example: Length of Loan</title>
-<para>How long will you be paying back a $20000 loan at 10% fixed rate interest compounded monthly if you pay $500 per month?</para>
- <para>To perform this calculation, leave Payment Periods empty, set Interest Rate to 10, Present Value to 20000, Periodic Payment is -500, and set Future Value is 0 (you do not want to owe anything at the end of the loan). Compounding is Monthly, Payments are Monthly, assume End of Period Payments, and Discrete Compounding. Now, click on the <guibutton>Calculate</guibutton> button next to the Payment Periods area, you should calculate 48.</para>
- <para>Answer: You will pay off the loan in 4 years (48 months).</para>
- </sect2>
+ <listitem>
+ <para><emphasis>Compounding</emphasis> - two interest compounding
+ methods exist, discrete or continuous. For discrete compounding select
+ the compounding frequency from the popup menu with a range from yearly
+ to daily.</para>
+ </listitem>
- <sect2 id="loans_calcsdetails2">
- <title>Advanced: Calculation Details</title>
- <para>In order to discuss the mathematical formulas used by the Financial Calculator, we first must define some variables.
+ <listitem>
+ <para><emphasis>Payments</emphasis> - the popup menu allows you to
+ select the payment frequency with a range from yearly to daily. You
+ can also select whether your payments occur at the beginning or end of
+ the period. Payments made at the beginning of the payment period have
+ interest applied to the payment as well as any previous money paid or
+ money still owed.</para>
+ </listitem>
+ </itemizedlist>
+ <sect2 id="loans_calcsexample1_2">
+ <title>Example: Monthly Payments</title>
+
+ <para>What is your monthly payment on a $100000 30 year loan at a fixed
+ rate of 4% compounded monthly?</para>
+
+ <para>This scenario is shown in the example image above. To perform this
+ calculation, set Payment Periods to 360 (12 months x 30 years), Interest
+ Rate to 4, Present Value to 100000, leave Periodic Payment empty and set
+ Future Value to 0 (you do not want to owe anything at the end of the
+ loan). Compounding is Monthly, Payments are Monthly, assume End of
+ Period Payments, and Discrete Compounding. Now, click on the
+ <guibutton>Calculate</guibutton> button next to the Periodic Payment
+ area. You should see -473.30.</para>
+
+ <para>Answer: You must make monthly payments of 473.30.</para>
+ </sect2>
+
+ <sect2 id="loans_calcsexample2_2">
+ <title>Example: Length of Loan</title>
+
+ <para>How long will you be paying back a $20000 loan at 10% fixed rate
+ interest compounded monthly if you pay $500 per month?</para>
+
+ <para>To perform this calculation, leave Payment Periods empty, set
+ Interest Rate to 10, Present Value to 20000, Periodic Payment is -500,
+ and set Future Value is 0 (you do not want to owe anything at the end of
+ the loan). Compounding is Monthly, Payments are Monthly, assume End of
+ Period Payments, and Discrete Compounding. Now, click on the
+ <guibutton>Calculate</guibutton> button next to the Payment Periods
+ area. You should see 48.</para>
+
+ <para>Answer: You will pay off the loan in 4 years (48 months).</para>
+ </sect2>
+
+ <sect2 id="loans_calcsdetails2">
+ <title>Advanced: Calculation Details</title>
+
+ <para>In order to discuss the mathematical formulas used by the
+ Financial Calculator, we first must define some
+ variables.
<literallayout>
n == number of payment periods
%i == nominal interest rate, NAR, charged
@@ -256,14 +292,20 @@
360 == daily
365 == daily
</literallayout>
-</para>
+ </para>
- <sect3 id="loans_calcsdetails_i2">
- <title>Converting between nominal and effective interest rate</title>
+ <sect3 id="loans_calcsdetails_i2">
+ <title>Converting between nominal and effective interest rate</title>
- <para>When a solution for n, PV, PMT or FV is required, the nominal interest rate (i) must first be converted to the effective interest rate per payment period (ieff). This rate, ieff, is then used to compute the selected variable. When a solution for i is required, the computation produces the effective interest rate (ieff). Thus, we need functions which convert from i to ieff, and from ieff to i.</para>
+ <para>When a solution for n, PV, PMT or FV is required, the nominal
+ interest rate (i) must first be converted to the effective
+ interest rate per payment period (ieff). This rate,
+ ieff, is then used to compute the selected variable. When a solution
+ for i is required, the computation produces the effective interest
+ rate (ieff). Thus, we need functions which convert from i to ieff, and
+ from ieff to i.</para>
-<literallayout>
+ <literallayout>
To convert from i to ieff, the following expressions are used:
Discrete Interest: <emphasis>ieff = (1 + i/CF)^(CF/PF) - 1</emphasis>
Continuous Interest: <emphasis>ieff = e^(i/PF) - 1 = exp(i/PF) - 1</emphasis>
@@ -273,25 +315,33 @@
Continuous Interest: <emphasis>i = ln[(1+ieff)^PF]</emphasis>
</literallayout>
-<note>
-<para>NOTE: in the equations below for the financial transaction, all interest rates are the effective interest rate, ieff. For the sake of brevity, the symbol will be shortened to just 'i'.</para>
-</note>
- </sect3>
+ <note>
+ <para>NOTE: in the equations below for the financial transaction,
+ all interest rates are the effective interest rate, ieff. For the
+ sake of brevity, the symbol will be shortened to just 'i'.</para>
+ </note>
+ </sect3>
- <sect3 id="loans_calcsdetails_basic2">
- <title>The basic financial equation</title>
+ <sect3 id="loans_calcsdetails_basic2">
+ <title>The basic financial equation</title>
-<para>One equation fundamentally links all the 5 variables. This is known as the fundamental financial equation:</para>
+ <para>One equation fundamentally links all the 5 variables. This is
+ known as the fundamental financial equation:</para>
-<literallayout>
+ <literallayout>
<emphasis>PV*(1 + i)^n + PMT*(1 + iX)*[(1+i)^n - 1]/i + FV = 0</emphasis>
Where: X = 0 for end of period payments, and
X = 1 for beginning of period payments
</literallayout>
-<para>From this equation, functions which solve for the individual variables can be derived. For a detailed explanation of the derivation of this equation, see the comments in the file src/calculation/fin.c from the GnuCash source code. The A, B, and C variables are defined first, to make the later equations simpler to read.</para>
-<literallayout>
+ <para>From this equation, functions which solve for the individual
+ variables can be derived. For a detailed explanation of the derivation
+ of this equation, see the comments in the file src/calculation/fin.c
+ from the GnuCash source code. The A, B, and C variables are defined
+ first, to make the later equations simpler to read.</para>
+
+ <literallayout>
<emphasis>A = (1 + i)^n - 1</emphasis>
<emphasis>B = (1 + iX)/i</emphasis>
<emphasis>C = PMT*B</emphasis>
@@ -306,40 +356,827 @@
<emphasis>i = [FV/PV]^(1/n) - 1</emphasis>
</literallayout>
-<para>The case where PMT != 0 is fairly complex and will not be presented here. Rather than involving an exactly solvable function, determining the interest rate when PMT !=0 involves an iterative process. Please see the src/calculation/fin.c source file for a detailed explanation.
-</para>
- </sect3>
- <sect3 id="loans_calcsdetails_ex2">
- <title>Example: Monthly Payments</title>
- <para>Let's recalculate the examples shown above, this time using the mathematical formulas rather than the Financial Calculator. What is your monthly payment on a $100000 30 year loan at a fixed rate of 4% compounded monthly?</para>
- <para>First, let's define the variables: n = (30*12) = 360, PV = 100000, PMT = unknown, FV = 0, i = 4, CF = PV = 12, X = 0 (end of payment periods).</para>
- <para>The second step is to convert the nominal interest rate (i) to the effective interest rate (ieff). Since the interest rate is compounded monthly, it is discrete, and we use: ieff = (1 + i/CF)^(CF/PF) - 1, which gives ieff = (1 + 4/12)^(12/12) - 1, thus ieff = 1/3 = 0.3333333.</para>
- <para>Now we can calculate A and B. A = (1 + i)^n - 1 = (1 + 1/3)^360 - 1 = 9.504848x10^44. B = (1 + iX)/i = (1 + 0.33333*0)/0.33333 = 3.</para>
- <para>With A and B, we can calculate PMT. PMT = -[FV + PV*(A + 1)]/[A*B] = -[0 + 100000*(9.504848x10^44 + 1)] / [9.504848x10^44 * 3] = -9.504848x10^49 / 2.851454x10^45 = -33333.3.</para>
- </sect3>
+ <para>The case where PMT != 0 is fairly complex and will not be
+ presented here. Rather than involving an exactly solvable function,
+ determining the interest rate when PMT !=0 involves an iterative
+ process. Please see the src/calculation/fin.c source file for a
+ detailed explanation.</para>
+ </sect3>
- </sect2>
- </sect1>
+ <sect3 id="loans_calcsdetails_ex2">
+ <title>Example: Monthly Payments</title>
+ <para>Let's recalculate the examples shown above, this time using the
+ mathematical formulas rather than the Financial Calculator. What is
+ your monthly payment on a $100000 30 year loan at a fixed rate of 4%
+ compounded monthly?</para>
- <sect1 id="loans_missing1">
- <title>Missing Loan Documentation</title>
+ <para>First, let's define the variables: n = (30*12) = 360, PV =
+ 100000, PMT = unknown, FV = 0, i = 4%=4/100=0.04, CF = PV = 12, X = 0
+ (end of payment periods).</para>
- <literallayout>
- -Automobile Loan (How-To)
+ <para>The second step is to convert the nominal interest rate (i) to
+ the effective interest rate (ieff). Since the interest rate is
+ compounded monthly, it is discrete, and we use: ieff = (1 +
+ i/CF)^(CF/PF) - 1, which gives ieff = (1 + 0.04/12)^(12/12) - 1, thus
+ ieff = 1/300 = 0.0033333.</para>
+ <para>Now we can calculate A and B. A = (1 + i)^n - 1 = (1 +
+ 1/300)^360 - 1 = 2.313498. B = (1 + iX)/i = (1 + (1/300)*0)/(1/300) =
+ 300.</para>
+
+ <para>With A and B, we can calculate PMT. PMT = -[FV + PV*(A +
+ 1)]/[A*B] = -[0 + 100000*(2.313498 + 1)] / [2.313498 * 300] =
+ -331349.8 / 694.0494 = -477.415296 = -477.42.</para>
+
+ <para>If you would like to do the same calculation by using GnuCashs
+ finacial calculator, then start it using <menuchoice>
+ <guimenu>Tools</guimenu>
+
+ <guimenuitem>Financial Calculator</guimenuitem>
+ </menuchoice> and enter</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><userinput>30 * 12</userinput> as Payment periods</para>
+ </listitem>
+
+ <listitem>
+ <para><userinput>4</userinput> as Interest Rate</para>
+ </listitem>
+
+ <listitem>
+ <para><userinput>100000</userinput> as Present Value</para>
+ </listitem>
+
+ <listitem>
+ <para>Press <guibutton>Clear</guibutton> as Periodic
+ payment</para>
+ </listitem>
+
+ <listitem>
+ <para><userinput>0</userinput> as Payment periods</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>Press <guibutton>Calculate</guibutton> and you will see that you
+ need to pay <emphasis>$477.42</emphasis> per month for the next 360
+ months, as well as you will have payed a total of
+ <emphasis>$171,871.20</emphasis> during this period. See screenshot at
+ <xref linkend="loans_calcs1" />.</para>
+ </sect3>
+ </sect2>
+ </sect1>
+
+ <sect1 id="loans_mortgage1">
+ <title>House Mortgage (How-To)</title>
+
+ <para>A house mortgage can be setup using the account structure present in
+ <xref linkend="loans_accounts1" />.</para>
+
+ <para>As an example, assume you have $60k in you bank account, and you buy
+ a $150k house. The mortgage is charging 6% APR, and has administrative
+ fees (closing costs, etc) of 3%. You decide to put $50k down, and thus
+ will need to borrow $103k, which will give you $100 after the closing
+ costs are paid (3% of $100k).</para>
+
+ <para>Your accounts before borrowing the money:</para>
+
+ <screenshot id="loans_mortgage">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loans_mortgage1.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Accounts Before Receiving Loan</phrase>
+ </textobject>
+
+ <caption><para>Accounts Before Receiving Loan</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The purchase of the house is recorded with a split transaction in
+ the Asset:House account, with $50k coming from the bank (IE: your down
+ payment), and $100k coming from the Mortgage. You can place the $3k
+ closing costs in the same split, and we increase the house loan to $103k
+ to include the closing costs as well.</para>
+
+ <para><table>
+ <title>Buying a House Split Transaction</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:House</entry>
+
+ <entry>$150,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Bank</entry>
+
+ <entry></entry>
+
+ <entry>$50,000</entry>
+ </row>
+
+ <row>
+ <entry>Liabilities:Loans:Mortgage Loan</entry>
+
+ <entry></entry>
+
+ <entry>$103,000</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Mortgage Adm Fees</entry>
+
+ <entry>$3000</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <para>The split will look like this in the Assets:Fixed Assets:House
+ Account:</para>
+
+ <screenshot id="loans_mortgage2.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loans_mortgage2.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Mortgage Split Transaction</phrase>
+ </textobject>
+
+ <caption><para>Mortgage Split Transaction</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Which will give a Chart of Accounts like this:</para>
+
+ <screenshot id="loans_mortgage3">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loans_mortgage3.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Mortgage Accounts</phrase>
+ </textobject>
+
+ <caption><para>Mortgage Account</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect1>
+
+ <sect1 id="loans_personalLoanToSomeOne">
+ <title>A Personal Loan to a friend (How-To)</title>
+
+ <para>It is not always you are borrowing money from the bank, sometimes
+ you borrow money from your family, or perhaps even lend money to a friend.
+ This How-To chapter will describe one way to handle lending money to a
+ friend.</para>
+
+ <para>We are basing this How-To on the following generic account
+ structure.</para>
+
+ <literallayout>
+-Asset
+ -Bank
+ -Bank Account
+ -Money owed to you
+ -Person
+-Income
+ -Interest Income
+ -Person
+ </literallayout>
+
+ <para>This example will show how to track a personal loan of 2,000 USD
+ (default currency) to your friend Peter</para>
+
+ <sect2 id="loans_personalLoanToSomeOne_loan">
+ <title>Loan Specifications</title>
+
+ <para>Peter wants to borrow $2,000 dollars from you and plans to pay you
+ back montly for the next 18 months. Since he is your friend, (but not
+ that close) you both agree on a yearly interest rate of 5%</para>
+
+ <para>In summary we have the below details. Peter's loan details:
+ <itemizedlist>
+ <listitem>
+ <para>Pinciple Amount - $2,000</para>
+ </listitem>
+
+ <listitem>
+ <para>Term - 18 months with 12 payments per year</para>
+ </listitem>
+
+ <listitem>
+ <para>Annual Percentage Rate: 5%</para>
+ </listitem>
+
+ <listitem>
+ <para>Monthly Payment : ??</para>
+ </listitem>
+ </itemizedlist></para>
+
+ <para>So how do we caculate the Montly Payment?</para>
+
+ <para>We have a number of different options, like paper and pen, Linux Calculator,
+ Open Office's Calc module, but the easiest is to use
+ GnuCash Financial Calculater. This gives us that the Monthly Payment
+ should be 115.56$.</para>
+
+ <para>But we need to know how much of this is Interest and how much is
+ Principal to be able to do a proper bookkeeping. For this we need a bit
+ more powerful tool, something like the Calc module in Open Office, and
+ in particular the PMT function.</para>
+
+ <screenshot id="loans_OpenOfficePrivateLoanDetails">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loan_PrivateLoanCalculation.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Calculation of Private Loan details</phrase>
+ </textobject>
+
+ <caption><para>Detailed view over the private loan to
+ Peter</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="loans_personalLoanToSomeOne_accounts">
+ <title>Accounts for the loan</title>
+
+ <para>Lets start with the following acccounts (all accounts have the
+ same currency, in this case USD)</para>
+
+ <literallayout>
+Assets:Bank:USD
+Assets:Money owed to you:Peter
+Income:Interest Income:Peter
+Equity:Opening Balances:USD
+ </literallayout>
+ </sect2>
+
+ <sect2 id="loans_personalLoanToSomeOne_InitialSetup">
+ <title>Lending the money</title>
+
+ <para>When you have lended money to your friend, you have in fact moved
+ money from an Asset account (like Bank, Checking or similar) to your
+ Asset account "Money owed to you". To record this you enter the
+ following transaction into the Assets:Money owed to you:Friend
+ account.</para>
+
+ <para><table>
+ <title>Personal loan to a Friend</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Money owed to you:Friend</entry>
+
+ <entry>$2,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Bank:USD</entry>
+
+ <entry></entry>
+
+ <entry>$2,000</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <screenshot id="loans_PrivateLoanInitial">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loan_PrivateLoanInitial.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Lended money</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after lending
+ money</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="loans_personalLoanToSomeOne_FirstPayment">
+ <title>Receiving first payment</title>
+
+ <para>When the first payment ($115.56) is received, you will need to
+ determine how much is for the principal loan, and how much is for the
+ loan interest.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Outstanding loan amount this period = $2,000</para>
+ </listitem>
+
+ <listitem>
+ <para>Payment per month = $115.56</para>
+ </listitem>
+
+ <listitem>
+ <para>Payment breakdown</para>
+ </listitem>
+
+ <listitem>
+ <para>5%/12 * $2,000 = $8.33 Interest</para>
+ </listitem>
+
+ <listitem>
+ <para>$115.56 - $8.33 = $107.23 Principle</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>This can be translated to the following GnuCash entry</para>
+
+ <screenshot id="loans_PrivateLoanFirstPayment">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loan_PrivateLoanFirstPayment.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>First payment</phrase>
+ </textobject>
+
+ <caption><para>Detailed view over first payment</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The balance on Peters loan is now $2,000 - $107.23 =
+ $1,892.77</para>
+ </sect2>
+
+ <sect2 id="loans_personalLoanToSomeOne_SecondPayment">
+ <title>Receiving second payment</title>
+
+ <para>When the second payment ($115.56) is received, you will again need
+ to determine how much is for the principal loan, and how much is for the
+ loan interest.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Outstanding loan amount this period = $1,892.77</para>
+ </listitem>
+
+ <listitem>
+ <para>Payment per month = $115.56</para>
+ </listitem>
+
+ <listitem>
+ <para>Payment breakdown</para>
+ </listitem>
+
+ <listitem>
+ <para>5%/12 * $2,000 = $7.89 Interest</para>
+ </listitem>
+
+ <listitem>
+ <para>$115.56 - $7.89 = $107.67 Principle</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>This can be translated to the following GnuCash entry</para>
+
+ <screenshot id="loans_PrivateLoanSecondPayment">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loan_PrivateLoanSecondPayment.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Second payment</phrase>
+ </textobject>
+
+ <caption><para>Detailed view over the second
+ payment</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The balance on Peters loan is now $1,892.77 - $107.67 =
+ $1,785.10</para>
+
+ <para>The Chart of accounts looks now like this</para>
+
+ <screenshot id="loans_PrivateLoanSecondPaymentAccounts">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/loan_PrivateLoanSecondPaymentAccounts.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart of Accounts after second payment</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after second
+ payment</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>As you can see, the interest varies for every month, as well as
+ the principal amount. So for every payment you receive you need to
+ calculate the proper amounts for your various split entries.</para>
+
+ <para>The interest amount will be less and less for every payment (since
+ it is calculated on a smaller loan amount all the time), until the last
+ payment where it is more or less 0. Please review the Figure of Detailed
+ view over private loan to Peter for more details</para>
+ </sect2>
+ </sect1>
+
+ <sect1 id="loans_CarLoan">
+ <title>Automobile Loan (How-To)</title>
+
+ <para>The Automobile Loan, or in common terms, Car Loan, is treated more
+ or less exactly as the House loan. The only difference is different
+ accounts, and different interest rates.</para>
+
+ <para><literallayout>Basic Car Loan Account Structure
+
+-Asset
+ -Current Assets
+ -Savings Account
+ -Fixed Assets
+ -Car
+-Liability
+ -Loans
+ -Car Loan
+-Expenses
+ -Interest
+ -Car Loan Interest
+ -Car Loan Adm Fees</literallayout></para>
+
+ <para>For more information, please check <xref
+ linkend="loans_mortgage1" /></para>
+ </sect1>
+
+ <sect1 id="loans_Reconciling">
+ <title>Reconciling with the Loan Statements (How-To)</title>
+
+ <para>Reconciling a loan statement is no different from reconciling a bank
+ or credit card statement.</para>
+
+ <para>During the period you should have recorded all the various loan
+ related transactions, and every one of them are touching the
+ <guilabel>Libility:Loans:<Loan></guilabel> account. For instance,
+ paying of a bit of the loan, decreases your <emphasis>Bank
+ Account,</emphasis> and increases the <emphasis>Loan account</emphasis>,
+ <emphasis>Loan Interest</emphasis> as well as perhaps <emphasis>Loan
+ administration fee</emphasis>.</para>
+
+ <para>With the loan statement in your hands, open the Loan account, start
+ the reconcile druid, and tick of all the various transaction you have
+ recorded. When you have finished, the reconciling difference should be 0,
+ and if it is not, then you will have to go through the account and compare
+ it with the loan statement to find the difference. When you have reached a
+ 0 in difference, then your loan account is reconciled and you can finish
+ the Reconcile druid.</para>
+
+ <para>For more information on how to Reconcile, please check <xref
+ linkend="txns-reconcile1" /></para>
+ </sect1>
+
+ <sect1>
+ <title>Selling a house or a car (How-To)</title>
+
+ <para>When you will record the selling of your house in GnuCash you have
+ some different options. Here we will go through two of them, one in which
+ we only recorded the purchase amount, and now the selling amount. The other
+ where we have followed the ups and downs on the property market and registered
+ various Unrealized gains over the time.</para>
+
+ <para></para>
+
+ <sect2>
+ <title>Simple Transaction</title>
+
+ <para>In this way we only record the proper sale amount.</para>
+
+ <para>Lets work through two samples of selling a house, one with a
+ profit, and one with a loss. If you want to sell a car instead, just
+ substitute the house accounts with a car account.</para>
+
+ <para><literallayout>
+-Assets
+ -Fixed Assets
+ -House
+ -Current Assets
+ -Saving
+-Income
+ -Capital Gains Long
+ -House
+ </literallayout></para>
+
+ <itemizedlist>
+ <listitem>
+ <para>We bought a house for $300,000 once upon a time, and managed
+ to sell it for $600,000. How do we record this?</para>
+
+ <para>To record this we need to increase our bank account with the
+ $600k, and decrease some other accounts with $600k. The house
+ account only contains $300k which is what we bought it for, so we
+ move this amount to our bank account. That means we are lacking
+ #300k. This amount we fetch from the Income:Captial Gains Long:House
+ account. The split transaction you enter into your
+ <emphasis>bank</emphasis> account (<guilabel>Assets:Fixed
+ Assets:Saving</guilabel>) should look like this.</para>
+
+ <para><table>
+ <title>Selling an asset (house) with a profit</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Saving</entry>
+
+ <entry>$600,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:House</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+
+ <row>
+ <entry>Income:Capital Gains Long:House</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+ </listitem>
+
+ <listitem>
+ <para>We bought a house for $300,000 once upon a time, but due to a
+ newly created airport, we could only sell it for $230,000. How do we
+ record this?</para>
+
+ <para>To record this we need to increase our bank account with the
+ $230k, and decrease some other accounts with $230k. The house
+ account contains $300k which is more than what we sold it for. So
+ lets move $230k of it to our bank account. After this we have $70k
+ remaining in our house account which needs to be removed. We move it
+ to our Income:Capital Gains Long:House account, which will indicate
+ a loss. The split transaction you enter into your
+ <emphasis>house</emphasis> account (<guilabel>Assets:Fixed
+ Assets:House</guilabel>) should look like this.</para>
+
+ <para><table>
+ <title>Selling an asset (house) with a loss</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:House</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Saving</entry>
+
+ <entry>$230,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Income:Capital Gains Long:House</entry>
+
+ <entry>$70,000</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+ </listitem>
+ </itemizedlist>
+
+ </sect2>
+
+ <sect2>
+ <title>A More Complex Transaction</title>
+
+ <para>In this example we will touch a little on some more complicated
+ accounting principles. For more details on this subject please check
+ <xref linkend="chapter_capgain"></xref></para>
+
+ <para>Here we will only touch on the case when we have accurately estimated
+ the current value of our house. For the other cases (over-, and
+ under-estimated), please check <xref linkend="chapter_capgain"></xref>.</para>
+
+ <para><literallayout>
+-Assets
+ -Fixed Assets
+ -House
+ -Cost
+ -Unrealized Gain
+ -Current Assets
+ -Saving
+-Income
+ -Realized Gain
+ -House
+ -Unrealized Gain
+ -House
+ </literallayout></para>
+
+ <para>We bought a house for $300,000 once upon a time, and over
+ the years we have keept a close look on the market and updated our
+ records with the estimated current value of our house. At the time
+ we want to sell our house, we have determined that it is valued at
+ $600,000. </para>
+
+ <para>The difference between $600,000 (estimated market value), and
+ $300,000 (purchase value) is the current Unrealized Gain value. Therefore
+ we have a total of $300,000 in our
+ <guilabel>Assets:Fixed Assets:House:Unrealized Gain</guilabel> account</para>
+
+ <para>How do we record this sell transaction?</para>
+
+ <para>To record this we need to increase our bank account with the
+ $600k, and decrease some other accounts with $600k.
+ We must first change from unrealized gain to realized gain
+ for our Income accounts.
+ Lastly we transfer the full amounts from the "Assets:Fixed Assets:House"
+ sub-accounts.</para>
+
+ <para>The transaction you enter into your
+ <guilabel>Income:Realized Gain:House</guilabel>
+ account should look like this.</para>
+
+ <para><table>
+ <title>Selling an asset (house) with a profit</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Income:Realized Gain:House</entry>
+
+ <entry>$300,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Income:Unrealized Gain:House</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+
+ </tbody>
+ </tgroup>
+ </table></para>
+
+ <para>The transaction you enter into your
+ <guilabel>Assets:Current Assets:Saving</guilabel> account
+ should look like this.</para>
+
+ <para><table>
+ <title>Selling an asset (house) with a profit 2</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Saving</entry>
+
+ <entry>$600,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:House:Cost</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:House:Unrealized Gain</entry>
+
+ <entry></entry>
+
+ <entry>$300,000</entry>
+ </row>
+
+ </tbody>
+ </tgroup>
+ </table></para>
+ <para>After having recorded these transactions we see that our House
+ Asset have a value of 0, our Savings account have increased with $600,000,
+ and lastly, the Income:Realized Gain have increased to $300,000.</para>
+
+ </sect2>
+
+
+
+ </sect1>
+
+ <sect1 id="loans_missing1">
+ <title>Missing Loan Documentation</title>
+
+ <literallayout>
-Entering a Payment Schedule
-Monthly Payments (How-To)
+ ---See the Mortgage druid
+ ----ARM 10/1 means 10 year fixed interest rate, then changes every year
+ ----ARM 10/3 means 10 year fixed interest rate, then changes every third year
-Final Payment (How-To)
+ ---Same as a normal payment, but you get the figures from the bank
+ ---How to fix 10 amortization and then a final bulk payment setup?
- -Selling a House or Automobile (How-To)
-
- -Reconciling with the Loan Statements (How-To)
-
-Putting It All Together
</literallayout>
-
- </sect1>
-
- </chapter>
+ </sect1>
+</chapter>
Modified: gnucash-docs/trunk/guide/C/ch_oview.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_oview.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_oview.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -432,7 +432,7 @@
<para><emphasis>Managing Your Business Finances</emphasis> discusses the
use of GnuCash in business accounting: <itemizedlist>
<listitem>
- <para>Chapter 11: Depreciation</para>
+ <para><xref linkend="chapter_dep"></xref></para>
</listitem>
<listitem>
Modified: gnucash-docs/trunk/guide/C/ch_txns.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_txns.xml 2006-04-26 00:03:08 UTC (rev 13853)
+++ gnucash-docs/trunk/guide/C/ch_txns.xml 2006-04-26 01:27:03 UTC (rev 13854)
@@ -1,3 +1,4 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
Version: 1.9.0
@@ -83,11 +84,9 @@
<phrase>The Checking Account - Register</phrase>
</textobject>
- <caption>
- <para>This image shows <guilabel>Asset:Checking -
- Register</guilabel> after inserting a starting value
- transaction.</para>
- </caption>
+ <caption><para>This image shows <guilabel>Asset:Checking -
+ Register</guilabel> after inserting a starting value
+ transaction.</para></caption>
</mediaobject>
</screenshot>
@@ -114,11 +113,9 @@
<phrase>The Checking Account - Register</phrase>
</textobject>
- <caption>
- <para>This image shows <guilabel>Asset:Checking -
- Register</guilabel> after adding a transaction for
- groceries.</para>
- </caption>
+ <caption><para>This image shows <guilabel>Asset:Checking -
+ Register</guilabel> after adding a transaction for
+ groceries.</para></caption>
</mediaobject>
</screenshot>
</sect2>
@@ -163,11 +160,9 @@
<phrase>Account Register - Split Transaction</phrase>
</textobject>
- <caption>
- <para>This image shows <guilabel>Asset:Checking -
- Register</guilabel> after adding a split transaction for
- salary.</para>
- </caption>
+ <caption><para>This image shows <guilabel>Asset:Checking -
+ Register</guilabel> after adding a split transaction for
+ salary.</para></caption>
</mediaobject>
</screenshot>
</sect2>
@@ -207,23 +202,24 @@
<para>The partial lines below the transaction line are the
<emphasis>split lines</emphasis>, and they are separated by gray lines.
As you highlight one of the split lines, the column headings change to
- show the split-related fields: <screenshot id="txns-registersplit2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_registersplit2.png"
- format="PNG" srccredit="Bengt Thuree" />
- </imageobject>
+ show the split-related fields:</para>
- <textobject>
- <phrase>How split headings change</phrase>
- </textobject>
+ <screenshot id="txns-registersplit2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_registersplit2.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>This image shows how split headings change.</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>How split headings change</phrase>
+ </textobject>
+ <caption><para>This image shows how split headings
+ change.</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>Each split contains an optional <guilabel>Action</guilabel>, or
type of split, which you can either type in or choose from a pull-down
list. The split also contains an optional <guilabel>Memo</guilabel>
@@ -234,39 +230,38 @@
amount of the split and whether money is coming into or going out of the
account.</para>
- <para>As we discussed in <xref linkend="basics-accounting1"></xref>,
- total debits (left-column entries)
- must equal total credits (right-column entries) for each transaction. In
- the example shown above, the total debits equal the total credits, so
- this transaction is balanced. If you notice, the transaction line
- contains the same debit amount as the <guilabel>Checking</guilabel>
- split line. Why is this shown twice? Because the transaction line is
- merely a <emphasis>summary</emphasis> of the transaction's effect on the
- current account. The same transaction in a different account will have a
- different transaction line, one that shows the effect on that particular
- account. You can see this by highlighting another split line and
- clicking the <guilabel>Jump</guilabel> button on the tool bar.</para>
+ <para>As we discussed in <xref linkend="basics-accounting1" />, total
+ debits (left-column entries) must equal total credits (right-column
+ entries) for each transaction. In the example shown above, the total
+ debits equal the total credits, so this transaction is balanced. If you
+ notice, the transaction line contains the same debit amount as the
+ <guilabel>Checking</guilabel> split line. Why is this shown twice?
+ Because the transaction line is merely a <emphasis>summary</emphasis> of
+ the transaction's effect on the current account. The same transaction in
+ a different account will have a different transaction line, one that
+ shows the effect on that particular account. You can see this by
+ highlighting another split line and clicking the
+ <guilabel>Jump</guilabel> button on the tool bar.</para>
<para>In this example, if you jump to the
<guilabel>Income:Salary</guilabel> account, GnuCash brings up the same
- transaction in the <guilabel>Income:Salary - Register</guilabel>:
+ transaction in the <guilabel>Income:Salary - Register</guilabel>:</para>
+
<screenshot id="txns-registersplit3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_registersplit3.png"
- format="PNG" srccredit="Bengt Thuree" />
- </imageobject>
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_registersplit3.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <textobject>
- <phrase>A jump to the Income:Salary account</phrase>
- </textobject>
+ <textobject>
+ <phrase>A jump to the Income:Salary account</phrase>
+ </textobject>
- <caption>
- <para>This image shows a jump to the <guilabel>Income:Salary
- </guilabel> account.</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <caption><para>This image shows a jump to the
+ <guilabel>Income:Salary </guilabel> account.</para></caption>
+ </mediaobject>
+ </screenshot>
<para>Note that the transaction line total now summarizes the effect on
the <guilabel>Income:Salary</guilabel> account instead of the
@@ -516,9 +511,7 @@
<phrase>Reconcile Window</phrase>
</textobject>
- <caption>
- <para>The initial reconcile window.</para>
- </caption>
+ <caption><para>The initial reconcile window.</para></caption>
</mediaobject>
</screenshot>
@@ -567,9 +560,8 @@
<phrase>Reconcile Window</phrase>
</textobject>
- <caption>
- <para>The transactions listing in the reconcile window.</para>
- </caption>
+ <caption><para>The transactions listing in the reconcile
+ window.</para></caption>
</mediaobject>
</screenshot>
@@ -623,7 +615,7 @@
you look at the status bar at the bottom of the account register, you
will see a summary of what has been reconciled and what has been cleared
(<guilabel>Cleared:USD 954.79 Reconciled:USD 0.00</guilabel>)</para>
-
+
<screenshot id="txns-reconcile-window-3">
<mediaobject>
<imageobject>
@@ -635,12 +627,10 @@
<phrase>Checking account</phrase>
</textobject>
- <caption>
- <para>The Checking account after postponed the reconciliation.</para>
- </caption>
+ <caption><para>The Checking account after postponed the
+ reconciliation.</para></caption>
</mediaobject>
</screenshot>
-
</sect2>
</sect1>
@@ -664,90 +654,89 @@
<title>Creating from the Ledger</title>
<para>Enter the first occurrence of your to-schedule transaction in the
- ledger. <screenshot id="txns-sxn-ledger-1">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_ledger1.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ ledger.</para>
- <textobject>
- <phrase>Step one creating scheduled transaction from the
- ledger</phrase>
- </textobject>
+ <screenshot id="txns-sxn-ledger-1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_ledger1.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Step one creating scheduled transaction from the
- ledger</para>
- </caption>
- </mediaobject>
- </screenshot>
- </para>
+ <textobject>
+ <phrase>Step one creating scheduled transaction from the
+ ledger</phrase>
+ </textobject>
+ <caption><para>Step one creating scheduled transaction from the
+ ledger</para></caption>
+ </mediaobject>
+ </screenshot>
+
<note>
<para>Since we did not create the Expence:Internet account, GnuCash
will prompt us to create it.</para>
</note>
- <para>Then you right click on your transaction and select "Schedule..."
+ <para>Then you right click on your transaction and select
+ "Schedule..."</para>
+
<screenshot id="txns-sxn-ledger-2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_ledger2.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_ledger2.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <textobject>
- <phrase>Step two creating scheduled transaction from the
- ledger</phrase>
- </textobject>
+ <textobject>
+ <phrase>Step two creating scheduled transaction from the
+ ledger</phrase>
+ </textobject>
- <caption>
- <para>Step two creating scheduled transaction from the
- ledger</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <caption><para>Step two creating scheduled transaction from the
+ ledger</para></caption>
+ </mediaobject>
+ </screenshot>
- <para>A window like this will appear: <screenshot id="txns-sxn-ledger-3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_ledger3.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <para>A window like this will appear:</para>
- <textobject>
- <phrase>Step three creating scheduled transaction from the
- ledger</phrase>
- </textobject>
+ <screenshot id="txns-sxn-ledger-3">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_ledger3.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Step three creating scheduled transaction from the
- ledger</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Step three creating scheduled transaction from the
+ ledger</phrase>
+ </textobject>
+ <caption><para>Step three creating scheduled transaction from the
+ ledger</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>Let's fill the values, we know that the subscription is taken on
the 28th each month, and the next one is for next month (since we
- entered the one for this month manually) : <screenshot
- id="txns-sxn-ledger-4">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_ledger4.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ entered the one for this month manually) :</para>
- <textobject>
- <phrase>Filling in data to a scheduled transaction</phrase>
- </textobject>
+ <screenshot id="txns-sxn-ledger-4">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_ledger4.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Filling in data to a scheduled transaction</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Filling in data to a scheduled transaction</phrase>
+ </textobject>
+ <caption><para>Filling in data to a scheduled
+ transaction</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>Click the OK button, and the transaction will be scheduled.
GnuCash now has memorized this scheduled transaction and on the 28th of
next month, it will pop up a window asking if it should create it (see
@@ -763,66 +752,65 @@
<para>From the main accounts windows, go in the Actions menu, select
Scheduled Transactions, a submenu will open in which you'll click
- Scheduled transaction Editor. <screenshot id="txns-sxn-editor-1">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor1.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ Scheduled transaction Editor.</para>
- <textobject>
- <phrase>Step one creating scheduled transaction from the
- editor</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor1.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Step one creating scheduled transaction from the
- editor</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Step one creating scheduled transaction from the
+ editor</phrase>
+ </textobject>
- <para>A window like this will pop up : <screenshot
- id="txns-sxn-editor-2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor2.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <caption><para>Step one creating scheduled transaction from the
+ editor</para></caption>
+ </mediaobject>
+ </screenshot>
- <textobject>
- <phrase>Step two creating scheduled transaction from the
- editor</phrase>
- </textobject>
+ <para>A window like this will pop up :</para>
- <caption>
- <para>Step two creating scheduled transaction from the
- editor</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <screenshot id="txns-sxn-editor-2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor2.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+ <textobject>
+ <phrase>Step two creating scheduled transaction from the
+ editor</phrase>
+ </textobject>
+
+ <caption><para>Step two creating scheduled transaction from the
+ editor</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>This window contains a list, now empty, of all the scheduled
transactions. Let's create a new one by clicking on the "New" button,
- another window will pop up : <screenshot id="txns-sxn-editor-3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor3.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ another window will pop up :</para>
- <textobject>
- <phrase>Step three creating scheduled transaction from the
- editor</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-3">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor3.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Step three creating scheduled transaction from the
- editor</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Step three creating scheduled transaction from the
+ editor</phrase>
+ </textobject>
+ <caption><para>Step three creating scheduled transaction from the
+ editor</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>This window may seem complicated but it's fairly eay to
understand. First, let's enter a name for this new scheduled
transaction, this name will only identify it in the Scheduled
@@ -870,47 +858,46 @@
transaction, click on the "Enter" button to validate it.</para>
</note>
- <para>Now, you should have a window like this: <screenshot
- id="txns-sxn-editor-4">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor4.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <para>Now, you should have a window like this:</para>
- <textobject>
- <phrase>Validate a scheduled transaction from the
- editor</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-4">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor4.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Validate a scheduled transaction from the editor</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Validate a scheduled transaction from the editor</phrase>
+ </textobject>
+ <caption><para>Validate a scheduled transaction from the
+ editor</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>Remember to click on the Enter icon, to validate and enter the
transaction.</para>
<para>Now click OK, it takes you to the previous window, now with one
- item in the list : <screenshot id="txns-sxn-editor-5">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor5.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ item in the list :</para>
- <textobject>
- <phrase>Validate a scheduled transaction from the
- editor</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-5">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor5.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Validate a scheduled transaction from the editor</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Validate a scheduled transaction from the editor</phrase>
+ </textobject>
+ <caption><para>Validate a scheduled transaction from the
+ editor</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>If you click in the calendar part on the first day of one month, a
small window, following your mouse, will show you what is planned for
this day.</para>
@@ -927,45 +914,45 @@
<para>From now on, on each first day of month (or the next time you
launch GnuCash after this day) a windows will pop up to remind you to
- create this transaction : <screenshot id="txns-sxn-editor-6">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor6.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ create this transaction :</para>
- <textobject>
- <phrase>Scheduled transaction popup reminder</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-6">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor6.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Scheduled transaction popup reminder</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Scheduled transaction popup reminder</phrase>
+ </textobject>
+ <caption><para>Scheduled transaction popup reminder</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>You can click on the list entry to see the detailed transaction in
the lower part, then just click on <guibutton>Forward</guibutton> to
advance.</para>
- <para>When you click Forward, a window summarizing all transactions to be
- created will appear : <screenshot id="txns-sxn-editor-7">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor7.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <para>When you click Forward, a window summarizing all transactions to
+ be created will appear :</para>
- <textobject>
- <phrase>Scheduled transaction summary</phrase>
- </textobject>
+ <screenshot id="txns-sxn-editor-7">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor7.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <caption>
- <para>Scheduled transaction summary</para>
- </caption>
- </mediaobject>
- </screenshot></para>
+ <textobject>
+ <phrase>Scheduled transaction summary</phrase>
+ </textobject>
+ <caption><para>Scheduled transaction summary</para></caption>
+ </mediaobject>
+ </screenshot>
+
<para>In this window you can adjust the transactions that will be
created. For example, this month my ISP made a special offer and my
subscription only costed 10EUR, so I just modified the amount from 20 to
@@ -978,29 +965,29 @@
<para>Then if you take a look in your bank account, you'll see the
transaction has been created :</para>
-
+
<screenshot id="txns-sxn-editor-8">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/txns_sxn_editor8.png" format="PNG"
- srccredit="Bengt Thuree" />
- </imageobject>
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_sxn_editor8.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <textobject>
- <phrase>Scheduled transaction created transaction</phrase>
- </textobject>
+ <textobject>
+ <phrase>Scheduled transaction created transaction</phrase>
+ </textobject>
- <caption>
- <para>Scheduled transaction created transaction</para>
- </caption>
- </mediaobject>
- </screenshot>
- <note>
- <para>If you entered the transaction for 28 of April at this stage,
- then please revert back to the last saved GnuCash file.
- <guimenu>File</guimenu> -><guimenuitem> Open</guimenuitem> and
- choose <filename>gcashdata_3</filename></para>
- </note>
+ <caption><para>Scheduled transaction created
+ transaction</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <note>
+ <para>If you entered the transaction for 28 of April at this stage,
+ then please revert back to the last saved GnuCash file.
+ <guimenu>File</guimenu> -><guimenuitem> Open</guimenuitem> and
+ choose <filename>gcashdata_3</filename></para>
+ </note>
</sect2>
</sect1>
@@ -1019,8 +1006,8 @@
<para>Start with opening the previous datafile we stored,
<filename>gcashdata_3</filename>, and store it as
<filename>gcashdata_4</filename> directly. The main window should look
- something like this: </para>
-
+ something like this:</para>
+
<screenshot id="txns-puttoget1-Charts">
<mediaobject>
<imageobject>
@@ -1032,12 +1019,10 @@
<phrase>Starting point for Putting It All Together</phrase>
</textobject>
- <caption>
- <para>This image shows the starting point for this section.</para>
- </caption>
+ <caption><para>This image shows the starting point for this
+ section.</para></caption>
</mediaobject>
</screenshot>
-
</sect2>
<sect2 id="txns-puttoget-open2">
@@ -1070,9 +1055,9 @@
<listitem>
<para>From the <guilabel>Asset:Checking</guilabel> account register
- window, enter a basic 2 account transaction to set your starting balance to
- $1000, transferred from <guilabel>Equity:Opening Balance</guilabel>.
- </para>
+ window, enter a basic 2 account transaction to set your starting
+ balance to $1000, transferred from <guilabel>Equity:Opening
+ Balance</guilabel>.</para>
</listitem>
<listitem>
@@ -1094,30 +1079,28 @@
<screenshot id="txns-puttoget1-Charts1">
<mediaobject>
<imageobject>
- <imagedata fileref="figures/txns_puttoget_Charts1.png" format="PNG"
- srccredit="Bengt Thuree" />
+ <imagedata fileref="figures/txns_puttoget_Charts1.png"
+ format="PNG" srccredit="Bengt Thuree" />
</imageobject>
<textobject>
<phrase>Chart accounts after setting opening balance</phrase>
</textobject>
- <caption>
- <para>This image shows the opening balances.</para>
- </caption>
+ <caption><para>This image shows the opening
+ balances.</para></caption>
</mediaobject>
</screenshot>
-
</sect2>
<sect2 id="txns-puttoget-add2">
<title>Additional Transaction Examples</title>
-
+
<para>Now add some more transactions to simulate a month's expenses.
During the month, $78 is spent on electricity, $45 on phone, and $350 on
- rent. All paid by check.We also spend $45.21 on groceries, receive $670 as
- salary, and paids our Internet bill this month, Finally, let's move $100 from the savings
- account to the checking account.</para>
+ rent. All paid by check.We also spend $45.21 on groceries, receive $670
+ as salary, and paids our Internet bill this month, Finally, let's move
+ $100 from the savings account to the checking account.</para>
<orderedlist>
<listitem>
@@ -1163,13 +1146,14 @@
rent, since the value of the rent is likely to be constant for the
foreseeable future. <itemizedlist>
<listitem>
- <para>Start by clicking on the current (April 28) rent transaction, and
- click on the <guilabel>Schedule</guilabel> icon</para>
+ <para>Start by clicking on the current (April 28) rent
+ transaction, and click on the <guilabel>Schedule</guilabel>
+ icon</para>
</listitem>
<listitem>
- <para>Change to <guilabel>Monthly</guilabel>, change description if needed
- and press OK</para>
+ <para>Change to <guilabel>Monthly</guilabel>, change
+ description if needed and press OK</para>
</listitem>
</itemizedlist></para>
</listitem>
@@ -1177,29 +1161,28 @@
<listitem>
<para>To transfer money from you savings account to your checking
account, open the <guilabel>Assets:Savings</guilabel> account
- regischildsplay-alphabet-sounds-svter, add a new transaction setting the Transfer to
- <guilabel>Assets:Checking</guilabel> in the amount of $100 (date 6
- March, 2006).</para>
+ regischildsplay-alphabet-sounds-svter, add a new transaction setting
+ the Transfer to <guilabel>Assets:Checking</guilabel> in the amount
+ of $100 (date 6 March, 2006).</para>
</listitem>
-
- <listitem>
- <para>As another example of a simple 2 account transaction, add another
- transaction to describe the purchase of $45.21 worth of groceries on 5 of March.
- From within the Asset:Checking account, you would set
- <guilabel>Transfer</guilabel> to
- <guilabel>Expenses:Groceries</guilabel>. The account register should now
- appear:
- </para>
+
+ <listitem>
+ <para>As another example of a simple 2 account transaction, add
+ another transaction to describe the purchase of $45.21 worth of
+ groceries on 5 of March. From within the Asset:Checking account, you
+ would set <guilabel>Transfer</guilabel> to
+ <guilabel>Expenses:Groceries</guilabel>. The account register should
+ now appear:</para>
</listitem>
<listitem>
- <para>To add a paycheck transaction from the
- <guilabel>Assets:Checking</guilabel> account register window, click on a
- new transaction line, and click on <guilabel>Split</guilabel>. First
- enter the description of this transaction on the first line (eg:
- "Employers R Us"), as well as the date (14 March). In the "split" line below this,
- enter the deposit
- into <guilabel>Asset:Checking</guilabel> (eg:$670) (This is due to a
+ <para>To add a paycheck transaction from the
+ <guilabel>Assets:Checking</guilabel> account register window, click
+ on a new transaction line, and click on <guilabel>Split</guilabel>.
+ First enter the description of this transaction on the first line
+ (eg: "Employers R Us"), as well as the date (14 March). In the
+ "split" line below this, enter the deposit into
+ <guilabel>Asset:Checking</guilabel> (eg:$670) (This is due to a
current bug, that demands the first line in a split is the actual
account). Follow this with the various tax deposits
(<guilabel>Asset:Checking</guilabel> (eg: $670),
@@ -1207,72 +1190,64 @@
<guilabel>Expenses:Taxes:Medicare</guilabel> (eg: $90), and
<guilabel>Expenses:Taxes:Social Security</guilabel> (eg: $60)) and
lastly the gross total of your paycheck (eg: $1000) as a withdrawal
- transfer from <guilabel>Income:Salary</guilabel>.
- </para>
+ transfer from <guilabel>Income:Salary</guilabel>.</para>
</listitem>
- <listitem>
- <para>
- We also need to pay for our Internet subscription of 20 USD
- on the 28th.
- </para>
- </listitem>
-
+ <listitem>
+ <para>We also need to pay for our Internet subscription of 20 USD on
+ the 28th.</para>
+ </listitem>
</orderedlist>
- <screenshot id="txns-puttoget2-Charts1">
+ <screenshot id="txns-puttoget2-Charts1">
<mediaobject>
<imageobject>
- <imagedata fileref="figures/txns_puttoget_Charts2.png" format="PNG"
- srccredit="Bengt Thuree" />
+ <imagedata fileref="figures/txns_puttoget_Charts2.png"
+ format="PNG" srccredit="Bengt Thuree" />
</imageobject>
<textobject>
- <phrase>Chart accounts after setting all the various transactions</phrase>
+ <phrase>Chart accounts after setting all the various
+ transactions</phrase>
</textobject>
- <caption>
- <para>This image shows the ending balances after
- <xref linkend="chapter_txns"></xref>.</para>
- </caption>
+ <caption><para>This image shows the ending balances after <xref
+ linkend="chapter_txns" />.</para></caption>
</mediaobject>
</screenshot>
-
-
</sect2>
<sect2 id="txns-puttoget-save">
<title>Save file</title>
- <para>Before we go to the report section, lets save the GnuCash data file
- (<filename>gcashdata_4</filename>).</para>
+ <para>Before we go to the report section, lets save the GnuCash data
+ file (<filename>gcashdata_4</filename>).</para>
</sect2>
-
<sect2 id="txns-puttoget-reports">
<title>Reports</title>
-
- <para>But only having data available on the computer screen will not make your accountant
- happy, therefore GnuCash comes with a large number of highly customizable reports.
- </para>
-
- <note><para>More details on the reports will be in the Report chapter</para></note>
-
- <para>Lets have a look at a <guilabel>Cash Flow</guilabel>, and a
- <guilabel>Transaction</guilabel> Report.
- </para>
-
+ <para>But only having data available on the computer screen will not
+ make your accountant happy, therefore GnuCash comes with a large number
+ of highly customizable reports.</para>
+
+ <note>
+ <para>More details on the reports will be in the Report chapter</para>
+ </note>
+
+ <para>Lets have a look at a <guilabel>Cash Flow</guilabel>, and a
+ <guilabel>Transaction</guilabel> Report.</para>
+
<orderedlist>
<listitem>
- <para>First lets have a look at the <guilabel>Cash Flow</guilabel> report
- for the month of March.</para>
- <para>Select the cash flow report from <guimenu>Reports</guimenu> ->
- <guisubmenu>Income & Expense</guisubmenu> ->
- <guimenuitem>Cash Flow</guimenuitem>
- </para>
-
- <screenshot id="txns-puttoget2-Cash">
+ <para>First lets have a look at the <guilabel>Cash Flow</guilabel>
+ report for the month of March.</para>
+
+ <para>Select the cash flow report from <guimenu>Reports</guimenu>
+ -> <guisubmenu>Income & Expense</guisubmenu> ->
+ <guimenuitem>Cash Flow</guimenuitem></para>
+
+ <screenshot id="txns-puttoget2-Cash">
<mediaobject>
<imageobject>
<imagedata fileref="figures/txns_CashFlow.png" format="PNG"
@@ -1283,76 +1258,63 @@
<phrase>Cash Flow report for the month of March</phrase>
</textobject>
- <caption>
- <para>This image shows the Cash Flow report after
- <xref linkend="chapter_txns"></xref>.</para>
- </caption>
+ <caption><para>This image shows the Cash Flow report after <xref
+ linkend="chapter_txns" />.</para></caption>
</mediaobject>
</screenshot>
- <para>To get this customized report, right click in the report and choose
- <guilabel>Report Options</guilabel>. Then set the time period, and specify which
- accounts you want in the report
- </para>
+
+ <para>To get this customized report, right click in the report and
+ choose <guilabel>Report Options</guilabel>. Then set the time
+ period, and specify which accounts you want in the report</para>
</listitem>
<listitem>
- <para>Now lets have a look at corresponding transaction report for the Checking
- account.
- </para>
- <para>Select the transaction report from <guimenu>Reports</guimenu> ->
- <guimenuitem>Transaction Report</guimenuitem>
- </para>
-
- <screenshot id="txns-puttoget2-TransactionRptChecking">
+ <para>Now lets have a look at corresponding transaction report for
+ the Checking account.</para>
+
+ <para>Select the transaction report from <guimenu>Reports</guimenu>
+ -> <guimenuitem>Transaction Report</guimenuitem></para>
+
+ <screenshot id="txns-puttoget2-TransactionRptChecking">
<mediaobject>
<imageobject>
- <imagedata fileref="figures/txns_TransactionRptChecking.png"
+ <imagedata fileref="figures/txns_TransactionRptChecking.png"
format="PNG" srccredit="Bengt Thuree" />
</imageobject>
<textobject>
- <phrase>Transaction Report for the Checking account during March</phrase>
+ <phrase>Transaction Report for the Checking account during
+ March</phrase>
</textobject>
- <caption>
- <para>This image shows the Transaction Report for the Checking account
- during March.
- </para>
- </caption>
+ <caption><para>This image shows the Transaction Report for the
+ Checking account during March. </para></caption>
</mediaobject>
</screenshot>
-
</listitem>
-
-
+
<listitem>
- <para>Now lets change the transaction report to only show the various
- Expenses account.
- </para>
-
- <screenshot id="txns-puttoget2-TransactionRptExpenses">
+ <para>Now lets change the transaction report to only show the
+ various Expenses account.</para>
+
+ <screenshot id="txns-puttoget2-TransactionRptExpenses">
<mediaobject>
<imageobject>
- <imagedata fileref="figures/txns_TransactionRptExpenses.png"
+ <imagedata fileref="figures/txns_TransactionRptExpenses.png"
format="PNG" srccredit="Bengt Thuree" />
</imageobject>
<textobject>
- <phrase>Transaction Report for the Expenses accounts during March</phrase>
+ <phrase>Transaction Report for the Expenses accounts during
+ March</phrase>
</textobject>
- <caption>
- <para>This image shows the Transaction Report for the various Expense accounts
- during March.
- </para>
- </caption>
+ <caption><para>This image shows the Transaction Report for the
+ various Expense accounts during March. </para></caption>
</mediaobject>
</screenshot>
-
</listitem>
-
</orderedlist>
</sect2>
-
</sect1>
-</chapter>
+</chapter>
\ No newline at end of file
Modified: gnucash-docs/trunk/guide/C/figures/capgain_app2main.png
===================================================================
(Binary files differ)
Added: gnucash-docs/trunk/guide/C/figures/capgain_app3main.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/capgain_app3main.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Modified: gnucash-docs/trunk/guide/C/figures/capgain_appmain.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/dep_assetmain.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/dep_assetreg.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/dep_example.png
===================================================================
(Binary files differ)
Added: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanCalculation.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanCalculation.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Added: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanFirstPayment.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanFirstPayment.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Added: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanInitial.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanInitial.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Added: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPayment.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPayment.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Added: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPaymentAccounts.png
===================================================================
(Binary files differ)
Property changes on: gnucash-docs/trunk/guide/C/figures/loans_PrivateLoanSecondPaymentAccounts.png
___________________________________________________________________
Name: svn:mime-type
+ application/octet-stream
Modified: gnucash-docs/trunk/guide/C/figures/loans_fcalc.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/loans_mortgage1.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/loans_mortgage2.png
===================================================================
(Binary files differ)
Modified: gnucash-docs/trunk/guide/C/figures/loans_mortgage3.png
===================================================================
(Binary files differ)
More information about the gnucash-changes
mailing list