How to input fee charged from loan account and taken from savings account

[Maf. King]

On Sunday 29 Apr 2007, Brendan Simon wrote:

> My problem is how can I record this so my expense account for bank fees
> is incremented ???
> i.e. if the fee was for $10 and the $10 was transferred between my
> savings account to my loan account, then I should be able to input that
> transfer and have my savings account debited $10, my loan account
> credited $10 and my Expense:Fees account increased by $10.
>
> I don't see how 3 amounts can be entered into a double entry accounting
> system :-/  There must be some way to do this but my brain hurts and
> can't figure it out :(
>

Hi Brendan,

If I understand your description fully, then I think you need something like 
the following:

29/April/2007:   
Fee Charged 
$10		Expenses:Fee
	$10	Liability:Loan
(ie, the expense happens when the bank actually charge you)

30/April/2007:
Fee Paid
$10		Liability:loan
	$10	Checking
(the expense doesn't happen when *you* pay it - it is an "internal" transfer  
between your assets and your liabilities)

You can combine this into a single 4-split transaction, if that helps you keep 
track.  IANAA, by the way.
HTH,
Maf.

> Any suggestions ???
> Thanks, Brendan.