Mortgage payments in Income/Expense report?

Mike or Penny Novack stepbystepfarm at dialup4less.com
Sun Jul 2 09:46:19 EDT 2017


On 7/2/2017 7:02 AM, Dan Rawson wrote:
> I've set up my mortgage as a liability, and the checks are split to 
> the liability, property tax, and interest.  I'd like to be able to run 
> an Income/Expense report that ALSO includes the transfers to the 
> liability (let's face it, that's an "expense" :-), but the Liability 
> accounts aren't available to select when doing the income/expense 
> reports.
>
> The alternative would be using the account summary, but I can't do a 
> date range limit on that report.
>
> Do I have to write a custom report to to do this?
>
> Thanks!
>
> Dan 

Misunderstanding about the basics. When you consider that portion of 
your mortgage payment that is toward the principle (reducing the 
liability) that is NOT an expense (in terms of "income and expense"). 
You are thinking of it as an "expense" because it affects cash flow. 
That would be a different report. They show different things, and you 
can be OK in terms of "income and expense" but in trouble in terms of 
"cash flow" or vice versa (as well as being OK in both senses).

If you are having trouble understanding this concept you are probably 
doing your credit card accounting wrong. Each time you use your credit 
card to pay some expense you are crediting the credit card and debiting 
the expense, but no cash went out (yet). When you make a payment on the 
credit card (credit cash) you debit interest expense and credit card 
balance. Cash went out, but only what (if any*) was for interest an expense.

Michael D Novack

* Some of us do not pay any interest on our credit cards. We pay the 
balance in full each month.






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