[GNC] how-to track refinancing and other cost related to it.

[Kalpesh Patel]

Can the placeholder be the asset account itself? Is that a good practice?

------ Original Message ------
Received: Tue, 31 Jan 2023 09:05:37 AM EST
From: Murugan Muruganandam <m.muruganandam at hotmail.com>
To: "gnucash-user at lists.gnucash.org" <gnucash-user at lists.gnucash.org>,
"adrien.monteleone at lusfiber.net" <adrien.monteleone at lusfiber.net>, Kalpesh
Patel <kalpesh.patel at usa.net>
Subject: Re: [GNC] how-to track refinancing and other cost related to it.

> kalpesh
> 
> following can be an option. create a master placeholder as FA shown here to
track the details.
> 
> 
> 	                                    Dr	                            Cr
> Loan Against Asset 1	Asset:FA:Asset1	      Liability: Loan:Loan1
> 	                                Expenses: FA:Loan Fees	
> 		
> 		
> Refinancing 1		                                             Liability:
Loan:Loan 2
> 	                               Liability: Loan:Loan1	
> 	                               Asset: FA:Asset 2	
> 	                               Asset: FA:Asset 3	
> 	                              Expenses: FA:Loan Fees	
> 		
> Refinancing 2		                                                Liability:
Loan:Loan 3
> 	                              Liability: Loan:Loan 2	
> 	                              Asset: Asset 4	
> 	                              Expenses: FA:Loan Fees	
> 
> 
> 
> 
> 
> 
>  
>  
>  
>   
> 
> 
>   
> Dr
> 
>   
> Cr
> 
>  
>  
>   
> Loan Against Asset 1
> 
>   
> Asset:FA:Asset1
> 
>   
> Liability: Loan:Loan1
> 
>  
>  
>   
> 
> 
>   
> Expenses: FA:Loan Fees
> 
>  
>  
>   
> 
> 
>   
> 
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> 
> 
>   
> 
> 
>  
>  
>   
> Refinancing 1
> 
>   
> 
> 
>   
> Liability: Loan:Loan 2
> 
>  
>  
>   
> 
> 
>   
> Liability: Loan:Loan1
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> Asset: FA:Asset 2
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> Asset: FA:Asset 3
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> Expenses: FA:Loan Fees
> 
>  
>  
>   
> 
> 
>   
> 
> 
>   
> 
> 
>  
>  
>   
> Refinancing 2
> 
>   
> 
> 
>   
> Liability: Loan:Loan 3
> 
>  
>  
>   
> 
> 
>   
> Liability: Loan:Loan 2
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> Asset: Asset 4
> 
>   
> 
> 
>  
>  
>   
> 
> 
>   
> Expenses: FA:Loan Fees
> 
>  
> 
> 
> 
> 
> 
> 
> Saludos Cordiales
> 
> 
> 
> Murugan
> 
> 
> 
> 
> From: gnucash-user
<gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of
Adrien Monteleone <adrien.monteleone at lusfiber.net>
> Sent: Tuesday, January 31, 2023 12:40 AM
> To: gnucash-user at lists.gnucash.org <gnucash-user at lists.gnucash.org>
> Subject: Re: [GNC] how-to track refinancing and other cost related to it. 
>  
> Same way as on paper.
> 
> Both of those are expenses. There may be a way to do that with 
> sub-accounts though. I think some folks use an 'accumulated 
> depreciation' sub-account to not affect the main asset account for that 
> item.
> 
> The same might be possible with the financing expenses, but are those 
> really expenses of that particular asset? It was used as collateral to 
> finance something *else* so I would think those financing costs are part 
> of acquiring *them* and not the collateral.
> 
> Regards,
> Adrien
> 
> On 1/28/23 9:19 AM, Kalpesh Patel wrote:
> > Need some thoughts here as to how-to setup my accounts. Disclaimer: this
may
> > somewhat dwell into accounting side as well but given the wide breadth of
> > the user community wanted to hear all different ways to do setup GNC to
> > track everything down to last cent if possible.
> > 
> >   
> > 
> > Situation is as follows:
> > 
> >   
> > 
> > -          An asset was purchased with cash
> > 
> > -          Took a loan out against it a year later
> > 
> > -          The loan was refinanced 8 years later which paid off
two other
> > assets in the process in addition to previous loan
> > 
> > -          The loan was refinance again one year later which paid
off
> > previous loan plus it helped finance another asset
> > 
> >   
> > 
> > How should accounts be set up in GNC if someone wants to track the cost
of
> > financing plus the appreciation/depreciation that may be taking place
along
> > the way.
> 
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