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

[Murugan Muruganandam]

You cannot pass entries in placeholder account. It is just a header account.




Saludos Cordiales


Murugan

________________________________
From: Kalpesh Patel <kalpesh.patel at usa.net>
Sent: Wednesday, February 1, 2023 11:13 AM
To: Murugan Muruganandam <m.muruganandam at hotmail.com>; 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.

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
>
>
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> Dr
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> Cr
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> Loan Against Asset 1
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> Asset:FA:Asset1
>
>
> Liability: Loan:Loan1
>
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> Expenses: FA:Loan Fees
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> Refinancing 1
>
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> Liability: Loan:Loan 2
>
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> Liability: Loan:Loan1
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> Asset: FA:Asset 2
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> Asset: FA:Asset 3
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> Expenses: FA:Loan Fees
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> Refinancing 2
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> Liability: Loan:Loan 3
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> Liability: Loan:Loan 2
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> Asset: Asset 4
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> Expenses: FA:Loan Fees
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> 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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