"Fossies" - the Fresh Open Source Software Archive  

Source code changes of the file "guide/C/ch_loans.xml" between
gnucash-docs-4.12.tar.gz and gnucash-docs-4.13.tar.gz

About: GnuCash is a personal and small business finance application (documentation).

ch_loans.xml  (gnucash-docs-4.12)	:	ch_loans.xml  (gnucash-docs-4.13)
skipping to change at line 202		skipping to change at line 202
<sect1 id="loans_calcs1">		<sect1 id="loans_calcs1">
<title>Calculations</title>		<title>Calculations</title>
<para>Determining loan amortization schedules, periodic payment amounts, tot al payment value, or interest		<para>Determining loan amortization schedules, periodic payment amounts, tot al payment value, or interest
rates can be somewhat complex. To help facilitate these kinds of calculati ons, &app; has a		rates can be somewhat complex. To help facilitate these kinds of calculati ons, &app; has a
built-in <guilabel>Loan Repayment Calculator</guilabel>. To access the cal culator, go to <menuchoice>		built-in <guilabel>Loan Repayment Calculator</guilabel>. To access the cal culator, go to <menuchoice>
<guimenu>Tools</guimenu> <guimenuitem>Loan Repayment Calculator</guimenu item>		<guimenu>Tools</guimenu> <guimenuitem>Loan Repayment Calculator</guimenu item>
</menuchoice>.		</menuchoice>.
</para>		</para>
<screenshot id="loans_fcalc">		<figure>
<mediaobject>		<title>Loan Repayment Calculator</title>
<imageobject>		<screenshot id="loans_fcalc">
<imagedata fileref="figures/loans_fcalc.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_fcalc.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Loan Repayment Calculator</phrase>		<caption>
</textobject>		<para>The &app; <guilabel>Loan Repayment Calculator</guilabel>.
		</para>
<caption>		</caption>
<para>The &app; <guilabel>Loan Repayment Calculator</guilabel>.		</mediaobject>
</para>		</screenshot>
</caption>		</figure>
</mediaobject>
</screenshot>
<para>The <guilabel>Loan Repayment Calculator</guilabel> can be used to calc ulate any one of the		<para>The <guilabel>Loan Repayment Calculator</guilabel> can be used to calc ulate any one of the
parameters: <guilabel>Payment Periods</guilabel>, <guilabel>Interest Rate< /guilabel>,		parameters: <guilabel>Payment Periods</guilabel>, <guilabel>Interest Rate< /guilabel>,
<guilabel>Present Value</guilabel>, <guilabel>Periodic Payment</guilabel>, or <guilabel>Future		<guilabel>Present Value</guilabel>, <guilabel>Periodic Payment</guilabel>, or <guilabel>Future
Value</guilabel> given that the other 4 have been defined. You will also n eed to specify the		Value</guilabel> given that the other 4 have been defined. You will also n eed to specify the
compounding and payment methods.		compounding and payment methods.
</para>		</para>
<variablelist>		<variablelist>
<varlistentry>		<varlistentry>
skipping to change at line 478		skipping to change at line 476
<para>As an example, assume you have $60,000 in you Saving account, and you buy a $150,000 house. The		<para>As an example, assume you have $60,000 in you Saving account, and you buy a $150,000 house. The
mortgage is charging 6% APR, and has administrative fees (closing costs, e tc) of 3%. You		mortgage is charging 6% APR, and has administrative fees (closing costs, e tc) of 3%. You
decide to put $50,000 down, and thus will need to borrow $103,000, which w ill give you $100		decide to put $50,000 down, and thus will need to borrow $103,000, which w ill give you $100
after the closing costs are paid (3% of $100,000).		after the closing costs are paid (3% of $100,000).
</para>		</para>
<para>Your accounts before borrowing the money:		<para>Your accounts before borrowing the money:
</para>		</para>
		<figure>
		<title>Accounts Before Receiving Loan</title>
<screenshot id="loans_mortgage">		<screenshot id="loans_mortgage">
<mediaobject>		<mediaobject>
<imageobject>		<imageobject>
<imagedata fileref="figures/loans_mortgage1.png"		<imagedata fileref="figures/loans_mortgage1.png"
srccredit="Bengt Thuree" />		srccredit="Bengt Thuree" />
</imageobject>		</imageobject>
<textobject>
<phrase>Accounts Before Receiving Loan</phrase>
</textobject>
<caption>
<para>Accounts Before Receiving Loan
</para>
</caption>
</mediaobject>		</mediaobject>
</screenshot>		</screenshot>
		</figure>
<para>The purchase of the house is recorded with a split transaction in the <emphasis>Assets:Fixed		<para>The purchase of the house is recorded with a split transaction in the <emphasis>Assets:Fixed
Assets:House</emphasis> account, with $50,000 coming from the bank (i.e., your down payment),		Assets:House</emphasis> account, with $50,000 coming from the bank (i.e., your down payment),
and $100,000 coming from the Mortgage. You can place the $3,000 closing co sts in the same		and $100,000 coming from the Mortgage. You can place the $3,000 closing co sts in the same
split, and we increase the house loan to $103,000 to include the closing c osts as well.		split, and we increase the house loan to $103,000 to include the closing c osts as well.
</para>		</para>
<para><table>		<para><table>
<title>Buying a House Split Transaction</title>		<title>Buying a House Split Transaction</title>
skipping to change at line 576		skipping to change at line 568
<entry></entry>		<entry></entry>
</row>		</row>
</tbody>		</tbody>
</tgroup>		</tgroup>
</table>		</table>
</para>		</para>
<para>The split will look like this in the <emphasis>Assets:Fixed Assets:Hou se</emphasis> Account:		<para>The split will look like this in the <emphasis>Assets:Fixed Assets:Hou se</emphasis> Account:
</para>		</para>
<screenshot id="loans_mortgage2.png">		<figure>
<mediaobject>		<title>Mortgage Split Transaction</title>
<imageobject>		<screenshot id="loans_mortgage2.png">
<imagedata fileref="figures/loans_mortgage2.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_mortgage2.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Mortgage Split Transaction</phrase>		</mediaobject>
</textobject>		</screenshot>
		</figure>
<caption>
<para>Mortgage Split Transaction
</para>
</caption>
</mediaobject>
</screenshot>
<para>Which will give a Chart of Accounts like this:		<para>Which will give a Chart of Accounts like this:
</para>		</para>
<screenshot id="loans_mortgage3">		<figure>
<mediaobject>		<title>Mortgage Accounts</title>
<imageobject>		<screenshot id="loans_mortgage3">
<imagedata fileref="figures/loans_mortgage3.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_mortgage3.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Mortgage Accounts</phrase>		</mediaobject>
</textobject>		</screenshot>
		</figure>
<caption>
<para>Mortgage Account
</para>
</caption>
</mediaobject>
</screenshot>
</sect1>		</sect1>
<sect1 id="loans_CarLoan">		<sect1 id="loans_CarLoan">
<title>Automobile Loan (How-To)</title>		<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		<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 ra tes. The basic car		loan. The only difference is different accounts, and different interest ra tes. The basic car
loan account structure is as follows:<screen>-Asset		loan account structure is as follows:<screen>-Asset
-Current Assets		-Current Assets
-Saving		-Saving
skipping to change at line 709		skipping to change at line 689
Repayment Calculator</guilabel></link>. This tells you that the Monthly Payment should be		Repayment Calculator</guilabel></link>. This tells you that the Monthly Payment should be
$115.56.		$115.56.
</para>		</para>
<para>But you need to know how much of this is Interest and how much is Pr incipal to be able to do a		<para>But you need to know how much of this is Interest and how much is Pr incipal to be able to do a
proper bookkeeping. For this you need a more powerful tool, something li ke the		proper bookkeeping. For this you need a more powerful tool, something li ke the
<application>Calc</application> module in &app-aoo;/&app-lo;, and in par ticular the		<application>Calc</application> module in &app-aoo;/&app-lo;, and in par ticular the
<acronym>PMT</acronym> function.		<acronym>PMT</acronym> function.
</para>		</para>
<screenshot id="loans_OpenOfficePrivateLoanDetails">		<figure>
<mediaobject>		<title>Calculation Of Private Loan Details</title>
<imageobject>		<screenshot id="loans_OpenOfficePrivateLoanDetails">
<imagedata fileref="figures/loans_PrivateLoanCalculation.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_PrivateLoanCalculation.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Calculation of Private Loan details</phrase>		<caption id="loans_OpenOfficePrivateLoanDetails.caption">
</textobject>		Detailed view over the private loan to Peter
		</caption>
<caption id="loans_OpenOfficePrivateLoanDetails.caption">		</mediaobject>
Detailed view over the private loan to Peter		</screenshot>
</caption>		</figure>
</mediaobject>
</screenshot>
</sect2>		</sect2>
<sect2 id="loans_personalLoanToSomeOne_accounts">		<sect2 id="loans_personalLoanToSomeOne_accounts">
<title>Accounts for the loan</title>		<title>Accounts for the loan</title>
<para>Let&rsquo;s start with the following accounts. They all have the sam e currency, in this case USD.<example>		<para>Let&rsquo;s start with the following accounts. They all have the sam e currency, in this case USD.<example>
<title>Accounts for the loan to Peter</title>		<title>Accounts for the loan to Peter</title>
<itemizedlist>		<itemizedlist>
<listitem>		<listitem>
skipping to change at line 814		skipping to change at line 792
<entry>		<entry>
$2,000		$2,000
</entry>		</entry>
</row>		</row>
</tbody>		</tbody>
</tgroup>		</tgroup>
</table>		</table>
</para>		</para>
<screenshot id="loans_PrivateLoanInitial">		<figure>
<mediaobject>		<title>Chart of Accounts after lending money</title>
<imageobject>		<screenshot id="loans_PrivateLoanInitial">
<imagedata fileref="figures/loans_PrivateLoanInitial.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_PrivateLoanInitial.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Lended money</phrase>		</mediaobject>
</textobject>		</screenshot>
		</figure>
<caption>
<para>Chart of Accounts after lending money
</para>
</caption>
</mediaobject>
</screenshot>
</sect2>		</sect2>
<sect2 id="loans_personalLoanToSomeOne_FirstPayment">		<sect2 id="loans_personalLoanToSomeOne_FirstPayment">
<title>Receiving first payment</title>		<title>Receiving first payment</title>
<para>When the first payment ($115.56) is received, you will need to deter mine how much is for the		<para>When the first payment ($115.56) is received, you will need to deter mine how much is for the
principal loan, and how much is for the loan interest.		principal loan, and how much is for the loan interest.
</para>		</para>
<itemizedlist>		<itemizedlist>
skipping to change at line 870		skipping to change at line 842
<listitem>		<listitem>
<para>$115.56 - $8.33 = $107.23 Principal		<para>$115.56 - $8.33 = $107.23 Principal
</para>		</para>
</listitem>		</listitem>
</itemizedlist>		</itemizedlist>
<para>This can be translated to the following &app; entry		<para>This can be translated to the following &app; entry
</para>		</para>
<screenshot id="loans_PrivateLoanFirstPayment">		<!-- ToDo: unshrink -->
<mediaobject>		<figure>
<imageobject>		<title>First Payment</title>
<imagedata fileref="figures/loans_PrivateLoanFirstPayment.png"		<screenshot id="loans_PrivateLoanFirstPayment">
srccredit="Bengt Thuree" />		<mediaobject>
</imageobject>		<imageobject>
		<imagedata fileref="figures/loans_PrivateLoanFirstPayment.png"
<textobject>		srccredit="Bengt Thuree" />
<phrase>First payment</phrase>		</imageobject>
</textobject>		<caption>
		<para>Detailed view over first payment
<caption>		</para>
<para>Detailed view over first payment		</caption>
</para>		</mediaobject>
</caption>		</screenshot>
</mediaobject>		</figure>
</screenshot>
<para>The balance on Peter&rsquo;s loan is now $2,000 - $107.23 = $1,892.7 7.		<para>The balance on Peter&rsquo;s loan is now $2,000 - $107.23 = $1,892.7 7.
</para>		</para>
</sect2>		</sect2>
<sect2 id="loans_personalLoanToSomeOne_SecondPayment">		<sect2 id="loans_personalLoanToSomeOne_SecondPayment">
<title>Receiving second payment</title>		<title>Receiving second payment</title>
<para>When the second payment ($115.56) is received, you will again need t o determine how much is for the		<para>When the second payment ($115.56) is received, you will again need t o determine how much is for the
principal loan, and how much is for the loan interest.		principal loan, and how much is for the loan interest.
skipping to change at line 929		skipping to change at line 900
<listitem>		<listitem>
<para>$115.56 - $7.89 = $107.67 Principal		<para>$115.56 - $7.89 = $107.67 Principal
</para>		</para>
</listitem>		</listitem>
</itemizedlist>		</itemizedlist>
<para>This can be translated to the following &app; entry.		<para>This can be translated to the following &app; entry.
</para>		</para>
<screenshot id="loans_PrivateLoanSecondPayment">		<figure>
<mediaobject>		<title>Second payment</title>
<imageobject>		<screenshot id="loans_PrivateLoanSecondPayment">
<imagedata fileref="figures/loans_PrivateLoanSecondPayment.png"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_PrivateLoanSecondPayment.png"
		srccredit="Bengt Thuree" />
<textobject>		</imageobject>
<phrase>Second payment</phrase>		<caption>
</textobject>		<para>Detailed view over the second payment
		</para>
<caption>		</caption>
<para>Detailed view over the second payment		</mediaobject>
</para>		</screenshot>
</caption>		</figure>
</mediaobject>
</screenshot>
<para>The balance on Peter&rsquo;s loan is now $1,892.77 - $107.67 = $1,78 5.10.		<para>The balance on Peter&rsquo;s loan is now $1,892.77 - $107.67 = $1,78 5.10.
</para>		</para>
<para>The Chart of accounts looks now like this:		<para>The Chart of accounts looks now like this:
</para>		</para>
<screenshot id="loans_PrivateLoanSecondPaymentAccounts">		<!-- ToDo: unshrink -->
<mediaobject>		<figure>
<imageobject>		<title>Chart Of Accounts After Second payment</title>
<imagedata fileref="figures/loans_PrivateLoanSecondPaymentAccounts.p		<screenshot id="loans_PrivateLoanSecondPaymentAccounts">
ng"		<mediaobject>
srccredit="Bengt Thuree" />		<imageobject>
</imageobject>		<imagedata fileref="figures/loans_PrivateLoanSecondPaymentAccounts
		.png"
<textobject>		srccredit="Bengt Thuree" />
<phrase>Chart of Accounts after second payment</phrase>		</imageobject>
</textobject>		</mediaobject>
		</screenshot>
<caption>		</figure>
Chart of Accounts after second payment
</caption>
</mediaobject>
</screenshot>
<para>As you can see, the interest varies for every month, as well as the principal amount. So for every		<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 va rious split entries.		payment you receive you need to calculate the proper amounts for your va rious split entries.
</para>		</para>
<para>The interest amount will be less and less for every payment (since i t is calculated on a smaller		<para>The interest amount will be less and less for every payment (since i t is calculated on a smaller
loan amount all the time), until the last payment where it is more or le ss 0. Please review		loan amount all the time), until the last payment where it is more or le ss 0. Please review
<link linkend="loans_OpenOfficePrivateLoanDetails" endterm="loans_OpenOf ficePrivateLoanDetails.caption" />		<xref linkend="loans_OpenOfficePrivateLoanDetails" endterm="loans_OpenOf ficePrivateLoanDetails.caption" />
for more details.		for more details.
</para>		</para>
</sect2>		</sect2>
</sect1>		</sect1>
<sect1 id="loans_Reconciling">		<sect1 id="loans_Reconciling">
<title>Reconciling with the Loan Statements (How-To)</title>		<title>Reconciling with the Loan Statements (How-To)</title>
<para>Reconciling a loan statement is no different from reconciling a bank o r credit card statement.		<para>Reconciling a loan statement is not different from reconciling a bank or credit card statement.
</para>		</para>
<para>During the period you should have recorded all the various loan relate d transactions, and every one		<para>During the period you should have recorded all the various loan relate d transactions, and every one
of them are touching the <guilabel>Liability:Loans:<replaceable>Loan</repl aceable></guilabel>		of them are touching the <guilabel>Liability:Loans:<replaceable>Loan</repl aceable></guilabel>
account. For instance, paying off a bit of the loan decreases your <emphas is>Bank		account. For instance, paying off a bit of the loan decreases your <emphas is>Bank
Account</emphasis> and <emphasis>Loan account</emphasis>, and increases th e <emphasis>Loan		Account</emphasis> and <emphasis>Loan account</emphasis>, and increases th e <emphasis>Loan
Interest</emphasis> as well as perhaps <emphasis>Loan administration fee</ emphasis>.		Interest</emphasis> as well as perhaps <emphasis>Loan administration fee</ emphasis>.
</para>		</para>
<para>With the loan statement in your hands, open the Loan account, start th e reconcile assistant, and		<para>With the loan statement in your hands, open the Loan account, start th e reconcile assistant, and
End of changes. 13 change blocks.
146 lines changed or deleted		111 lines changed or added

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