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Budget issue with Investment Activities & Debt RRS feed

  • Question

  • Hi Anybody!  I'm not sure if there's an idea out there for my dilemmas, but I figured I'd throw them out there.  I use the 2006 Money Deluxe - I haven't upgraded since it works with Ultrasoft Money on the Palm OS and I'm just comfortable with it!  I have two little questions, one of which I have it solved in a weird way, the second of which has stumped me.

    1)  I hold a mortgage on my old house, receiving payments + escrow.  My transaction is to receive the loan principal + loan interest + transfer: escrow.  This should be considered income if anything, but it shows up as a debt.  I hate this because my real debts aren't impacted by this (Line of Credit & Mortgage), and I want to track those separately.  My fix was to set up a dummy account, and make $0 transactions where I decrease Loan (offsetting the mortgage I received), and increase transfer: escrow & loan income.  I doubt there's a way to set money to make the payment received income, but I figured that I'd ask.

    2)  Bigger annoyance with no fix.  Certain investments cause a double booking in my budget.  One, dividend payments show up as dividends income (correct) but also as transfer into budget accounts (as it's shifted to the related cash account.)  Only one should show up on the budget.  Second, we are cashing in stock options, and this causes the same double booking in income and transfer into budget accounts.  This will only be a couple months a year we do it, but it's still an annoyance.

    Any thoughts?

    Thanks,

    Joe

    Friday, September 14, 2012 9:33 PM

All replies

  • 1.When you create a mortgage account, there will be a radio button where you select whether you are borrowing or lending. I suspect you did not select lending during the setup.

    You could try deleting the current mortgage and setting that up again. Keep an extra backup or copy of your Money file in case you want to undo something.

    2. I don't use budgeting. What you describe sounds like a bug to me. However I wonder if it would improve things if you changed the "Include this account in the budget planner" setting in the Investment Account settings. Another workaround might be to un-tick "Track cash transactions" getting rid of the Cash Transactions account. I would not find that acceptable myself.

    Sunday, September 16, 2012 2:36 PM
    Moderator
  • Thanks for the reply Cal.

    1)  Unfortunately, I did select lending (tried this multiple times), and it appears that it doesn't expect people to loan money in this program.  I upgraded, but it gives the same error.  If anybody tries this process in their own file and gets something different, let me know.

    2)  Yeah, another bug in the code for this one.  Unfortunately, if you un-tick that cash account, then you don't get either transaction - not the categorized account or the not included one.  I upgraded, and it was worse on this, as ALL transactions out of accounts were included, such as transfers or payments to credit cards.  I think you're suggestion of not tracking that account is going to be best.  I'd rather not have it in than having it counted twice... today at least!

    Monday, September 17, 2012 3:34 AM
  • For [ loan principal + loan interest + transfer: escrow.] The principal should be neither income nor expense. The interest should be income. The escrow.... hmmm... I guess you are transferring that to liablility account called escrow? I don't know how I would expect that to work. In a way it should be income that will be offset with expenses to zero out in the long term.

    In a mortgage account with no interest or escrow (only principal), I got no entries in the Monthly income and expenses report. Is that the report you are looking at?

    Monday, September 17, 2012 3:53 AM
    Moderator
  • Ok, that's interesting.  The budget planner definitely has some bugs (or user error!) that is in line with what I mentioned at first.  When I was mentioning the report, it was actually the Monthly Budget report (which you wouldn't use).  But you're right, the Monthly income & expenses report runs EXACTLY how I would want the budget report to look.  The mortgage interest I receive shows up as income, my home mortgage going out is an expense, and principal shows up as transfer.  Stock options also show up as transfers (and only once).  With all accounts selected, Budget gave me an August total income of $4564.19; Income & Expenses gave $3510.27.   All because budget duplicated the stock options & showed the incoming mortgage payment as an expense.  The income & expense report will be my default from now on, with budget just for use on a line item basis (which categories show over-budget, which under) and disregard the report.

    Oh, as for escrow, yes, I have it set up as a liability account.  The money paid gets transferred in, & when I pay the property tax & insurance, it transfers out.  I do run a category report for just the Escrow Account, and it shows all transactions just within that account.  I originally showed the money coming in as escrow income and outgoing as escrow expense, but didn't like them being apart.  Then I changed both so money in was negative escrow expense, outgoing was positive escrow expense.  Then finally realized I didn't want to track that at all with household items! 

    Thanks for the responses, I now have some working solutions with a bit more understanding!

    Monday, September 17, 2012 5:49 PM