[office/kmymoney/Handbook-5.2] /: budgets and loand
Jack Ostroff
null at kde.org
Sun Nov 19 18:16:57 GMT 2023
Git commit cca51a7f15f8cf014488262b9070df08ce8b70fc by Jack Ostroff.
Committed on 19/11/2023 at 19:16.
Pushed by ostroffjh into branch 'Handbook-5.2'.
budgets and loand
M +14 -1 README-CONTRIBUTORS
M +215 -212 doc/details-budgets.docbook
M +132 -108 doc/details-loans.docbook
https://invent.kde.org/office/kmymoney/-/commit/cca51a7f15f8cf014488262b9070df08ce8b70fc
diff --git a/README-CONTRIBUTORS b/README-CONTRIBUTORS
index 43e4fe96d..e8ff7d2fe 100644
--- a/README-CONTRIBUTORS
+++ b/README-CONTRIBUTORS
@@ -80,10 +80,13 @@ This is in the order pulled in from index.docbook, with brief note on state of u
<!ENTITY details-loans SYSTEM "details-loans.docbook">
+
<!ENTITY details-budgets SYSTEM "details-budgets.docbook">
+ prelim update complete, need to add screenshots
<!ENTITY details-forecast SYSTEM "details-forecast.docbook">
-
+ prelim update begun
+
<!ENTITY details-settings SYSTEM "details-settings.docbook">
<!ENTITY details-search SYSTEM "details-search.docbook">
@@ -312,5 +315,15 @@ elsewhere.
- In report configuration dialog, if the report has not been run (select configure from
the reports list) and you close, do not actually run the report.
+- In the Budgets View, the list of categories on the right does not allow resizing
+ columns. In addition, with all columns displayed, the Name column is so narrow you
+ do not even see the first letters of the name, only the income or expense icon.
+
+- In the Budgets View, should the list on the right be called the Accounts List or
+ the Categories List? The doc does mention that categories are accounts, but given
+ this list is restricted to categories only, ....?
+- In the Budgets View, the three sections on the right cannot be resized, although it is
+ possible to adjust the division between the right and left sections.
+-
\ No newline at end of file
diff --git a/doc/details-budgets.docbook b/doc/details-budgets.docbook
index 9c4d96ac9..7bce5bcbd 100644
--- a/doc/details-budgets.docbook
+++ b/doc/details-budgets.docbook
@@ -5,14 +5,13 @@
<author> &Colin.Wright; &Colin.Wright.mail; </author>
<author> &Jack.H.Ostroff; &Jack.H.Ostroff.mail; </author>
</authorgroup>
- <date>2011-06-29</date>
- <releaseinfo>4.6</releaseinfo>
+ <date>2023-11-20</date>
+ <releaseinfo>5.2</releaseinfo>
</chapterinfo>
<title>Budgets</title>
-<sect1 id="details.budgets.define">
-<title>What is a budget?</title>
+<sect1 id="details.budgets.define"><title>What is a budget?</title>
<para>
A budget is a categorized list of expected income and expenses for a period.
@@ -40,47 +39,46 @@
<varlistentry>
<term>Individual</term>
- <listitem><para>Specify separate values for each month.</para>
+ <listitem>
+ <para>Specify separate values for each month.</para>
<para>This is used for income and expenses spread irregularly through the
- year.</para></listitem>
+ year.</para>
+ </listitem>
</varlistentry>
</variablelist>
<para>
- &kmymoney; provides a number of reports which compare actual income
- and expenses against the entered Budgets. These are described in
- more detail in
- <link linkend="budget.details.reports">another section</link>.
+ &kmymoney; provides a number of reports which compare actual income and expenses
+ against the entered Budgets. These are described in more detail in <link
+ linkend="budget.details.reports">another section</link>.
</para>
</sect1>
-<sect1 id="details.budgets.create" >
-<title>Your budgets</title>
+<sect1 id="details.budgets.create" ><title>Your budgets</title>
<para>
- You can access your budgets by clicking the appropriate icon in the navigation
- pane at the left hand side of your &kmymoney; window.
+ You can access your budgets in the <guilabel>Budgets View</guilabel>, which you can
+ display by clicking the appropriate icon in the navigation pane at the left hand
+ side of your &kmymoney; window.
</para>
<para>
- There are two major sections to the budget window. These are
- described in more detail below. On the left, the main section
- displays the list of budgets you have created. Above that are
- buttons for creating, renaming, and deleting budgets. On the right,
- there are three sections. At the top is the Accounts List. At the
- bottom is a display of the amounts assigned to the budget for the
- category selected in the Accounts List above. Between those two
- areas are some additional controls for managing the budget.
+ There are two major sections to the Budgets View. These are described in more
+ detail below. On the left, the main section displays the list of budgets you have
+ created. Above that are buttons for creating, renaming, and deleting budgets. On
+ the right, there are three sections. At the top is the Accounts List. <!-- FIXME:
+ should this really be Categoreis List? --> At the bottom is a display of the
+ amounts assigned to the budget for the category selected in the Accounts List
+ above. Between those two areas are some additional controls for managing the
+ budget.
</para>
-<sect2>
-<title>Viewing, creating, renaming, and deleting budgets</title>
+<sect2><title>Viewing, creating, renaming, and deleting budgets</title>
<para>
- This section of the Budgets window displays the list of Budgets
- contained in the current &kmymoney; file. If no Budget has yet been
- created the list will be empty. The list of Budgets has two
- columns:
+ The left section of the Budgets View displays the list of Budgets contained in the
+ current &kmymoney; file. If no Budget has yet been created the list will be empty.
+ The list of Budgets has two columns:
</para>
<variablelist>
@@ -94,19 +92,21 @@
<varlistentry>
<term>Year</term>
<listitem>
- <para>Fiscal year of the Budget. Note that the starting month
- and day of the fiscal year can be specified in
- the <link linkend="details.settings.general.global">Configure
- &kmymoney; dialog.</link></para>
+ <para>
+ Fiscal year of the Budget. Note that the starting month and day of the
+ fiscal year can be specified in the <link
+ linkend="details.settings.general.global">Configure &kmymoney; dialog.</link>
+ To change the fiscal year of a Budget, double click on the year.
+ </para>
</listitem>
</varlistentry>
</variablelist>
<para>
- Values from the selected Budget are displayed to the right. To select a
- different Budget you can click on the Budget in the list. Alternatively, when
+ Values from the selected Budget are displayed to the right. To select a different
+ Budget you can click on the Budget in the list on the left. Alternatively, when
the list has focus, you can select a different Budget using the &Up; and &Down;
- keys. If you have made changes to a Budget and then select a different budget
+ keys. If you have made changes to a Budget and then select a different budget,
&kmymoney; will ask you whether you want to save or discard the changes.
</para>
@@ -119,9 +119,8 @@
<term>New</term>
<listitem>
<para>
- Create a new, empty budget. The default name of a new budget
- is "Budget <year>" where <year> is the current
- fiscal year.
+ Create a new, empty budget. The default name of a new budget is "Budget
+ <year>" where <year> is the current fiscal year.
</para>
</listitem>
</varlistentry>
@@ -131,8 +130,10 @@
<listitem>
<para>Edit the name of the selected Budget.</para>
- <para>You can also edit the name of a Budget by double-clicking
- on the name of a Budget in the list.</para>
+ <para>
+ You can also edit the name of a Budget by double-clicking on the name of a
+ Budget in the list.
+ </para>
</listitem>
</varlistentry>
@@ -142,29 +143,11 @@
<para>Delete the selected Budget.</para>
</listitem>
</varlistentry>
-
-<!-- buttons moved in the UI - they are now described below. Will remove
- from here after this chapter has been reviewed.
- <varlistentry>
- <term>Revert</term>
- <listitem>
- <para>Reverts the selected Budget to its last stored state.</para>
- </listitem>
- </varlistentry>
-
- <varlistentry>
- <term>Save</term>
- <listitem>
- <para>Accepts any unsaved changes to the selected Budget and
- stores them.</para>
- </listitem>
- </varlistentry>
- -->
</variablelist>
<para>
- Additional options are available on a menu accessed by right-clicking on a
- Budget.
+ Additional options are available on the <guilabel>Budget Options</guilabel> context
+ menu accessed by right-clicking on a Budget.
</para>
<variablelist>
@@ -182,14 +165,6 @@
</listitem>
</varlistentry>
- <varlistentry>
- <term>Change budget year</term>
- <listitem>
- <para>Displays a window with a list of years to select a
- different fiscal year for the budget.</para>
- </listitem>
- </varlistentry>
-
<varlistentry>
<term>Delete budget</term>
<listitem>
@@ -200,19 +175,20 @@
<varlistentry>
<term>Copy budget</term>
<listitem>
- <para>Creates a copy of the selected Budget. The new Budget has the name
- "Copy of <budget>", where <budget> is the name of the copied
- Budget.</para>
+ <para>
+ Creates a copy of the selected Budget. The new Budget has the name "Copy of
+ <budget>", where <budget> is the name of the copied Budget.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Budget based on forecast</term>
<listitem>
- <para>Fills in budget amounts based on data from &kmymoney;'s
- Forecast values. See the section on
- <link linkend="details.forecast.define">Forecasts</link> for
- more information.
+ <para>
+ Fills in budget amounts based on data from &kmymoney;'s Forecast values. See
+ the section on <link linkend="details.forecast.define">Forecasts</link> for
+ more information.
</para>
</listitem>
</varlistentry>
@@ -223,16 +199,25 @@
<title>Account List</title>
<para>
- The Accounts List displays the list of Income and Expense Categories.
- (Remember, within &kmymoney;, categories are treated as a special type of
- account.) As in other places in &kmymoney;, the list is organized in a tree
- structure. The list can be expanded or collapsed to show or hide Subcategories
- within a Category. The Accounts List has a number of columns:
+ The Accounts List displays the list of Income and Expense Categories. (Remember,
+ within &kmymoney;, categories are treated as a special type of account.) As in
+ other places in &kmymoney;, the list is organized in a tree structure. The list can
+ be expanded or collapsed to show or hide Subcategories within a Category. The
+ Accounts List has a number of columns:
+</para>
+
+<para>
+ Aside from the Name column, all other columns may be shown or hidden by
+ right-clicking on any column header, and checking or unchecking the checkbox next
+ to the column name. For more details about the meaning of each column, see the
+ <link linkend="details.categories.view">Categories Veiw</link> section. Only the
+ columns specifically relevant to Budgets are listed below, but all Category columns
+ may be displayed.
</para>
<variablelist>
<varlistentry>
- <term>Account</term>
+ <term>Name</term>
<listitem>
<para>Account (Category) name</para>
</listitem>
@@ -245,167 +230,163 @@
</listitem>
</varlistentry>
-<!-- these seem to have been removed from the display. Remove from here
- once this is confirmed by the programmers.
- <varlistentry>
- <term>Tax</term>
- <listitem>
- <para>Checked if a Category included in Tax Reports</para>
- </listitem>
- </varlistentry>
-
- <varlistentry>
- <term>VAT</term>
- <listitem>
- <para>Checked if a Category marked as a VAT Category</para>
- </listitem>
- </varlistentry>
--->
-
<varlistentry>
- <term>Total Balance</term>
+ <term>Balance</term>
<listitem>
- <para>Current balance of Account. This will be blank for Categories, unless the Category
- is defined in a foreign currency. In this case, Total Balance will show the value for the
- Category in its defined currency.</para>
+ <para>
+ Current balance of Account. This will be blank for Categories, unless the
+ Category is defined in a foreign currency. In this case, Balance will show
+ the value for the Category in its defined currency.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Total Value</term>
<listitem>
- <para>Total yearly value in the Budget. If a Category has Subcategories
- and the Category's list of Subcategories is collapsed the value displayed
- is the sum of the values for the Category and all of its Subcategories.
- If a Category is defined in a foreign currency, the Total Value will show
- the value in the base currency.</para>
+ <para>
+ Total yearly value in the Budget. If a Category has Subcategories and the
+ Category's list of Subcategories is collapsed the value displayed is the sum
+ of the values for the Category and all of its Subcategories. If a Category
+ is defined in a foreign currency, the Total Value will show the value in the
+ base currency.
+ </para>
</listitem>
</varlistentry>
</variablelist>
-<!-- It would be nice to include the actual button icons here to confirm
+<!-- FIXME: It would be nice to include the actual button icons here to confirm
which buttons are referred to. -->
<para>
- Below the Accounts List are several controls. The <guibutton>Update</guibutton>
- and <guibutton>Revert</guibutton> buttons are described further below. The collapse
- and expand buttons collapse or expand the entire Accounts List.
+ Below the Accounts List are several controls. The <guibutton>Update</guibutton> and
+ <guibutton>Revert</guibutton> buttons are described further below. The
+ <guibutton>collapse</guibutton> and <guibutton>expand</guibutton> buttons collapse
+ or expand the entire Accounts List.
</para>
<para>
- The Accounts List can be filtered in two ways. Checking the <guilabel>Hide
- unused categories</guilabel> checkbox hides any Categories for which no value
- has been assigned to the Category or any of its Subcategories. To
- the right of this, is an unlabelled text box. Only categories which
- include whatever is typed in this box are listed, but their parent
- categories are also listed.
+ The Accounts List can be filtered in two ways. Checking the <guilabel>Hide unused
+ budget categories</guilabel> checkbox hides any Categories for which no value has
+ been assigned to the Category or any of its Subcategories in the selected budget.
+ To the right of this, is an unlabelled text box. Only categories which include
+ whatever is typed in this box are listed, but their parent categories are also
+ listed.
</para>
<para>
- Note that changing either the <guilabel>Hide unused budget categories</guilabel>
- or the filter value is likely to change the list of Categories display.
- You may need to re-expand the list to see all the Categories that
- should be displayed with the current settings.
+ Note that changing either the <guilabel>Hide unused budget categories</guilabel> or
+ the filter value is likely to change the list of Categories displayed. You may
+ need to re-expand the list to see all the Categories that should be displayed with
+ the current settings.
</para>
-
</sect2>
-<sect2>
-<title>Assignments</title>
+<sect2><title>Assignments</title>
<para>
- The Assignments area shows the values for the Category selected in
- the Accounts List.
+ The Assignments area shows the values for the Category selected in the Accounts
+ List.
</para>
<variablelist>
<varlistentry>
<term>Account</term>
<listitem>
- <para>Displays the name of the selected Category. If the
- Category is a Subcategory, its full name is displayed in the
- Category:Subcategory format.</para>
+ <para>
+ The name of the selected Category. If the Category is a Subcategory, its
+ full name is displayed in the Category:Subcategory format.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Total</term>
<listitem>
- <para>Displays the total yearly value assigned to the Category.</para>
+ <para>The total yearly value assigned to the Category.</para>
</listitem>
</varlistentry>
<varlistentry>
<term>Include subaccounts</term>
<listitem>
- <para>If this is checked, then Reports show actual income or
- expenses in Subcategories belonging to the Category against
- the Category instead of the Subcategory.</para>
-
- <para>If a Subcategory has a value defined in the Budget, then
- the income and expenses are shown against the
- Subcategory.</para>
-
- <para>If the Category selected in the Accounts List has its
- Subcategories collapsed, although its Total Value will show the
- sum of the Total Values for all its Subcategories, the amounts
- in the Assignments area may still show 0, unless this box has
- been checked or an amount has explicitly been assigned to the
- Category.</para>
-
- <para>In general, for you will either check this box and assign
- values to the Category and not to any of its Subcategories, or
- not check the box, and assign values to the Subcategories but
- not the Category. If any Subcategories have assigned amounts
- when this box is checked, then those amounts are rolled up to
- the Category.</para>
+ <para>
+ If this is checked, then Reports show actual income or expenses in
+ Subcategories belonging to the Category against the Category instead of the
+ Subcategory.
+ </para>
+
+ <para>
+ If a Subcategory has a value defined in the Budget, then the income and
+ expenses are shown against the Subcategory.
+ </para>
+
+ <para>
+ If the Category selected in the Accounts List has its Subcategories
+ collapsed, although its Total Value will show the sum of the Total Values for
+ all its Subcategories, the amounts in the Assignments area may still show 0,
+ unless this box has been checked or an amount has explicitly been assigned to
+ the Category.
+ </para>
+
+ <para>
+ In general, you will either check this box and assign values to the Category
+ and not to any of its Subcategories, or not check the box, and assign values
+ to the Subcategories but not the Category. If any Subcategories have
+ assigned amounts when this box is checked, then those amounts are rolled up
+ to the Category.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Clear</term>
<listitem>
- <para>The <guibutton>Clear</guibutton> button resets the budgeted
- category value or values to zero.</para>
+ <para>
+ Clicking this button resets the budgeted category value or values to zero.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Period</term>
<listitem>
- <para>The <guilabel>Period</guilabel> radio buttons allow you to
- select the period for which the value applies</para>
+ <para>
+ This radio buttons allow you to select the period for which the value applies
+ </para>
<variablelist>
<varlistentry>
<term>Monthly</term>
<listitem>
- <para>A single value is entered, specifying the amount per
- month. This is the default setting.</para>
+ <para>
+ A single value is entered, specifying the amount per month. This is the
+ default setting.
+ </para>
</listitem>
</varlistentry>
<varlistentry>
<term>Yearly</term>
<listitem>
- <para>A single value is entered, specifying the amount per
- year.</para>
+ <para>A single value is entered, specifying the amount per year.</para>
</listitem>
</varlistentry>
<varlistentry>
<term>Individual</term>
<listitem>
- <para>Values are specified for each Calendar month. This is used
- where expense or income is spread irregularly through the
- year.</para>
+ <para>
+ Values are specified for each Calendar month. This is used where
+ expense or income is spread irregularly through the year.
+ </para>
</listitem>
</varlistentry>
</variablelist>
<para>
- If a value is or values are already specified and the Period is changed
- &kmymoney; will ask whether to use the current total yearly value to
- assign the new values.
+ If a value is or values are already specified and the Period is changed,
+ &kmymoney; will ask whether to use the current total yearly value to assign
+ the new values.
</para>
</listitem>
</varlistentry>
@@ -415,30 +396,32 @@
<sect2>
<title>Update and Revert</title>
+<!-- FIXME: confirm there reslly is a Save button. I don't see one, but it might not
+ appear until you actually have a budget and hit Update. -->
<para>
For performance reasons, changes made to a Budget are not saved immediately.
- Instead, they must first be stored using the <guibutton>Update</guibutton>
- button and then permanently saved using the <guibutton>Save</guibutton> button.
+ Instead, they must first be stored using the <guibutton>Update</guibutton> button
+ and then permanently saved using the <guibutton>Save</guibutton> button.
</para>
<para>
- When a Budget's values are first modified, the <guibutton>Update</guibutton>
- and <guibutton>Revert</guibutton> buttons are enabled. Multiple changes can be
- made to the Budget. Pressing <guibutton>Update</guibutton> will store the changes
- and disable these buttons.
+ When a Budget's values are first modified, the <guibutton>Update</guibutton> and
+ <guibutton>Revert</guibutton> buttons are enabled. Multiple changes can be made to
+ the Budget. Pressing <guibutton>Update</guibutton> will store the changes and
+ disable these buttons.
</para>
<para>
The <guibutton>Save</guibutton> button only saves changes that have been stored
- using the <guibutton>Update</guibutton> button. Thus, if you have modified a Budget
- but not yet stored the changes <guibutton>Save</guibutton> button will not affect
- the modified Budget and the <guibutton>Update</guibutton> and <guibutton>Revert</guibutton>
- buttons remain enabled.
+ using the <guibutton>Update</guibutton> button. Thus, if you have modified a
+ Budget but not yet stored the changes <guibutton>Save</guibutton> button will not
+ affect the modified Budget and the <guibutton>Update</guibutton> and
+ <guibutton>Revert</guibutton> buttons remain enabled.
</para>
<para>
- Revert undoes any changes made to a Budget since the last Update and disables
- the <guibutton>Update</guibutton> and <guibutton>Revert</guibutton> buttons.
+ Revert undoes any changes made to a Budget since the last Update and disables the
+ <guibutton>Update</guibutton> and <guibutton>Revert</guibutton> buttons.
</para>
<para>
@@ -453,7 +436,7 @@
<para>
&kmymoney; provides a number of reports to compare actual income and expenses
- against a Budget. These are listed in Reports under "Budgeting". There are two
+ against a Budget. These are listed in Reports under "Budgeting". There are two
types of Budget Reports:
</para>
@@ -464,52 +447,72 @@
<variablelist>
<varlistentry>
<term>Monthly Budget</term>
- <listitem><para>Displays the monthly values from a Budget.</para>
+ <listitem>
+ <para>Displays the monthly values from a Budget.</para>
</listitem></varlistentry>
<varlistentry>
<term>Yearly Budget</term>
- <listitem><para>Displays the monthly values from a Budget,
- with yearly total.</para>
- </listitem></varlistentry>
+ <listitem>
+ <para>
+ Displays the monthly values from a Budget, with yearly total.
+ </para>
+ </listitem>
+ </varlistentry>
</variablelist>
</listitem>
</varlistentry>
<varlistentry>
<term>Budget vs. Actual</term>
- <listitem><para>These reports compare values from a Budget to
- actual income and expenses. In each budget report you can find
- the columns Budget, Actual, and Difference. Each report differs
- in the period that is shown.</para>
+ <listitem>
+ <para>
+ These reports compare values from a Budget to actual income and expenses. In
+ each budget report you can find the columns Budget, Actual, and Difference.
+ Each report differs in the period that is shown.
+ </para>
<variablelist>
- <varlistentry>
- <term>Budget vs. Actual This Year</term>
- <listitem><para>From the beginning of the year until today</para>
- </listitem></varlistentry>
- <varlistentry>
- <term>Budget vs. Actual This Year (YTM)</term>
- <listitem><para>From the beginning of the year until the last
- day of the previous month</para>
- </listitem></varlistentry>
- <varlistentry>
- <term>Monthly Budgeted vs. Actual</term>
- <listitem><para>From the beginning of the year until the last
- day of the current month</para>
- </listitem></varlistentry>
- <varlistentry>
- <term>Yearly Budgeted vs. Actual</term>
- <listitem><para>From January 1st until December 31st</para>
- </listitem></varlistentry>
- <varlistentry>
- <term>Yearly Budgeted vs. Actual (Graph)</term>
- <listitem><para>Same as the previous report but it shows the
- graph by default</para>
- </listitem></varlistentry>
+ <varlistentry>
+ <term>Budget vs. Actual This Year</term>
+ <listitem>
+ <para>From the beginning of the year until today</para>
+ </listitem>
+ </varlistentry>
+ <varlistentry>
+ <term>Budget vs. Actual This Year (YTM)</term>
+ <listitem>
+ <para>
+ From the beginning of the year until the last day of the previous month
+ </para>
+ </listitem>
+ </varlistentry>
+ <varlistentry>
+ <term>Monthly Budgeted vs. Actual</term>
+ <listitem>
+ <para>
+ From the beginning of the year until the last day of the current month
+ </para>
+ </listitem>
+ </varlistentry>
+ <varlistentry>
+ <term>Yearly Budgeted vs. Actual</term>
+ <listitem>
+ <para>From January 1st until December 31st</para>
+ </listitem>
+ </varlistentry>
+ <varlistentry>
+ <term>Yearly Budgeted vs. Actual (Graph)</term>
+ <listitem>
+ <para>
+ Same as the previous report but it shows the graph by default
+ </para>
+ </listitem>
+ </varlistentry>
</variablelist>
- <para>These reports provide a base from which custom reports can
- be created by changing the date range and Budget, among other
- options. </para>
+ <para>
+ These reports provide a base from which custom reports can be created by
+ changing the date range and Budget, among other options.
+ </para>
</listitem>
</varlistentry>
</variablelist>
diff --git a/doc/details-loans.docbook b/doc/details-loans.docbook
index 561e0e67d..3710e4f88 100644
--- a/doc/details-loans.docbook
+++ b/doc/details-loans.docbook
@@ -2,178 +2,202 @@
<chapter id="details.loans">
<chapterinfo>
<authorgroup>
- <author> &Darin.Strait; &Darin.Strait.mail; </author>
+ <author> &Darin.Strait; &Darin.Strait.mail; </author>
+ <author> &Jack.H.Ostroff; &Jack.H.Ostroff.mail; </author>
</authorgroup>
- <date>2010-07-25</date>
- <releaseinfo>4.5</releaseinfo>
+ <date>2023-11-20</date>
+ <releaseinfo>5.2</releaseinfo>
</chapterinfo>
<title>Loans</title>
-<sect1 id="details.loans.general">
-<title>Understanding Loans</title>
+<sect1 id="details.loans.general"><title>Understanding Loans</title>
+
+<note>
+ <para>
+ I am looking for user feedback on whether to expand this section to discuss the
+ variation of principal and interest payments to attain a fixed recurring payment.
+ It is mentioned in the section on actually creating a loan in &kmymoney; but it
+ seems it should be mentioned earlier.
+ </para>
+</note>
<para>
- This section provides an overview of how &kmymoney; handles loans. Loan
- regulations and customs vary from locality to locality. For detailed
- explanations of loans, as well as information on local regulations and
- customs, please see other resources.
+ This section describes how &kmymoney; handles loans. Loan regulations and customs
+ vary from locality to locality. For detailed explanations of loans, as well as
+ information on local regulations and customs, please see other resources.
</para>
<para>
A loan is an agreement under which a borrower receives money from a lender and
- agrees to repay the money at some future date. &kmymoney; allows you to track
- loans by which you, as borrower, borrow money from or, as lender, lend money
- to someone else. Most individuals borrow more than they lend, so you will
- generally be the borrower and a finance company will generally be the
- lender. If you lend money to a family member or a friend, you can use
- &kmymoney; to keep track of this loan as well.
+ agrees to repay the money at some future date. &kmymoney; allows you to track
+ loans by which you, as borrower, receive money from or, as lender, give money to
+ someone else. Most individuals borrow more than they lend, so you will generally
+ be the borrower and a finance company will generally be the lender. If you lend
+ money to a family member or a friend, you can use &kmymoney; to keep track of this
+ loan as well.
</para>
<para>
- This guide will assume that you are borrowing from some sort of finance
- company, but the topics discussed here apply equally well to loans that you
- might make to a person. The main difference between borrowing and lending
- money is that an expense category is used to keep track of interest when
- borrowing money and an income category is used to keep track of interest when
- lending money.
+ This guide will assume that you are borrowing from some sort of finance company,
+ but the topics discussed here apply equally well to loans that you might make to a
+ person. The main difference between borrowing and lending money is that an expense
+ category is used to keep track of interest when borrowing money and an income
+ category is used to keep track of interest when lending money.
</para>
-<formalpara><title>Loan Principal</title>
+<sect2><title>Some relevant terms</title>
+<formalpara><title>Principal</title>
<para>
- The amount that is lent out is called the <quote>loan amount</quote> or
- <quote>principal</quote>.
+ The amount that is borrowed is called the <quote>principal</quote> or <quote>loan
+ amount</quote>.
</para>
</formalpara>
<formalpara><title>Term</title>
<para>
- The period of a loan is called its <quote>term</quote> of the loan. At the end
- of the term, the entirety of the principal will have been returned to the
- borrower. Terms are generally expressed in weeks, months, or years. A term can
- also be expressed by the number of payments. For example, a one year loan with
- weekly repayments could be described as a one year loan or a loan with 52
- repayments.
+ The period or duration of a loan is called the <quote>term</quote> of the loan. At
+ the end of the term, the entirety of the principal will have been returned to the
+ lender. Terms are generally expressed in weeks, months, or years. A term can also
+ be expressed by the number of payments. For example, a one year loan with weekly
+ repayments could be described as a one year loan or a loan with 52 repayments.
</para>
</formalpara>
<formalpara><title>Repayments</title>
<para>
- The repayment of the principal to the lender is generally not done as a lump
- sum. Instead, a series of repayments are made, each representing a portion of
- the principal. Such repayments are sometimes known as <quote>amortization
- payments</quote> and in &kmymoney; <quote>Amortization</quote> is defined as
- the act of paying off a loan in installments.
+ The repayment of the principal to the lender is generally not done as a lump sum.
+ Instead, a series of repayments are made, each representing a portion of the
+ principal. Such repayments are sometimes known as <quote>amortization
+ payments</quote> and in &kmymoney; <quote>Amortization</quote> is defined as the
+ act of paying off a loan in installments.
</para>
</formalpara>
<formalpara><title>Payment Frequency</title>
<para>
- The frequency of installments is referred to as <quote>Payment
- Frequency</quote> in &kmymoney;. Examples of period might be weekly,
- bi-weekly, monthly, quarterly, or yearly. In the US, periodic payments are
- most commonly made every month, therefore the loan's period is one month.
+ The frequency of installments is referred to as <quote>Payment Frequency</quote>.
+ Examples of this might be weekly, bi-weekly, monthly, quarterly, or yearly. This
+ is also sometimes referred to as the payment period. In the US, periodic payments
+ are most commonly made every month, therefore the loan's period is one month.
</para>
</formalpara>
<formalpara><title>Interest Rate</title>
<para>
- For the privilege of being able to use the money, the borrower will pay the
- lender a fee called the <quote>interest</quote>, normally expressed as a
- percentage of the amount of the principal over a defined period. Interest
- rates can be fixed, where the interest rate does not change over the lifetime
- of the loan, or variable, where the interest rate can change over
- time. Typically, interest payments are included with each periodic repayment.
+ For the privilege of being able to use the money, the borrower will pay the lender
+ a fee called the <quote>interest</quote>, normally expressed as a percentage of the
+ amount of the principal over a defined period. Interest rates can be fixed, where
+ the interest rate does not change over the lifetime of the loan, or variable, where
+ the interest rate can change over time. Typically, interest payments are included
+ with each periodic repayment.
</para>
</formalpara>
<formalpara><title>Periodic Repayments</title>
<para>
- Since these repayments are generally made on some sort of scheduled basis,
- such as weekly, monthly, quarterly, or yearly, they are referred to as
- <quote>periodic repayments</quote>. The sum of all periodic repayments plus
- the final repayment will add up to the loan principal plus the interest.
+ Since repayments are generally made on some sort of scheduled basis, such as
+ weekly, monthly, quarterly, or yearly, they are referred to as <quote>periodic
+ repayments</quote>. The sum of all periodic repayments plus the final repayment
+ will add up to the loan principal plus the interest.
</para>
</formalpara>
<formalpara><title>Fees</title>
<para>
- There may be other fees besides interest that are required to be paid with
- every installment. These are called <quote>recurring fees</quote>. Examples of
- recurring fees include (but are not necessarily limited to):
+ There may be other fees besides interest that are required to be paid, possibly
+ with every installment. These are called <quote>recurring fees</quote>. Examples
+ of recurring fees include (but are not necessarily limited to):
-<!--would prefer itemized list not in para, but formalpara requires para-->
-<itemizedlist>
- <listitem>
- <para>
- <quote>Impound</quote> or <quote>escrow</quote> account
- payments. (Payments of this sort are commonly used to hold funds to pay
- annual or bi-annual property taxes.)
- </para>
- </listitem>
+ <!--would prefer itemized list not in para, but formalpara requires para-->
+ <itemizedlist>
+ <listitem>
+ <para>
+ <quote>Impound</quote> or <quote>escrow</quote> account payments. Payments
+ of this sort are commonly used to hold funds to pay annual or bi-annual
+ property taxes.
+ </para>
+ </listitem>
- <listitem><para>Mortgage insurance</para></listitem>
+ <listitem><para>Mortgage insurance</para></listitem>
- <listitem><para>Disability insurance</para></listitem>
+ <listitem><para>Disability insurance</para></listitem>
- <listitem><para>Loan account maintenance fees</para></listitem>
-</itemizedlist>
+ <listitem><para>Loan account maintenance fees</para></listitem>
+ </itemizedlist>
</para>
</formalpara>
+</sect2>
-<formalpara><title>Summary</title>
+<sect2><title>Summary</title>
<para>
- In summary, the borrower receives a lump sum from the lender at the start of
- the loan. The borrower makes a periodic payment to the lender. The periodic
- payment is the sum of the principal payment (which is used to pay down the
- balance of the loan) plus the interest payment (which rewards the lender for
- allowing the use of the money by the borrower) plus any recurring fees (which
- cover any incidentals.) At the end of the loan, the borrower has paid back the
- entire principal.
+ In summary, the borrower receives a lump sum from the lender at the start of the
+ loan. The borrower makes a periodic payment to the lender. The amount of the
+ periodic payment is the sum of the principal payment (which is used to pay down the
+ balance or remaining principal of the loan,) the interest payment (which rewards
+ the lender for allowing the use of the money by the borrower,) plus any recurring
+ fees (which cover any incidentals.) At the end of the loan, the borrower has paid
+ back the entire principal.
</para>
-</formalpara>
+</sect2>
</sect1>
<sect1 id="details.loans.example">
<title>Example</title>
<para>
- For an example, you might borrow $25,000.00 for a new auto and agree to pay
- the bank one payment each month for 60 months. The interest rate on the loan
- might be 5.5%.
+ For an example, you might borrow $25,000.00 for a new automobile and agree to pay
+ the bank one payment each month for 60 months. The interest rate on the loan might
+ be 5.5% per year.
</para>
<para>
- In this scenario, the loan amount is $25,000.00. The term of the loan is 60
- months or 5 years. The term of the loan could also be described as 60
- payments since there will be one payment per month for 5 years. The repayment
- frequency is one month since periodic repayments will be made once a
- month. The periodic repayment, which is calculated by &kmymoney;, would be
- $477.53.
+ In this scenario, the loan amount is $25,000.00. The term of the loan is 60 months
+ or 5 years. The term of the loan could also be described as 60 payments since
+ there will be one payment per month for 5 years. The repayment frequency is one
+ month since periodic repayments will be made once a month. The periodic repayment,
+ which is calculated by &kmymoney;, would be $477.53.
</para>
<para>
A <quote>loan schedule</quote> is a chart or table that shows the date that a
- repayment should be made and the amount of each periodic repayment. Often,
- these schedules break the periodic payment down into its constituent parts:
- the principal repayment, the interest payment, and the recurring fees payment.
+ repayment should be made and the amount of each periodic repayment. Often, these
+ schedules break the periodic payment down into its constituent parts: the principal
+ repayment, the interest payment, and the recurring fees payment.
</para>
</sect1>
<sect1 id="details.loans.creation">
<title>Creating a New Loan</title>
+<!-- FIXME: this section should really be expanded with screenshots of the new loan
+ wizard and more detailed explanation of the various entry fields. In
+ particular, it needs an explanation of how fixed payments are calculated by
+ adjusting the amount of principal and interest of each payment, sometimes
+ resulting in a final payment different from the others. -->
+<para>
+ In &kmymoney;, a loan is a type of account. Therefore, to create a new loan, you
+ begin by selecting the <menuchoice><guimenu>Account</guimenu><guimenuitem>New
+ Account</guimenuitem></menuchoice> menu item. Continue by answering the questions
+ that the wizard poses to you.
+</para>
+
+<note>
<para>
- In &kmymoney;, a loan is a type of account. Therefore, to create a new loan,
- you begin by selecting the <menuchoice><guimenu>Account</guimenu><guimenuitem>New
- Account</guimenuitem></menuchoice> menu item. Continue by answering the questions that
- the wizard poses to you.
+ The <guilabel>New Account Setup</guilabel> wizard not only sets up a Loan Account,
+ but also creates a <guilabel>Scheduled Transaction</guilabel> for the periodic
+ payments. If you try to edit either the Loan Account or the associated Scheduled
+ Transaction, you will be presented with the <guilabel>Edit Loan Account
+ Wizard</guilabel>. This allows you to adjust many of the details of the loans, but
+ not all. Unfortunately, some aspects of the Loan Account cannot currently be
+ changed, such as the account's parent account.
</para>
+</note>
<para>
- Optionally, a loan can be associated with a particular institution. If you are
- borrowing from a mortgage company or a car loan company, you could create an
- institution entry that describes this firm and associate the institution with
- your loan. If you are borrowing from your Uncle Ted, there is no requirement
+ Optionally, as with any other account, a loan can be associated with a particular
+ institution. If you are borrowing from a mortgage company or a car loan company,
+ you could create an institution that describes this firm and associate your loan
+ with the institution. If you are borrowing from your Uncle Ted, there is no need
to set up an institution.
</para>
</sect1>
@@ -182,16 +206,14 @@
<title>Making Extra Principle Repayments On Loans</title>
<para>
- If you would like to make an extra principal repayment, you can do so.
- Simply <link linkend="details.ledger.transactions">enter a transaction</link>
- using the ledger. This extra repayment of principal will be taken into
- account for the interest calculation that happens for the next periodic
- payment.
+ If you would like to make an extra principal repayment, you can do so. Simply
+ <link linkend="details.ledger.transactions">enter a transaction</link> using the
+ ledger. This extra repayment of principal will be taken into account for the
+ interest calculation that happens for the next periodic payment.
</para>
<para>
- Examples of extra principal payments include (but are not necessarily limited
- to):
+ Examples of extra principal payments include (but are not necessarily limited to):
</para>
<itemizedlist>
@@ -199,7 +221,7 @@
<listitem>
<para>
- Doubling the periodic principal repayment for every period. (The principal
+ Doubling the periodic principal repayment for every period. (The principal
repayment can be found for any particular period by referring to the loan
schedule.)
</para>
@@ -213,12 +235,14 @@
</listitem>
</itemizedlist>
-<note><para>
- If you are doubling the principal repaid with every periodic payment,
- you will need to recalculate the loan schedule for each installment. This will
- allow there to be an accurate value for the required principal repayment with
- each installment.
-</para></note>
+<note>
+ <para>
+ If you are doubling the principal repaid with every periodic payment, you will
+ need to recalculate the loan schedule for each installment. This will allow
+ there to be an accurate value for the required principal repayment with each
+ installment.
+ </para>
+</note>
</sect1>
</chapter>
More information about the kde-doc-english
mailing list