KMyMoney vs Gnucash double-entry entry

[Thomas Baumgart]

Jesus,

On Sonntag, 28. April 2019 18:00:55 CEST Jesus Varela wrote:

> Hi all,
> 
> I was reading the handbook and have a question.
> 
> "As with GnuCash, data is entered in the form of transactions, each
> generally consisting of 2 or more split entries. In fact, valid GnuCash
> transactions will always contain at least 2 splits, and to conform to
> GnuCash's double-entry bookkeeping standard, these must be in monetary
> balance (i.e., they must balance out to zero). KMyMoney encourages, but
> does not enforce, this standard, but any imported transaction which is not
> balanced will be marked in the ledger view as having a problem."
> 
> That is under the section, balanced transactions.
> https://docs.kde.org/trunk5/en/extragear-office/kmymoney/details.impexp.html
> 
> I want to know, why doesn't KMyMoney adhere to the same standard, that the
> monetary value must balance to zero?

In fact it does exactly that.

> Double-entry accounting rules, should be standard, no?

Yes.

> I am also wondering, while on a similar topic, why KMyMoney does not regard
> expenses and income as accounts instead of expense categories. Then just
> make everything a transfer.

We call them category but under the hood they are accounts.

> For example, I could see having a list of accounts like so:
> 
> Expense Account: Dinning
> And Categories:
> -  Fast Food
>  - restaurants

In that sense, KMyMoney does not support categories.

> I want to use KMyMoney but I want to make sure it is adhering to all the
> best financial practices. Treating personal finances like business
> finances, same balance sheet reports, cash flow reports and profit loss
> reports, is not a bad idea.

That's exactly what KMyMoney does (or at least tries to do)

> The current cash flow report is not really
> doing what a cash flow report should do. That report is extremely valuable
> for people to better their financial situation.

That could well be. If you have some idea how to improve that are, please provide a proposal.

> Until KMyMoney is ready for business use, I don't think it needs the extra
> customer, jobs and vendor support.

I am not aware that there are specific business related features built into KMyMoney.

> KMM is a great product! Thanks for all of your outstanding work.

Thanks for the feedback.


-- 

Regards

Thomas Baumgart

https://www.signal.org/       Signal, the better WhatsApp
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