[Kmymoney] early loan repayment

[Fernando Vilas]

On Monday, February 20, 2012 12:11:33 hugo borrell wrote:
> Hello,
> 
> I'm really trying hard but I still can't get how I can use the loan
> fonction of KMyMoney.
> 
[...]
> 
> I don't get why the recurring transaction is not implemented from first
> payment 25 monthes ago... And what let me expect that next transactions
> will be entered from now on.
> 

It does exactly that. However, all overdue transactions are shown on the 
current date in the ledger, not the date that they were due. KMM will not 
automatically match overdue transactions against ones in the ledger at the 
time you create the loan. 

I would advise you to use the option when creating the loan that the loan was 
made in the past, and provide the correct opening date. On my system, it shows 
"Did you make/receive any payments yet?" If you select Yes, the option "Which 
payments do you want to record?" becomes available. From there, you can 
provide the balance before recording, which would be the amount of the loan if 
you are starting at the beginning. That is entered on the next page of the new 
account wizard.

> There is something else that I can't understand : as time passes by,
> KMyMoney withdraws the same amount of money from the passive loan account,
> as if debt service was constant, which is false : as time goes by, part of
> the loan has been refunded and the interests part decrease gradually... and
> proportion of capital refunded increase at each recurring transaction...
> 
> Have I missed something ?

With a non-zero interest rate, KMM will schedule a periodic transaction for a 
fixed amount from the account you select. This amount is split based on the 
interest calculation each period. In double-entry accounting terms, the 
transaction looks like:

Withdraw $X from asset account
Pay interest rate * liability balance into interest expense account
Pay $X - interest paid this period into the liability account

The wizard allows additional features like fees to be added to the split for a 
more complex transaction, but that is the basis.

-- 
Thanks,
Fernando Vilas
fvilas at iname.com
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