# [Kmymoney] Credit card usage

Edney Matias edneymatias at gmail.com
Fri Jan 20 16:20:43 UTC 2012

```Hey Jack!

Thank you, but let me try to summarize what i do and what you suggest.
Correct me if i'm wrong.

Acctualy i have that account called credit card. When i buy something with
several installments the first thing i'm doing is a scheduled transaction
that automatically throw a charge to the credit card account. I set the
number of installments for this transaction, the value and the due date. So
monthly i can reconcile the items comparing the credit statement with
the transactions list that where triggered. Everything ok, i pay the credit
bill with a transfer from my bank account with only one operation. It works
fine, i can check the total value of the bill and reconcile it with the
bank statement, but i don't have an idea of how much money i have available
on my credit card since i'm always throwing a franction of the total value.

What you saying is that when i buy something, i must throw the full value
on the credit card. Then i should schedule the payment of the credit card
that will lower the value of the debet. Ok, this will allow me to control
the credit balance and the amount of available money but I wont know what
i'm paying in every bill.

Alternativally i think i use a mix of both. I  throw all installments of a
transaction on the credit, including the future ones, and then monthly pay
the credit bill lowering the debts. Since all installments where thrown, i
can check the balance. Then I can setup a report that shows the
installments of a givem month.

What you think?

Thank you again.

Em sexta-feira, 20 de janeiro de 2012, Jack escreveu:

> On 2012.01.20 07:15, Edney Matias wrote:
>
>> Hi there.
>>
>> I've create a credit card account with \$1000 (-\$1000 indeed) of open
>> balance and absolut limit. If i buy a bicycle for \$100 i will throw a
>> charge of that value, right? The final balance will be -\$900.  But what if
>> i had split that value in two payments of equal value. In the first month i
>> would have a charge of \$50 and the balance would be -\$950. I can then, add
>> a scheduled transaction to reminds me of the remaining payment. But the
>> balance is wrong, the right balance would be -\$900. How can I automate that
>> situation in KMyMoney?
>>
>> Thank you.
>>
> First, if I understand correctly, you probably should have started with a
> balance of \$0 if you did not already owe anything on the account.  You can
> then apply the limit of \$1000.  At least the way I look at it, the balance
> of a credit card account is the amount I owe.
>
> You have to think about to different types of transactions on a credit
> card account.  When you buy something, it decreases that balance on the
> account, as that money has been paid to the store.  When you make a payment
> to the account, it decreases the balance by the amount you pay.  In this
> case, you made a single purchase of \$100, so the balance really goes to
> \$-100.  Your intent is to pay that balance in two payments, so you can
> either make the first payment of \$50, moving the balance to \$-50, and
> setting a schedule for the second payment, or just creating a schedule for
> both payments.
>
>
> Jack
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Edney Matias