[Kmymoney] Credit card account entries...

[Thomas Baumgart]

Hi,

On Tuesday 22 May 2012 18:29:29 Zed wrote:

> Thank you Jack, and Ian Millington for your helpful replies.  I think I now
> have it clear in my mind :-)
> 
> I agree with your suggestion, Jack, that something in the FAQs could be
> helpful, and put forward the following for consideration.
> 
> Credit Card accounts
> 
> (1) Entries for recording Purchases.
> Use Credit Card account
> Choose Charge and enter name of Vendor.
> Click on Category and choose expense category to which the expenditure
> belongs.
> 
> (2) Entries for recording Payments
> Use Credit Card account
> Choose Transfer From  - Click and choose Credit Card
> 
> Transfer from - Click and choose Cheque accountk on Category and choose
> expense category to which the expenditure refers.

TBH, I don't get that second part. I would write it as follows:

- Use credit card account
- Click on the 'Transfer' tab
- Choose 'From' (as opposed to 'Pay to'). This should label the category field 
with 'Transfer from'
- Leave the payee field blank
- Choose Cheque account on Category (which is labelled 'Transfer from' by now)
- Enter the amount as positive number
- Save the transaction

An alternative would be the following (the result is the same though):

- Use checking account
- Click on the 'Transfer' tab
- Choose 'Pay to' (as opposed to 'From'). This should label the category field 
with 'Transfer to'
- Leave the payee field blank
- Choose Credit Card account on Category (which is labelled 'Transfer to' by 
now)
- Enter the amount as positive number
- Save the transaction


In (2) there is no expense category involved since it is a transfer of funds 
between an asset and a liability account. No expense in sight here (even 
though you feel you pay for something - but you have recorded that already 
during (1) ).

> I realise that this sounds very simplistic but for one of my advanced years
> it explains in clear terms how to go about recording entries for Credit
> Cards.
> 
> What I do find difficult to get my head arounds is that in the options for
> recording payments I have "Transfer from" to the Credit Card entry and
> "Transfer from" for the Cheque account entry.


-- 

Regards

Thomas Baumgart

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