How to add a bond to my investment

[Franco Martelli]

On 06/10/22 at 00:43, Jack via KMyMoney wrote:
> On 2022.09.28 10:54, Franco Martelli via KMyMoney wrote:
>> Hi everybody,
>>
>> I've recently bought a bond, an italian BTP, KMM asks me number of 
>> shares but in the bank accountant there isn't. In the bank accountant 
>> there is the dry price, the interest accruals and the equivalent value 
>> as well as expenses and taxes.
>> The problem is that I haven't Shares, should I calculate it manually 
>> (equivalent value / dry price)? Or enter a single share of the 
>> equivalent amount?
>> TIA
>>
>> -- 
>> Franco Martelli
> Hello Franco,
> 
> Unfortunately, KMM has not been designed specifically to handle bonds, 
> so you will need to do it in a way that makes sense to you.  I see two 
> very different possible approaches.
> Within an investment account, I would enter a single share, and make the 
> initial value the amount you paid to purchase it.  When you sell it, you 
> can enter the price of the full value.  Depending on the terms of that 
> bond, you could even enter intermediate prices between the buy and sell, 
> if it makes any sense.
> A totally different way would be to use a regular asset account (such as 
> savings) where you deposit the initial purchase price, then add the 
> increase in value as interest or dividend (at whatever point between buy 
> and sell makes sense to you) and then when you sell, just transfer the 
> total amount back to whtever account you actually put the fund in.
> 
> To me, the only essential point is that the account starts with the 
> initial purchase amount, and ends with the final redemption amount.  It 
> could also be important for you that the records of the account and it's 
> transactions will be useful to you in preparing your tax forms - and 
> that is clearly different in every country.
> 
> Jack

Thanks for your answer Jack,
since the bond has an ISIN code number for me has sense treat it as an 
investment instead of asset account, therefore in the investment ledger 
entering a single share of the value I paid is the best choice.
I will add the dry price in the note of the transaction so I'll have a 
remark of the price useful in the future if I'll decide to sell it.
No problem for tax forms here for this kind of bond; taxes are paid to 
the bank when you buy/sell it, also the crediting of the coupons is 
already taxed.
Cheers

-- 
Franco Martelli