Comments inline below.

"GreggC" <GreggC[at]discussions.microsoft.com> wrote in message
news:0EC00880-1E94-4888-80C4-9BBD0B46072D[at]microsoft.com...
- quote -

Actuially, I put most everything in the actual purchase transaction. See my
example Txn #2. The down payment was just that--nothing else was final until
they got the rest of the money and I got the car. I would put most
everything there, but it's not mandatory. For me it puts it all in one
place.

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It depends on the asset. Very few assets really have much recoverable
value--they depreciate to more or less $0. The only reason to track
something as an asset is to get net worth reporting. I don't know that your
tools or your furniture or your clothing (or your automobiles, unless you
happen to own a 1932 Dusenberg or a 1937 Mercedes-Benz 540K or something
similar) are really a bankable contributor to your net worth. Your house, on
the other hand, clearly is.

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I'm still trying to get any meaningful results from my M06 trial. The
machine I'm trying it on runs M06 like a snail on Valium. From early work, I
don't see how it's solved many, if any, of the issues I had with M05. (See
http://umpmfaq.info/Money2005.htm. YMMV.) My production version is still M04
Deluxe.

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Glad to do it. Thanks for the feedback.

OK, So then we actually "couch" all the transactions with the original down
payment transaction. Am I seeing this correctly?

Although it is far easier to expense transactions, isn't it more accurate to
track assets? It seems the income to expense ratio would be more accurate as
well. I'm probably being a little to anal.

Have you worked with the latest rendition of Money? I have owned and used
every version of Money since '95. I wasn't happy with the changes I saw in
Money 2005 (i.e.-the concerted push to use Passport) and went back to using
2004. Is Money 2006 an improvement over 2005?

Thanks again for your help!

"Dick Watson" wrote:

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I'm not sure we are on quite the same page yet.

Let's say I wrote a check for $1,000 for the down payment and then another
one for $538.75 when I pick up the $25,000 vehicle and am borrowing $25,000.

Txn #1
Account: Checking
Check #: 12345
Payee: BillyBob's Great Big Motors
Category: Miscellaneouseposit, Credit to follow
Amount: $1,000.00
Memo: Deposit on the '05 AsphaltBlaster

Txn #2
Account: Checking
Check #: 12678
Payee: BillyBob's Great Big Motors
Amount: $538.75
Memo: Close on the '05 AsphaltBlaster

Splits:
Category: Miscellaneouseposit, Credit to follow
Amount: ($1,000)
Memo: less down payment, see check # 12345

Category: Other Income:Loan Proceeds received -- (some would just leave
unassigned)
Amount: ($25,000.00)
Memo: (see loan account named "'05 AsphaltBlaster Loan")

Category: Transfer:'05 AsphaltBlaster Asset
Amount: $25,000.00
Memo: (initial asset value)

Category: Taxes:Sales
Amount: $1,338.75

Category: Other:Miscellaneous Fees
Amount: $200.00
Memo: lots of other fees

This way you keep it all in one place and track the money flow.

Would you use a similar technique to purchase tools and furniture? Probably
not. Many of us don't even track the value of our automobiles in asset
accounts, preferring, instead, to just expense them when we buy them.

"GreggC" <GreggC[at]discussions.microsoft.com> wrote in message
news:FC319EEF-B338-4202-817E-C503F5296500[at]microsoft.com...
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Dick - Thank you for the in depth response. I have done the following:

In the Cash account I created a spend transaction that transfers the actual
sales price of the vehicle to the assosciated asset account. I created a
receive transaction in the amount of the down payment that credits the
Miscellaneouseposit, credit to follow. I also created a receive transaction
in the amount of all assosciated taxes and fees. Is this along the lines of
what you had suggested? Is using the Cash account the proper vehicle for
these transactions? Would I use a similiar technique for the purchase of
other items, such as furniture or tools?

Thanks again!

"Dick Watson" wrote:

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When you create the asset account set its initial balance to zero if you are
going to do it this--most correct--way. Were I going to track the auto as an
asset, I'd transfer only the purchase price but expense everything else. The
taxes and interest do not add to the value of your asset. If you do it this
way, the initial zero value will change to the value of the purchase price
transfer. What I'd do with he down payment is this: when it is first
entered, I'd expense it against something like "Miscellaneouseposit,
Credit to follow" (I created this category). Then when I buy the car, I'd
create a transaction that is split into the purchase price transfer to the
asset account, an income entry in the amount of the pervious
"Miscellaneouseposit, Credit to follow" amount, the taxes and fees, and
then a "Other Income:Loan Proceeds Received" amount. The whole transaction
adds up to the amount you paid at closing, The "Miscellaneouseposit,
Credit to follow" category gets back to $0. The Asset account gets its high
water mark. All is good.

"GreggC" <GreggC[at]discussions.microsoft.com> wrote in message
news:7EB70DB1-0E3A-4D62-B30B-C6FC311E5637[at]microsoft.com...
- quote -

Richard - Thank you for the quick response. Unfortunately, I need a little
more basic information. For example, I created an asset account for the new
vehicle. I entered the purchase price for the new vehicle in the appropriate
area (including tax and interest). When I do a transfer of the down payment
from checking to the asset account, it increases the value of the asset by
the down payment amount. Apparently I am doing something fundamentaly wrong.
Any ideas?

"Richard Bollar" wrote:

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You could simply create an Asset account. When you purchase items, make the
purchase a transfer into the asset account. When you sell them, transfer
them out. If there's a gain/loss on the sale, enter a transaction for that
amount to an income or expense category.

--

"GreggC" <GreggC[at]discussions.microsoft.com> wrote in message
news:13C15CDF-5492-4FAA-AD66-BB7E3B253AB9[at]microsoft.com...
- quote -

Can someone please outline how to enter the purchase of assets. As an
example, we recently purchased a new vehicle with a large down payment. As
the down payment is the exchange of one asset for another, how is this best
entered in Money. Would the same type of entry work for the purchase of
furniture or tools or any other acquisition of items with a long life
expectancy.