Money 2006 Asset vs Loan

#2 02-17-2006, 10:46 PM

"Mike" <Mike[at]discussions.microsoft.com> wrote in message
news:EFF1D2A5-7E32-4865-8344-AA0AC2D075B8[at]microsoft.com...
- quote -

> So, to clarify; the asset accounts are not for tracking anything except
> the
> actual value of the asset, as opposed to the loan account, which tracks
> the
> balance owed on the asset. Is this correct?

Yes.

#1 02-17-2006, 08:55 PM

"Chris Cowles" wrote:

- quote -

> "Mike" <Mike[at]discussions.microsoft.com> wrote in message
> news:34F23D9F-8D19-4735-B178-260029CA1ACF[at]microsoft.com...
> > I have searched through all of the help files, and I cannot find a better
> > explaination anywhere. When you create a loan account in Money, it asks
> > you
> > if you want to attach an asset to the loan. For example, when I created
> > my
> > car loan, it asked me to attach my car. How are we supposed to use the
> > asset
> > account as opposed to the load account? It currently shows as an asset,
> > but
> > if I add the payments I have made to it, it reduces the value. What,
> > exactly, should I be putting in here and tracking?
> Loan transactions don't directly affect the asset account. That association
> is used in the lifetime planner. If you sell the asset, the lifetime planner
> assumes the loan must be paid off.
> The only transactions that should be entered in an asset account are things
> that materially affect its value. Depreciation for cars is an example, but
> some people track that in a separate "contra-" account with a name related
> to the asset. Additions to a house are another example. Some people also add
> adjustments to an asset to reflect changes in market value, such as annually
> adjusting the value of your house to estimates market value.
> Personally, I enter car depreciation directly in the car asset account, and
> track home appreciation in a separate account. Your choices for what works
> for you will probably vary from mine.
> --
> Chris Cowles
> Gainesville, FL

So, to clarify; the asset accounts are not for tracking anything except the
actual value of the asset, as opposed to the loan account, which tracks the
balance owed on the asset. Is this correct?

02-17-2006, 11:44 AM

"Mike" <Mike[at]discussions.microsoft.com> wrote in message
news:34F23D9F-8D19-4735-B178-260029CA1ACF[at]microsoft.com...
- quote -

> I have searched through all of the help files, and I cannot find a better
> explaination anywhere. When you create a loan account in Money, it asks
> you
> if you want to attach an asset to the loan. For example, when I created
> my
> car loan, it asked me to attach my car. How are we supposed to use the
> asset
> account as opposed to the load account? It currently shows as an asset,
> but
> if I add the payments I have made to it, it reduces the value. What,
> exactly, should I be putting in here and tracking?

Loan transactions don't directly affect the asset account. That association
is used in the lifetime planner. If you sell the asset, the lifetime planner
assumes the loan must be paid off.

The only transactions that should be entered in an asset account are things
that materially affect its value. Depreciation for cars is an example, but
some people track that in a separate "contra-" account with a name related
to the asset. Additions to a house are another example. Some people also add
adjustments to an asset to reflect changes in market value, such as annually
adjusting the value of your house to estimates market value.

Personally, I enter car depreciation directly in the car asset account, and
track home appreciation in a separate account. Your choices for what works
for you will probably vary from mine.
--
Chris Cowles
Gainesville, FL

#-1 02-17-2006, 05:18 AM

I have searched through all of the help files, and I cannot find a better
explaination anywhere. When you create a loan account in Money, it asks you
if you want to attach an asset to the loan. For example, when I created my
car loan, it asked me to attach my car. How are we supposed to use the asset
account as opposed to the load account? It currently shows as an asset, but
if I add the payments I have made to it, it reduces the value. What,
exactly, should I be putting in here and tracking?

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