path: root/doc/en/details-accounts.docbook

<?xml version="1.0" encoding="UTF-8"?>
<chapter id="details.accounts">
<chapterinfo>
  <authorgroup>
    <author>
      <firstname>Michael</firstname>
      <othername>T.</othername>
      <surname>Edwardes</surname>
      <affiliation>
        <address><email>mte@users.sourceforge.net</email></address>
      </affiliation>
    </author>
    <author>
      <firstname>Roger</firstname>
      <surname>Lum</surname>
      <affiliation>
        <address><email>rogerlum@gmail.com</email></address>
      </affiliation>
    </author>
  </authorgroup>
  <date>2009-08-10</date>
  <releaseinfo>1.0</releaseinfo>
</chapterinfo>
  
<title id="details.accounts.title">Accounts</title>

<sect1 id="details.accounts.view">
<title>The Accounts View</title>

<para>
  The Accounts View provides a summary of all the accounts. There are four
  different account categories: Asset, Liability, Income, and Expense.  Typical
  asset accounts include bank accounts, cash, and investments, while typical
  liability accounts include credit cards and loans.
</para>

<para>
  There are two ways to view the accounts: List or Icon view, which may be
  selected by clicking on the appropriate tab at the top of the view.
</para>

<para>
  In the List view, the accounts are grouped under four headings: Asset,
  Liability, Income, and Expense. List view shows the name and balance or value
  of each account.  Income and Expense list the categories that each transaction
  is filed under, and provide similar functionality to the Categories
  screen. The options and features involving Income and Expense accounts are
  described in detail in the <link
  linkend="details.categories">Categories</link> chapter. The rest of this
  chapter will focus on Asset and Liability account functionality.
</para>

<para>
  In the Icon view, the Asset and Liability accounts are shown with icons
  indicating the account type.  &kappname; initially places the icons
  alphabetically, but you can move the icons to any position you want, just by
  dragging the icon with the mouse.  Note, however, that just moving an icon
  does not currently trigger &kappname; to think that any data has been changed.
  This means that you need to make some other change, such as editing an account
  or a transaction and saying OK (even without actually changing any data) so
  &kappname; allows you to save the file.  The saved file will include the new
  icon positions.
</para>
</sect1>

<sect1 id="details.accounts.create">
<title>Creating an Account</title>

<para>
  <emphasis>
    NOTE: You must have a file open before you can create a new account. If you
    do not have an existing file, you will need to create a <link
    linkend="firsttime-3">new file</link>.
  </emphasis>
</para>

<para>
  To create a new account, you can either select
  <menuchoice><guimenu>Account</guimenu><guimenuitem>New
  account...</guimenuitem></menuchoice> from the menu or choose the
  <guiicon><inlinemediaobject><imageobject><imagedata fileref="newacct.png"
  format="PNG"/></imageobject><textobject>
  <phrase>New</phrase></textobject></inlinemediaobject></guiicon> icon from the
  toolbar.
</para>

<para>
  Alternatively, to create an account using the accounts view, click on the
  Accounts icon in the view selector and then right click on the Asset tree icon
  in the right hand view and select <guimenuitem>New account...</guimenuitem>
  from the popup menu. The Asset tree holds all of your accounts that are an
  asset. Assets, and all the other account types, are discussed in more detail
  later in this manual.
</para>

<sect2 id="details.accounts.create.institution">
<title>The Institution (Bank) name</title>

<para>
  <screenshot>
    <mediaobject>
      <imageobject>
        <imagedata fileref="accwiz1.png" format="PNG" />
      </imageobject>
      <textobject>
        <phrase>Account Wizard</phrase>
      </textobject>
    </mediaobject>
  </screenshot>
</para>

<para>
  The first step involves selecting an institution for the account.  If this is
  an account for an institution you have already created, you can select the
  institution from the dropdown list.  If you want to create a new institution,
  click on the <guibutton>New Institution</guibutton> button.  This will bring
  up the New Institution Dialog, as described in the previous section.  If this
  is not a bank account, or if you do not want to use online banking, you do not
  need to specify an institution.
</para>

<para>
  The Account Number and the <acronym><ulink
  url="http://en.wikipedia.org/wiki/International_Bank_Account_Number">IBAN
  (International Bank Account Number)</ulink></acronym> are not currently used
  by &kappname;.  These fields may be left blank and filled in at a later time;
  they are only required for online banking.
</para>

<para>
  To proceed to the next step click on <guibutton>Next</guibutton>.
</para>
</sect2>

<sect2 id="details.accounts.create.account">
<title>Account</title>

<para>
  <screenshot>
          <mediaobject>
            <imageobject>
              <imagedata fileref="accwiz2.png" format="PNG" />
            </imageobject>
            <textobject>
              <phrase>Account Wizard</phrase>
            </textobject>
          </mediaobject>
  </screenshot>
</para>

<para>
  This page is used to configure the type of account.
</para>

<para>
  First, enter a name for the account. This name will be used to identify it.
</para>

<para>
  Next, select the type of account from one of the types available from the
  dropdown list:
</para>

<variablelist>
  <varlistentry>
    <term>Checking</term>
    <listitem>
      <para>
        A normal checking account, the type you get with any bank or credit union.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Savings</term>
    <listitem>
      <para>
        A normal savings account, the type you get with any bank or credit union.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Credit Card</term>
    <listitem>
      <para>
        An account to represent your credit card.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Cash</term>
    <listitem>
      <para>
        A general purpose account, typically used for accounts not held at a
        bank, such as the cash in your wallet.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Loan</term>
    <listitem>
      <para>
        An account to manage a loan for money either borrowed or lent.  With a
        Loan account &kappname; automatically calculates interest payments to
        help you track the remaining principal on the loan.  Loans with no
        interest might use the plain Asset or Liability type below, depending on
        whether the money is lent or borrowed.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Investment</term>
    <listitem>
      <para>
        An account to manage an investment such as stocks or investment funds.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Asset</term>
    <listitem>
      <para>
        An account to manage an asset that does not fit in one of the above types.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Liability</term>
    <listitem>
      <para>
        An account to manage a liability such as money you borrowed or a future
        expense.  If interest needs to be calculated, you might be better using
        the Loan type above.
      </para>
    </listitem>
  </varlistentry>
</variablelist>

<para>
  Select the currency to be used for the account from the dropdown list.
</para>

<para>
  Enter the date the account was opened or select it from the calendar using the
  icon to the right.
</para>

<para>
  Enter the opening balance for the account. If this is an existing bank account
  this information can be found on your statement. If it is a new account, the
  opening balance can be left at zero.
</para>

<para>
  Selecting the <emphasis>Preferred Account</emphasis> check box will allow
  preferred access in some dialogs and views of &kappname;.
</para>

<para>
  To proceed to the next step click on Next.
</para>
</sect2>

<sect2>
<title>Credit Card Accounts</title>

<para>
  When creating a Credit Card account, you can optionally have &kappname; create
  a <link linkend="details.schedules">scheduled transaction</link> for you.
</para>

<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz6.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>

<para>
  If you want such a transaction generated, make sure the tick box is checked
  and enter the required information.
</para>

<para>
  Click on <guibutton>Next</guibutton> to continue.
</para>
</sect2>

<sect2>
<title>Investment Accounts</title>

<para>
  For Investment accounts, you have the option to create an associated Brokerage
  account.  For more information see <link
  linkend="details.investments">Investments</link>
</para>

<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz7.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>
</sect2>

<sect2>
<title>Loan Accounts</title>

<para>
  Loan accounts are special accounts used to help you manage Loans with interest
  and scheduled repayments.  By providing &kappname; with information about the
  loan, &kappname; can help you track interest payments and the remaining
  principal of the loan.
</para>

<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz8.1.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>
	
<para>
  On the Details page you enter the general information about the loan.
</para>

<para>
  First, select whether you are borrowing or lending money.  If you are
  borrowing money the loan will be listed in Accounts under Liabilities.  If you
  are lending money the loan will be listed under Assets.
</para>
	
<para>
  Next, select the payee or payer of the loan.  As always, if the name doesn't
  yet exist in the Payees list, enter it here and &kappname; will create it for
  you.
</para>

<para>
  The next three items are for handling Loans on which you've already made
  payments.  If you select Yes in the "Have you made/received any payments yet?"
  item you can then select whether you want to record all payments or just those
  from the beginning of the current year.  If you want to record from the
  beginning of the current year, you are than asked to input the current
  balance.
</para>
	
<para>
  Then, select how often payments will be made and how often interest is
  compounded.  Compounding is where the interest is added to the amount owed on
  the loan so that when the interest is next calculated there will be more
  interest paid on the interest.  It's common for interest to be compounded at
  the same frequency that payments are made.
</para>

<para>Next, enter the date the first recorded payment will be made.
</para>
	
<para>
  Finally, enter information about how the interest rate varies.  If the loan is
  fixed-rate there is nothing to do.  If the rate varies, select Variable in
  "Type of interest rate" and then enter the interval between interest rate
  changes and the date the first change of interest rate is due: &kappname; will
  ask you to update the interest rate when that date arrives.
</para>
	
<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz8.2.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>
  
<para>
  The Payments page is where you enter the payment and interest values for the
  loan.
</para>

<para>
  First, select whether the interest rate is calculated when the payment is
  received or when it becomes due.  If you don't know, leave it on the default
  value.
</para>

<para>
  Next, enter the following values:
</para>

<variablelist>
  <varlistentry>
    <term>Loan amount</term>
    <listitem>
      <para> The amount of the loan.</para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Interest rate</term>
    <listitem>
      <para>The annual percentage interest rate of the loan.</para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Term</term>
    <listitem>
      <para>
        The length of the loan.  Enter a number and select either Months or
        Years.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Payment (principal and interest)</term>
    <listitem>
      <para>
        The amount paid for each loan payment.  This is the total of the
        principal and interest paid with each payment.
      </para>
    </listitem>
  </varlistentry>

  <varlistentry>
    <term>Balloon payment</term>
    <listitem>
      <para>
        Additional final payment made at the end of the term to pay off the
        remaining principal of the loan.  For a repayment loan this is often
        zero.  For an interest-only loan this will be the same as the loan
        amount.
      </para>
    </listitem>
  </varlistentry>
</variablelist>

<para>
  Finally, use the <guibutton>Calculate</guibutton> button to check the values
  you have entered.  You must have entered either all or all but one of the
  values listed above.  If you omit two or more values the button is disabled
  because it is not possible to check that the entered values are consistent: in
  that case you will not be able to use the Loan account facility in &kappname;
  and will instead have to use a Liability or Asset account to track the loan
  manually.
</para>
	
<para>
  If you omit one value &kappname; will try to calculate it for you.  If you
  have entered all values &kappname; will check the values are consistent.
  &kappname; will not adjust entered values other than the "Balloon payment",
  which it may adjust slightly to deal with rounding.  If the values are
  inconsistent or &kappname; cannot calculate the omitted value &kappname; will
  let you know so that you can correct any errors and repeat the calculation.
</para>
	
<para>
  Once the values are consistent the <guibutton>Next</guibutton> button is
  enabled and you can advance to the next page.
</para>
	
<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz8.3.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>
	 
<para>
  The Fees page is where you can enter any fees added to the loan payments.
</para>
	
<para>
  If there are any fees press the <guibutton>Additional Fees</guibutton> button.
  The Transaction Split editor will be displayed for entry of the fees.  Any
  lines added here will be included in the payment schedule for the loan.  When
  you save the splits the Fees page will display the principal and interest
  payment, the total additional fees and the total periodic payment.
</para>
	
<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz8.4.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>
	  
<para>
  &kappname; will create a <link linkend="details.schedules">scheduled
  transaction</link> for your loan.  The Schedule page is where you enter the
  remaining details needed to create the schedule.
</para>
	
<para>
  First enter the Category to which loan interest will be assigned.  Then enter
  the account from which the loan payment will be made.
</para>
	
<para>
  The page also displays the first payment date for which the Schedule will be
  created.
</para>
	
<para>
  <screenshot>
            <mediaobject>
              <imageobject>
                <imagedata fileref="accwiz8.5.png" format="PNG" />
              </imageobject>

              <textobject>
                <phrase>Account Wizard</phrase>
              </textobject>
            </mediaobject>
  </screenshot>
</para>

<para>
  Optionally, &kappname; can create a transaction representing what was received
  or paid when the loan was created.
</para>
	
<para>
  If you borrowed or lent cash select the account from which or to which the
  loan amount was paid.
</para>
	
<para>
  If you borrowed money to purchase a car you can select or create an Asset
  account to help you track the value of the new car.
</para>
	
<para>
  If you re-financed an existing Loan check the "Refinance existing loan"
  checkbox, select the Loan account and &kappname; will create a transfer
  transaction paying off the existing loan.
</para>
	
<para>
  If you don't want to create the payout transaction, check the "Do not create
  transaction" checkbox.
</para>
</sect2>

<sect2 id="details.accounts.create.parent">
<title>Parent Account</title>

<para>
  <screenshot>
	<screeninfo>Parent Account</screeninfo>
	<mediaobject>
	  <imageobject>
            <imagedata fileref="accwiz10.png" format="PNG" />
	  </imageobject>
	  <textobject>
	    <phrase>Account Wizard</phrase>
	  </textobject>
	</mediaobject>
  </screenshot>
</para>

<para>
  This is the penultimate step in creating a new account. A tree of accounts is
  displayed. The tree will be of your Asset or Liability accounts, depending on
  the type of account that is being created.
</para>

<para>
  Select the account you wish contain the new account.  If you do not select a
  parent account, the new account will be created at the top level.
</para>

<para>
  The Parent Account page is not currently shown for Loans because they cannot
  be created as sub-accounts.  Also, Investment accounts cannot contain other
  accounts so they are not shown in the tree.
</para>
</sect2>

<sect2>
<title>Review and save the account details</title>

<para>
  <screenshot>
          <screeninfo>Review</screeninfo>
          <mediaobject>
            <imageobject>
              <imagedata fileref="accwiz9.png" format="PNG" />
            </imageobject>
            <textobject>
              <phrase>Account Wizard</phrase>
            </textobject>
          </mediaobject>
  </screenshot>
</para>

<para>
  This is the final step in creating a new account. A summary of the information
  entered is displayed. Review it, and if everything is OK press the Finish
  button. Otherwise, either press the <guibutton>Back</guibutton> button to make
  corrections or the Cancel button to abandon creating a new account.
</para>

<para>
  NOTE: The Type and Currency cannot at present be changed after the account is created.
</para>
</sect2>
</sect1>

<sect1 id="details.accounts.viewing">
<title>Opening / viewing accounts</title>

<para>
  To open an account in the Ledger view you can either click on the link to the
  account from the Home view, or click on the <guiicon><inlinemediaobject>
  <imageobject> <imagedata fileref="ledgers_view.png" /> </imageobject>
  </inlinemediaobject>Ledgers</guiicon> icon in the view selector and select the
  account in the drop down box at the top of the view. Alternatively, in the
  <guiicon>Account</guiicon> view, either double-click the account entry or
  right click and select <guimenuitem>Open ledger</guimenuitem>.
</para>
</sect1>

<sect1 id="details.accounts.edit">
<title id="details.accounts.edit.title">Editing Account Information</title>

<para>
  To edit a particular account, right-click that account and choose
  <guimenuitem>Edit account...</guimenuitem>. A details window will pop-up.
  This window allows you to change the name and start date of the account,
  associated banking institution, and the parent account. Changing the parent
  account is also possible in the main Accounts screen, by dragging the account
  and dropping it on a different parent account. In this window, you can also
  create a new banking institution and associate the account with that
  institution.
</para>

<para>
  <screenshot>
        <screeninfo>Edit an account</screeninfo>

        <mediaobject>
          <imageobject>
            <imagedata fileref="account_edit.png" format="PNG" />
          </imageobject>

          <textobject>
            <phrase>Edit account information</phrase>
          </textobject>
        </mediaobject>
  </screenshot>
</para>
</sect1>

<sect1 id="details.accounts.delete">
<title>Deleting accounts</title>

<para>
  To delete an account, first remove all the transactions from that account in
  the ledger. Next, find the account in the accounts view and after right
  clicking on the entry to show the popup menu select <guimenuitem>Delete
  account...</guimenuitem> from the popup menu.
</para>

<para>
  If you are unable to delete an account which looks like it has no transactions
  in it, check your filter. See <menuchoice> <guimenu>Settings</guimenu>
  <guimenuitem>Configure KMyMoney</guimenuitem>
  <guimenuitem>General</guimenuitem> <guimenuitem>Filter</guimenuitem>
  </menuchoice>. Clear all filters. Set the start date to 1.1.1900 or so.
</para>

<para>
  There may be transactions in your ledger that are not shown, for example, if
  you have inadvertently typed in the wrong year when making an entry so that an
  entry remains outside the opening date of &kappname;. This appears beneath the
  ledger page as remaining funds.
</para>
</sect1>
</chapter>