Can I make funds "disappear"?

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michael

28 Jul, 2020 09:42 PM

I have tracked my daughter's college savings account within my Moneydance file for many years. Now that she is grown and I transferred the assets at the financial institution to her, I want to remove the value from my Moneydance file. However, the only way I see to do that is to "Xfr" or "SellXfr" and book an expense equal to the value of the account, which throws my income and expense graphs and charts off.

I guess what I am asking is if there is a way to make money "disappear" from Moneydance?

  1. 1 Posted by dwg on 28 Jul, 2020 10:04 PM

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    I'm a fellow user.

    No it is not possible to just make money disappear.

    You can either take the approach you have outlined or you can try making the account inactive and remove it from the various displays to see if that meets your needs.

    To make an account inactive open its register then select the menu item Account --> Edit Account Info check the boxes Hide on Summary page & Inactive Account. You can remove an account from the side bar by right clicking on it and selecting Remove for Side Bar.

  2. 2 Posted by michael on 29 Jul, 2020 12:10 AM

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    Dang, I have a number of those accounts that I tracked over the years. I recall there was a way to it in Quicken when I used that program. Something like transferring money back to the same account would zero it out. It didn't make a whole lot of sense.

  3. 3 Posted by dwg on 29 Jul, 2020 02:33 AM

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    Yes Quicken can make money just disappear into thin air, it can also make money appear the same way.

    Moneydance is based on the principles of accounting and specifically double entry bookkeeping. It is just not valid or acceptable in accounting for money to be handled in such a way.

    If you try the way Quicken does it in Moneydance it will just not work, what Quicken allows for is a transfer source or destination to be the same account as the transaction is in.

  4. 4 Posted by michael on 29 Jul, 2020 03:07 AM

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    Make money appear and disappear...aka fractional reserve banking.

  5. 5 Posted by dantdavis on 29 Jul, 2020 05:33 AM

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    another user

    My methodology for making money disappear in MD is to create a category called like : MY DAUGHTERS MONEY and then throw all that stuff at the category.

    Voila. Follows moneydance rules and the money "disappears" into that category.

    That might be what you are already talking about, and it throws your charts off, but that's what I do.

    If you truly want it to disappear - make it not ever happen in your accounts (i.e. delete it all), but that usually leads to even more problems, especially if it's long term with money tentacles.

  6. 6 Posted by dwg on 29 Jul, 2020 06:16 AM

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    That is why I suggested marking the account as inactive. All transactions are still present but the balance is shown as 0 in many places, but you still have to exclude it from certain reports. The only real other way to do it is as you have done - create a specific category for the transfer of funds and to exclude it from reporting.

    Once Money is in a Moneydance data set it is in there.

  7. Support Staff 7 Posted by Ethan on 29 Jul, 2020 09:26 PM

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    Just to add some explanation to the above suggestions: The reason money can't 'disappear' in Moneydance is that it is based on double-entry bookkeeping, a foundational system of modern accounting. All transactions must have two accounts associated with it (or an account and a category): where the money is coming from, and where it is going to. In this closed system, there can't be money that comes out of one account and goes nowhere. That would indicate a serious problem with the accounting. Especially in the era before computers when people were doing this in ledger books, this would be one of the main ways to catch money 'disappearing' in a bad way.

    I believe in Quicken there was a way to make invalid transactions to allow things like this to happen, since we sometimes seem to encounter the mess they create when people try to import their data from that program. Those transactions are also logically inconsistent. Even if one could create a transaction where money came back into the same account, that should just put things back where you started. You're correct that those transactions don't make a whole lot of sense!

    Ethan
    Infinite Kind Support

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