Please add a category type "other"
Since Moneydance forces double-entry accounting, please add a category type “other” for transactions that deal with money coming from or going to a different source than income or expense (in accounting, that would be direct equity). Double-entry accounting assumes that the accounting structure is complete. The “accounts” (called multiple things in MD) needed should accommodate assets, liabilities, equity, income and expense. The one missing in Moneydance is equity for cash items outside of income and expense (cash received and cash distributed outside of the Moneydance environment). Not everyone puts their complete financial world in one Moneydance database. The accounting world accommodates subsidiary-type situations. There needn’t be a work-around to achieve something that appears to be quite common as needing a clearing category for cash in/out not tied to an income statement. Moneydance is financial software – please complete the accounting structure. Thank you.
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1 Posted by Stuart Beesley ... on 05 Oct, 2024 03:33 PM
Why not just create such an account or category yourself and then exclude it from the relevant reports... A lot of us do this to handle 'junk' tax one sides transactions for example... (like manually recording capital gains / losses for example)...
2 Posted by pjlonsford on 05 Oct, 2024 05:02 PM
I have done what you suggest (even though your example is income/expense
related and not balance sheet related with cash going in and out) and it is
a work-around that I have to manually keep up with by individual category.
I have created a parent category "Investment Clearing", but I still have to
remove the individual categories underneath the parent to remove them from
the report. It is just unnecessary monitoring and administrative
maintenance that I must do to keep my reports accurate when changes are
made.
I get the double-entry accounting requirement - I'm a CPA. What I don't
understand is the unavailability of the necessary category options to
fulfill the double-entry requirement accurately. I have searched this
discussion group and have found many instances of others having the same
issue and the response is as you have suggested. It can work, but it is a
work-around for a bookkeeping software that requires both debit and
credit.
Since the database has already been configured around category type
(income, expense), the most efficient update *may* be to add the category
type "other" to allow the database to handle "junk" transactions
efficiently in reporting. Reporting and find-and-replace could select all
of that type instead of picking each category. My Moneydance database holds
only my securities and real estate investments. Infrequent, but large
amounts of cash coming in and going out comes from and to an outside
source. I have many junk categories to report taxable investment
distributions, non-taxable distributions, rollover transactions to and from
IRAs, Roth-IRAs, and regular investments and savings held in non-bank
financial institutions.
It is just a suggestion.
System closed this discussion on 04 Jan, 2025 05:10 PM.