Preventing large non-recurring expenses from breaking reports
After many years of saving money, I recently bought a new car cash (not from a loan). This expense now bloats all related graphs and reports and make it hard to track income VS expense. What's the best way to handle such expenses? One solution I could think of but didn't find in Moneydance would be able to do an amortization of that purchase over many years.
Any thoughts?
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1 Posted by Ben Spencer on 10 Jul, 2016 04:31 PM
You certainly could amortize the purchase cost of the car over many years. This would be done by creating an asset account for the car and entering the purchase of the car as a transfer from the bank account to the asset account. Then enter a transaction in the asset account once a year selecting an expense category. One pleasing aspect of this is that you can look up the current value of your car every year and expense the difference as the car looses value. This way the resale value of your car still contributes to your net worth.
Ben Spencer
Infinite Kind Support
System closed this discussion on 09 Oct, 2016 04:40 PM.