Money 2003 Transaction
Q: I am not even sure where to start on this one: I refinanced an auto loan with the new loan going to a new bank. The new loan was for more than the old loan. The loan is for x dollars, they paid bank#1 y dollars, and transferred the overage to my savings account for z dollars. Any ideas on how to do the transaction in Money 2003?
A: Create a new loan account that matches the new loan and schedule its payment. Create a split transaction in your savings account: $xxx.yy Other Income:Loan Principal Received (or similar, set this category to not show up on tax reports) with Memo: principal received from [new loan acct name], $aaa.bb Principal Transfer:[old loan acct], $nnn.mm [expense]:[whatever] for any costs deducted. This transaction should net to the amount deposited in your savings account. (Chris Cowles has a method to create the principal as a transfer from the new loan account rather than making it appear in some income category separate from the new loan account. This technique is outline in the mortgage refi FAQ, reference to which has been made in several recent postings. I think it's more trouble than it's worth, but YMMV and it is more precise.) Go to [old loan acct] and enter an account adjustment transaction to set the balance to $0.00. This amount should be pennies. Close the account. Delete the old scheduled loan payment.
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