I have not done this in gnucash, but here are some comments.
I don't think gnucash existed yet when I last had a mortgage. Still using pen and ink on paper.
1. The escrow account is an asset, just like a bank account. 2. Your mortgage payment does the following: debit Escrow, increasing this asset debit interest expense, increasing this expense debit loan principal liability, decreasing this liability credit cash, decreasing this asset
Correct
3. When taxes or insurance are paid from the escrow account, this happens: debit the tax or insurance expense, increasing this expense credit the escrow account, decreasing this assett the equality of the grave.
Perhaps, because maybe different these days. Back then these did not appear except on the ANNUAL escrow account statement which would show all payments into and from the escrow account. So the payments (tax payments, insurance payment, etc.) would be entered then when data available (was able to enter the monthly "in" amount as that was known). The annual escrow statement would also give the next year calculated monthly escrow amount necessary to keep the escrow balance positive throughout the entire year (a "cash flow" issue). .
Michael D Novack _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
