Git commit cca51a7f15f8cf014488262b9070df08ce8b70fc by Jack Ostroff. Committed on 19/11/2023 at 19:16. Pushed by ostroffjh into branch 'Handbook-5.2'.
budgets and loand M +14 -1 README-CONTRIBUTORS M +215 -212 doc/details-budgets.docbook M +132 -108 doc/details-loans.docbook https://invent.kde.org/office/kmymoney/-/commit/cca51a7f15f8cf014488262b9070df08ce8b70fc diff --git a/README-CONTRIBUTORS b/README-CONTRIBUTORS index 43e4fe96d..e8ff7d2fe 100644 --- a/README-CONTRIBUTORS +++ b/README-CONTRIBUTORS @@ -80,10 +80,13 @@ This is in the order pulled in from index.docbook, with brief note on state of u <!ENTITY details-loans SYSTEM "details-loans.docbook"> + <!ENTITY details-budgets SYSTEM "details-budgets.docbook"> + prelim update complete, need to add screenshots <!ENTITY details-forecast SYSTEM "details-forecast.docbook"> - + prelim update begun + <!ENTITY details-settings SYSTEM "details-settings.docbook"> <!ENTITY details-search SYSTEM "details-search.docbook"> @@ -312,5 +315,15 @@ elsewhere. - In report configuration dialog, if the report has not been run (select configure from the reports list) and you close, do not actually run the report. +- In the Budgets View, the list of categories on the right does not allow resizing + columns. In addition, with all columns displayed, the Name column is so narrow you + do not even see the first letters of the name, only the income or expense icon. + +- In the Budgets View, should the list on the right be called the Accounts List or + the Categories List? The doc does mention that categories are accounts, but given + this list is restricted to categories only, ....? +- In the Budgets View, the three sections on the right cannot be resized, although it is + possible to adjust the division between the right and left sections. +- \ No newline at end of file diff --git a/doc/details-budgets.docbook b/doc/details-budgets.docbook index 9c4d96ac9..7bce5bcbd 100644 --- a/doc/details-budgets.docbook +++ b/doc/details-budgets.docbook @@ -5,14 +5,13 @@ <author> &Colin.Wright; &Colin.Wright.mail; </author> <author> &Jack.H.Ostroff; &Jack.H.Ostroff.mail; </author> </authorgroup> - <date>2011-06-29</date> - <releaseinfo>4.6</releaseinfo> + <date>2023-11-20</date> + <releaseinfo>5.2</releaseinfo> </chapterinfo> <title>Budgets</title> -<sect1 id="details.budgets.define"> -<title>What is a budget?</title> +<sect1 id="details.budgets.define"><title>What is a budget?</title> <para> A budget is a categorized list of expected income and expenses for a period. @@ -40,47 +39,46 @@ <varlistentry> <term>Individual</term> - <listitem><para>Specify separate values for each month.</para> + <listitem> + <para>Specify separate values for each month.</para> <para>This is used for income and expenses spread irregularly through the - year.</para></listitem> + year.</para> + </listitem> </varlistentry> </variablelist> <para> - &kmymoney; provides a number of reports which compare actual income - and expenses against the entered Budgets. These are described in - more detail in - <link linkend="budget.details.reports">another section</link>. + &kmymoney; provides a number of reports which compare actual income and expenses + against the entered Budgets. These are described in more detail in <link + linkend="budget.details.reports">another section</link>. </para> </sect1> -<sect1 id="details.budgets.create" > -<title>Your budgets</title> +<sect1 id="details.budgets.create" ><title>Your budgets</title> <para> - You can access your budgets by clicking the appropriate icon in the navigation - pane at the left hand side of your &kmymoney; window. + You can access your budgets in the <guilabel>Budgets View</guilabel>, which you can + display by clicking the appropriate icon in the navigation pane at the left hand + side of your &kmymoney; window. </para> <para> - There are two major sections to the budget window. These are - described in more detail below. On the left, the main section - displays the list of budgets you have created. Above that are - buttons for creating, renaming, and deleting budgets. On the right, - there are three sections. At the top is the Accounts List. At the - bottom is a display of the amounts assigned to the budget for the - category selected in the Accounts List above. Between those two - areas are some additional controls for managing the budget. + There are two major sections to the Budgets View. These are described in more + detail below. On the left, the main section displays the list of budgets you have + created. Above that are buttons for creating, renaming, and deleting budgets. On + the right, there are three sections. At the top is the Accounts List. <!-- FIXME: + should this really be Categoreis List? --> At the bottom is a display of the + amounts assigned to the budget for the category selected in the Accounts List + above. Between those two areas are some additional controls for managing the + budget. </para> -<sect2> -<title>Viewing, creating, renaming, and deleting budgets</title> +<sect2><title>Viewing, creating, renaming, and deleting budgets</title> <para> - This section of the Budgets window displays the list of Budgets - contained in the current &kmymoney; file. If no Budget has yet been - created the list will be empty. The list of Budgets has two - columns: + The left section of the Budgets View displays the list of Budgets contained in the + current &kmymoney; file. If no Budget has yet been created the list will be empty. + The list of Budgets has two columns: </para> <variablelist> @@ -94,19 +92,21 @@ <varlistentry> <term>Year</term> <listitem> - <para>Fiscal year of the Budget. Note that the starting month - and day of the fiscal year can be specified in - the <link linkend="details.settings.general.global">Configure - &kmymoney; dialog.</link></para> + <para> + Fiscal year of the Budget. Note that the starting month and day of the + fiscal year can be specified in the <link + linkend="details.settings.general.global">Configure &kmymoney; dialog.</link> + To change the fiscal year of a Budget, double click on the year. + </para> </listitem> </varlistentry> </variablelist> <para> - Values from the selected Budget are displayed to the right. To select a - different Budget you can click on the Budget in the list. Alternatively, when + Values from the selected Budget are displayed to the right. To select a different + Budget you can click on the Budget in the list on the left. Alternatively, when the list has focus, you can select a different Budget using the &Up; and &Down; - keys. If you have made changes to a Budget and then select a different budget + keys. If you have made changes to a Budget and then select a different budget, &kmymoney; will ask you whether you want to save or discard the changes. </para> @@ -119,9 +119,8 @@ <term>New</term> <listitem> <para> - Create a new, empty budget. The default name of a new budget - is "Budget <year>" where <year> is the current - fiscal year. + Create a new, empty budget. The default name of a new budget is "Budget + <year>" where <year> is the current fiscal year. </para> </listitem> </varlistentry> @@ -131,8 +130,10 @@ <listitem> <para>Edit the name of the selected Budget.</para> - <para>You can also edit the name of a Budget by double-clicking - on the name of a Budget in the list.</para> + <para> + You can also edit the name of a Budget by double-clicking on the name of a + Budget in the list. + </para> </listitem> </varlistentry> @@ -142,29 +143,11 @@ <para>Delete the selected Budget.</para> </listitem> </varlistentry> - -<!-- buttons moved in the UI - they are now described below. Will remove - from here after this chapter has been reviewed. - <varlistentry> - <term>Revert</term> - <listitem> - <para>Reverts the selected Budget to its last stored state.</para> - </listitem> - </varlistentry> - - <varlistentry> - <term>Save</term> - <listitem> - <para>Accepts any unsaved changes to the selected Budget and - stores them.</para> - </listitem> - </varlistentry> - --> </variablelist> <para> - Additional options are available on a menu accessed by right-clicking on a - Budget. + Additional options are available on the <guilabel>Budget Options</guilabel> context + menu accessed by right-clicking on a Budget. </para> <variablelist> @@ -182,14 +165,6 @@ </listitem> </varlistentry> - <varlistentry> - <term>Change budget year</term> - <listitem> - <para>Displays a window with a list of years to select a - different fiscal year for the budget.</para> - </listitem> - </varlistentry> - <varlistentry> <term>Delete budget</term> <listitem> @@ -200,19 +175,20 @@ <varlistentry> <term>Copy budget</term> <listitem> - <para>Creates a copy of the selected Budget. The new Budget has the name - "Copy of <budget>", where <budget> is the name of the copied - Budget.</para> + <para> + Creates a copy of the selected Budget. The new Budget has the name "Copy of + <budget>", where <budget> is the name of the copied Budget. + </para> </listitem> </varlistentry> <varlistentry> <term>Budget based on forecast</term> <listitem> - <para>Fills in budget amounts based on data from &kmymoney;'s - Forecast values. See the section on - <link linkend="details.forecast.define">Forecasts</link> for - more information. + <para> + Fills in budget amounts based on data from &kmymoney;'s Forecast values. See + the section on <link linkend="details.forecast.define">Forecasts</link> for + more information. </para> </listitem> </varlistentry> @@ -223,16 +199,25 @@ <title>Account List</title> <para> - The Accounts List displays the list of Income and Expense Categories. - (Remember, within &kmymoney;, categories are treated as a special type of - account.) As in other places in &kmymoney;, the list is organized in a tree - structure. The list can be expanded or collapsed to show or hide Subcategories - within a Category. The Accounts List has a number of columns: + The Accounts List displays the list of Income and Expense Categories. (Remember, + within &kmymoney;, categories are treated as a special type of account.) As in + other places in &kmymoney;, the list is organized in a tree structure. The list can + be expanded or collapsed to show or hide Subcategories within a Category. The + Accounts List has a number of columns: +</para> + +<para> + Aside from the Name column, all other columns may be shown or hidden by + right-clicking on any column header, and checking or unchecking the checkbox next + to the column name. For more details about the meaning of each column, see the + <link linkend="details.categories.view">Categories Veiw</link> section. Only the + columns specifically relevant to Budgets are listed below, but all Category columns + may be displayed. </para> <variablelist> <varlistentry> - <term>Account</term> + <term>Name</term> <listitem> <para>Account (Category) name</para> </listitem> @@ -245,167 +230,163 @@ </listitem> </varlistentry> -<!-- these seem to have been removed from the display. Remove from here - once this is confirmed by the programmers. - <varlistentry> - <term>Tax</term> - <listitem> - <para>Checked if a Category included in Tax Reports</para> - </listitem> - </varlistentry> - - <varlistentry> - <term>VAT</term> - <listitem> - <para>Checked if a Category marked as a VAT Category</para> - </listitem> - </varlistentry> ---> - <varlistentry> - <term>Total Balance</term> + <term>Balance</term> <listitem> - <para>Current balance of Account. This will be blank for Categories, unless the Category - is defined in a foreign currency. In this case, Total Balance will show the value for the - Category in its defined currency.</para> + <para> + Current balance of Account. This will be blank for Categories, unless the + Category is defined in a foreign currency. In this case, Balance will show + the value for the Category in its defined currency. + </para> </listitem> </varlistentry> <varlistentry> <term>Total Value</term> <listitem> - <para>Total yearly value in the Budget. If a Category has Subcategories - and the Category's list of Subcategories is collapsed the value displayed - is the sum of the values for the Category and all of its Subcategories. - If a Category is defined in a foreign currency, the Total Value will show - the value in the base currency.</para> + <para> + Total yearly value in the Budget. If a Category has Subcategories and the + Category's list of Subcategories is collapsed the value displayed is the sum + of the values for the Category and all of its Subcategories. If a Category + is defined in a foreign currency, the Total Value will show the value in the + base currency. + </para> </listitem> </varlistentry> </variablelist> -<!-- It would be nice to include the actual button icons here to confirm +<!-- FIXME: It would be nice to include the actual button icons here to confirm which buttons are referred to. --> <para> - Below the Accounts List are several controls. The <guibutton>Update</guibutton> - and <guibutton>Revert</guibutton> buttons are described further below. The collapse - and expand buttons collapse or expand the entire Accounts List. + Below the Accounts List are several controls. The <guibutton>Update</guibutton> and + <guibutton>Revert</guibutton> buttons are described further below. The + <guibutton>collapse</guibutton> and <guibutton>expand</guibutton> buttons collapse + or expand the entire Accounts List. </para> <para> - The Accounts List can be filtered in two ways. Checking the <guilabel>Hide - unused categories</guilabel> checkbox hides any Categories for which no value - has been assigned to the Category or any of its Subcategories. To - the right of this, is an unlabelled text box. Only categories which - include whatever is typed in this box are listed, but their parent - categories are also listed. + The Accounts List can be filtered in two ways. Checking the <guilabel>Hide unused + budget categories</guilabel> checkbox hides any Categories for which no value has + been assigned to the Category or any of its Subcategories in the selected budget. + To the right of this, is an unlabelled text box. Only categories which include + whatever is typed in this box are listed, but their parent categories are also + listed. </para> <para> - Note that changing either the <guilabel>Hide unused budget categories</guilabel> - or the filter value is likely to change the list of Categories display. - You may need to re-expand the list to see all the Categories that - should be displayed with the current settings. + Note that changing either the <guilabel>Hide unused budget categories</guilabel> or + the filter value is likely to change the list of Categories displayed. You may + need to re-expand the list to see all the Categories that should be displayed with + the current settings. </para> - </sect2> -<sect2> -<title>Assignments</title> +<sect2><title>Assignments</title> <para> - The Assignments area shows the values for the Category selected in - the Accounts List. + The Assignments area shows the values for the Category selected in the Accounts + List. </para> <variablelist> <varlistentry> <term>Account</term> <listitem> - <para>Displays the name of the selected Category. If the - Category is a Subcategory, its full name is displayed in the - Category:Subcategory format.</para> + <para> + The name of the selected Category. If the Category is a Subcategory, its + full name is displayed in the Category:Subcategory format. + </para> </listitem> </varlistentry> <varlistentry> <term>Total</term> <listitem> - <para>Displays the total yearly value assigned to the Category.</para> + <para>The total yearly value assigned to the Category.</para> </listitem> </varlistentry> <varlistentry> <term>Include subaccounts</term> <listitem> - <para>If this is checked, then Reports show actual income or - expenses in Subcategories belonging to the Category against - the Category instead of the Subcategory.</para> - - <para>If a Subcategory has a value defined in the Budget, then - the income and expenses are shown against the - Subcategory.</para> - - <para>If the Category selected in the Accounts List has its - Subcategories collapsed, although its Total Value will show the - sum of the Total Values for all its Subcategories, the amounts - in the Assignments area may still show 0, unless this box has - been checked or an amount has explicitly been assigned to the - Category.</para> - - <para>In general, for you will either check this box and assign - values to the Category and not to any of its Subcategories, or - not check the box, and assign values to the Subcategories but - not the Category. If any Subcategories have assigned amounts - when this box is checked, then those amounts are rolled up to - the Category.</para> + <para> + If this is checked, then Reports show actual income or expenses in + Subcategories belonging to the Category against the Category instead of the + Subcategory. + </para> + + <para> + If a Subcategory has a value defined in the Budget, then the income and + expenses are shown against the Subcategory. + </para> + + <para> + If the Category selected in the Accounts List has its Subcategories + collapsed, although its Total Value will show the sum of the Total Values for + all its Subcategories, the amounts in the Assignments area may still show 0, + unless this box has been checked or an amount has explicitly been assigned to + the Category. + </para> + + <para> + In general, you will either check this box and assign values to the Category + and not to any of its Subcategories, or not check the box, and assign values + to the Subcategories but not the Category. If any Subcategories have + assigned amounts when this box is checked, then those amounts are rolled up + to the Category. + </para> </listitem> </varlistentry> <varlistentry> <term>Clear</term> <listitem> - <para>The <guibutton>Clear</guibutton> button resets the budgeted - category value or values to zero.</para> + <para> + Clicking this button resets the budgeted category value or values to zero. + </para> </listitem> </varlistentry> <varlistentry> <term>Period</term> <listitem> - <para>The <guilabel>Period</guilabel> radio buttons allow you to - select the period for which the value applies</para> + <para> + This radio buttons allow you to select the period for which the value applies + </para> <variablelist> <varlistentry> <term>Monthly</term> <listitem> - <para>A single value is entered, specifying the amount per - month. This is the default setting.</para> + <para> + A single value is entered, specifying the amount per month. This is the + default setting. + </para> </listitem> </varlistentry> <varlistentry> <term>Yearly</term> <listitem> - <para>A single value is entered, specifying the amount per - year.</para> + <para>A single value is entered, specifying the amount per year.</para> </listitem> </varlistentry> <varlistentry> <term>Individual</term> <listitem> - <para>Values are specified for each Calendar month. This is used - where expense or income is spread irregularly through the - year.</para> + <para> + Values are specified for each Calendar month. This is used where + expense or income is spread irregularly through the year. + </para> </listitem> </varlistentry> </variablelist> <para> - If a value is or values are already specified and the Period is changed - &kmymoney; will ask whether to use the current total yearly value to - assign the new values. + If a value is or values are already specified and the Period is changed, + &kmymoney; will ask whether to use the current total yearly value to assign + the new values. </para> </listitem> </varlistentry> @@ -415,30 +396,32 @@ <sect2> <title>Update and Revert</title> +<!-- FIXME: confirm there reslly is a Save button. I don't see one, but it might not + appear until you actually have a budget and hit Update. --> <para> For performance reasons, changes made to a Budget are not saved immediately. - Instead, they must first be stored using the <guibutton>Update</guibutton> - button and then permanently saved using the <guibutton>Save</guibutton> button. + Instead, they must first be stored using the <guibutton>Update</guibutton> button + and then permanently saved using the <guibutton>Save</guibutton> button. </para> <para> - When a Budget's values are first modified, the <guibutton>Update</guibutton> - and <guibutton>Revert</guibutton> buttons are enabled. Multiple changes can be - made to the Budget. Pressing <guibutton>Update</guibutton> will store the changes - and disable these buttons. + When a Budget's values are first modified, the <guibutton>Update</guibutton> and + <guibutton>Revert</guibutton> buttons are enabled. Multiple changes can be made to + the Budget. Pressing <guibutton>Update</guibutton> will store the changes and + disable these buttons. </para> <para> The <guibutton>Save</guibutton> button only saves changes that have been stored - using the <guibutton>Update</guibutton> button. Thus, if you have modified a Budget - but not yet stored the changes <guibutton>Save</guibutton> button will not affect - the modified Budget and the <guibutton>Update</guibutton> and <guibutton>Revert</guibutton> - buttons remain enabled. + using the <guibutton>Update</guibutton> button. Thus, if you have modified a + Budget but not yet stored the changes <guibutton>Save</guibutton> button will not + affect the modified Budget and the <guibutton>Update</guibutton> and + <guibutton>Revert</guibutton> buttons remain enabled. </para> <para> - Revert undoes any changes made to a Budget since the last Update and disables - the <guibutton>Update</guibutton> and <guibutton>Revert</guibutton> buttons. + Revert undoes any changes made to a Budget since the last Update and disables the + <guibutton>Update</guibutton> and <guibutton>Revert</guibutton> buttons. </para> <para> @@ -453,7 +436,7 @@ <para> &kmymoney; provides a number of reports to compare actual income and expenses - against a Budget. These are listed in Reports under "Budgeting". There are two + against a Budget. These are listed in Reports under "Budgeting". There are two types of Budget Reports: </para> @@ -464,52 +447,72 @@ <variablelist> <varlistentry> <term>Monthly Budget</term> - <listitem><para>Displays the monthly values from a Budget.</para> + <listitem> + <para>Displays the monthly values from a Budget.</para> </listitem></varlistentry> <varlistentry> <term>Yearly Budget</term> - <listitem><para>Displays the monthly values from a Budget, - with yearly total.</para> - </listitem></varlistentry> + <listitem> + <para> + Displays the monthly values from a Budget, with yearly total. + </para> + </listitem> + </varlistentry> </variablelist> </listitem> </varlistentry> <varlistentry> <term>Budget vs. Actual</term> - <listitem><para>These reports compare values from a Budget to - actual income and expenses. In each budget report you can find - the columns Budget, Actual, and Difference. Each report differs - in the period that is shown.</para> + <listitem> + <para> + These reports compare values from a Budget to actual income and expenses. In + each budget report you can find the columns Budget, Actual, and Difference. + Each report differs in the period that is shown. + </para> <variablelist> - <varlistentry> - <term>Budget vs. Actual This Year</term> - <listitem><para>From the beginning of the year until today</para> - </listitem></varlistentry> - <varlistentry> - <term>Budget vs. Actual This Year (YTM)</term> - <listitem><para>From the beginning of the year until the last - day of the previous month</para> - </listitem></varlistentry> - <varlistentry> - <term>Monthly Budgeted vs. Actual</term> - <listitem><para>From the beginning of the year until the last - day of the current month</para> - </listitem></varlistentry> - <varlistentry> - <term>Yearly Budgeted vs. Actual</term> - <listitem><para>From January 1st until December 31st</para> - </listitem></varlistentry> - <varlistentry> - <term>Yearly Budgeted vs. Actual (Graph)</term> - <listitem><para>Same as the previous report but it shows the - graph by default</para> - </listitem></varlistentry> + <varlistentry> + <term>Budget vs. Actual This Year</term> + <listitem> + <para>From the beginning of the year until today</para> + </listitem> + </varlistentry> + <varlistentry> + <term>Budget vs. Actual This Year (YTM)</term> + <listitem> + <para> + From the beginning of the year until the last day of the previous month + </para> + </listitem> + </varlistentry> + <varlistentry> + <term>Monthly Budgeted vs. Actual</term> + <listitem> + <para> + From the beginning of the year until the last day of the current month + </para> + </listitem> + </varlistentry> + <varlistentry> + <term>Yearly Budgeted vs. Actual</term> + <listitem> + <para>From January 1st until December 31st</para> + </listitem> + </varlistentry> + <varlistentry> + <term>Yearly Budgeted vs. Actual (Graph)</term> + <listitem> + <para> + Same as the previous report but it shows the graph by default + </para> + </listitem> + </varlistentry> </variablelist> - <para>These reports provide a base from which custom reports can - be created by changing the date range and Budget, among other - options. </para> + <para> + These reports provide a base from which custom reports can be created by + changing the date range and Budget, among other options. + </para> </listitem> </varlistentry> </variablelist> diff --git a/doc/details-loans.docbook b/doc/details-loans.docbook index 561e0e67d..3710e4f88 100644 --- a/doc/details-loans.docbook +++ b/doc/details-loans.docbook @@ -2,178 +2,202 @@ <chapter id="details.loans"> <chapterinfo> <authorgroup> - <author> &Darin.Strait; &Darin.Strait.mail; </author> + <author> &Darin.Strait; &Darin.Strait.mail; </author> + <author> &Jack.H.Ostroff; &Jack.H.Ostroff.mail; </author> </authorgroup> - <date>2010-07-25</date> - <releaseinfo>4.5</releaseinfo> + <date>2023-11-20</date> + <releaseinfo>5.2</releaseinfo> </chapterinfo> <title>Loans</title> -<sect1 id="details.loans.general"> -<title>Understanding Loans</title> +<sect1 id="details.loans.general"><title>Understanding Loans</title> + +<note> + <para> + I am looking for user feedback on whether to expand this section to discuss the + variation of principal and interest payments to attain a fixed recurring payment. + It is mentioned in the section on actually creating a loan in &kmymoney; but it + seems it should be mentioned earlier. + </para> +</note> <para> - This section provides an overview of how &kmymoney; handles loans. Loan - regulations and customs vary from locality to locality. For detailed - explanations of loans, as well as information on local regulations and - customs, please see other resources. + This section describes how &kmymoney; handles loans. Loan regulations and customs + vary from locality to locality. For detailed explanations of loans, as well as + information on local regulations and customs, please see other resources. </para> <para> A loan is an agreement under which a borrower receives money from a lender and - agrees to repay the money at some future date. &kmymoney; allows you to track - loans by which you, as borrower, borrow money from or, as lender, lend money - to someone else. Most individuals borrow more than they lend, so you will - generally be the borrower and a finance company will generally be the - lender. If you lend money to a family member or a friend, you can use - &kmymoney; to keep track of this loan as well. + agrees to repay the money at some future date. &kmymoney; allows you to track + loans by which you, as borrower, receive money from or, as lender, give money to + someone else. Most individuals borrow more than they lend, so you will generally + be the borrower and a finance company will generally be the lender. If you lend + money to a family member or a friend, you can use &kmymoney; to keep track of this + loan as well. </para> <para> - This guide will assume that you are borrowing from some sort of finance - company, but the topics discussed here apply equally well to loans that you - might make to a person. The main difference between borrowing and lending - money is that an expense category is used to keep track of interest when - borrowing money and an income category is used to keep track of interest when - lending money. + This guide will assume that you are borrowing from some sort of finance company, + but the topics discussed here apply equally well to loans that you might make to a + person. The main difference between borrowing and lending money is that an expense + category is used to keep track of interest when borrowing money and an income + category is used to keep track of interest when lending money. </para> -<formalpara><title>Loan Principal</title> +<sect2><title>Some relevant terms</title> +<formalpara><title>Principal</title> <para> - The amount that is lent out is called the <quote>loan amount</quote> or - <quote>principal</quote>. + The amount that is borrowed is called the <quote>principal</quote> or <quote>loan + amount</quote>. </para> </formalpara> <formalpara><title>Term</title> <para> - The period of a loan is called its <quote>term</quote> of the loan. At the end - of the term, the entirety of the principal will have been returned to the - borrower. Terms are generally expressed in weeks, months, or years. A term can - also be expressed by the number of payments. For example, a one year loan with - weekly repayments could be described as a one year loan or a loan with 52 - repayments. + The period or duration of a loan is called the <quote>term</quote> of the loan. At + the end of the term, the entirety of the principal will have been returned to the + lender. Terms are generally expressed in weeks, months, or years. A term can also + be expressed by the number of payments. For example, a one year loan with weekly + repayments could be described as a one year loan or a loan with 52 repayments. </para> </formalpara> <formalpara><title>Repayments</title> <para> - The repayment of the principal to the lender is generally not done as a lump - sum. Instead, a series of repayments are made, each representing a portion of - the principal. Such repayments are sometimes known as <quote>amortization - payments</quote> and in &kmymoney; <quote>Amortization</quote> is defined as - the act of paying off a loan in installments. + The repayment of the principal to the lender is generally not done as a lump sum. + Instead, a series of repayments are made, each representing a portion of the + principal. Such repayments are sometimes known as <quote>amortization + payments</quote> and in &kmymoney; <quote>Amortization</quote> is defined as the + act of paying off a loan in installments. </para> </formalpara> <formalpara><title>Payment Frequency</title> <para> - The frequency of installments is referred to as <quote>Payment - Frequency</quote> in &kmymoney;. Examples of period might be weekly, - bi-weekly, monthly, quarterly, or yearly. In the US, periodic payments are - most commonly made every month, therefore the loan's period is one month. + The frequency of installments is referred to as <quote>Payment Frequency</quote>. + Examples of this might be weekly, bi-weekly, monthly, quarterly, or yearly. This + is also sometimes referred to as the payment period. In the US, periodic payments + are most commonly made every month, therefore the loan's period is one month. </para> </formalpara> <formalpara><title>Interest Rate</title> <para> - For the privilege of being able to use the money, the borrower will pay the - lender a fee called the <quote>interest</quote>, normally expressed as a - percentage of the amount of the principal over a defined period. Interest - rates can be fixed, where the interest rate does not change over the lifetime - of the loan, or variable, where the interest rate can change over - time. Typically, interest payments are included with each periodic repayment. + For the privilege of being able to use the money, the borrower will pay the lender + a fee called the <quote>interest</quote>, normally expressed as a percentage of the + amount of the principal over a defined period. Interest rates can be fixed, where + the interest rate does not change over the lifetime of the loan, or variable, where + the interest rate can change over time. Typically, interest payments are included + with each periodic repayment. </para> </formalpara> <formalpara><title>Periodic Repayments</title> <para> - Since these repayments are generally made on some sort of scheduled basis, - such as weekly, monthly, quarterly, or yearly, they are referred to as - <quote>periodic repayments</quote>. The sum of all periodic repayments plus - the final repayment will add up to the loan principal plus the interest. + Since repayments are generally made on some sort of scheduled basis, such as + weekly, monthly, quarterly, or yearly, they are referred to as <quote>periodic + repayments</quote>. The sum of all periodic repayments plus the final repayment + will add up to the loan principal plus the interest. </para> </formalpara> <formalpara><title>Fees</title> <para> - There may be other fees besides interest that are required to be paid with - every installment. These are called <quote>recurring fees</quote>. Examples of - recurring fees include (but are not necessarily limited to): + There may be other fees besides interest that are required to be paid, possibly + with every installment. These are called <quote>recurring fees</quote>. Examples + of recurring fees include (but are not necessarily limited to): -<!--would prefer itemized list not in para, but formalpara requires para--> -<itemizedlist> - <listitem> - <para> - <quote>Impound</quote> or <quote>escrow</quote> account - payments. (Payments of this sort are commonly used to hold funds to pay - annual or bi-annual property taxes.) - </para> - </listitem> + <!--would prefer itemized list not in para, but formalpara requires para--> + <itemizedlist> + <listitem> + <para> + <quote>Impound</quote> or <quote>escrow</quote> account payments. Payments + of this sort are commonly used to hold funds to pay annual or bi-annual + property taxes. + </para> + </listitem> - <listitem><para>Mortgage insurance</para></listitem> + <listitem><para>Mortgage insurance</para></listitem> - <listitem><para>Disability insurance</para></listitem> + <listitem><para>Disability insurance</para></listitem> - <listitem><para>Loan account maintenance fees</para></listitem> -</itemizedlist> + <listitem><para>Loan account maintenance fees</para></listitem> + </itemizedlist> </para> </formalpara> +</sect2> -<formalpara><title>Summary</title> +<sect2><title>Summary</title> <para> - In summary, the borrower receives a lump sum from the lender at the start of - the loan. The borrower makes a periodic payment to the lender. The periodic - payment is the sum of the principal payment (which is used to pay down the - balance of the loan) plus the interest payment (which rewards the lender for - allowing the use of the money by the borrower) plus any recurring fees (which - cover any incidentals.) At the end of the loan, the borrower has paid back the - entire principal. + In summary, the borrower receives a lump sum from the lender at the start of the + loan. The borrower makes a periodic payment to the lender. The amount of the + periodic payment is the sum of the principal payment (which is used to pay down the + balance or remaining principal of the loan,) the interest payment (which rewards + the lender for allowing the use of the money by the borrower,) plus any recurring + fees (which cover any incidentals.) At the end of the loan, the borrower has paid + back the entire principal. </para> -</formalpara> +</sect2> </sect1> <sect1 id="details.loans.example"> <title>Example</title> <para> - For an example, you might borrow $25,000.00 for a new auto and agree to pay - the bank one payment each month for 60 months. The interest rate on the loan - might be 5.5%. + For an example, you might borrow $25,000.00 for a new automobile and agree to pay + the bank one payment each month for 60 months. The interest rate on the loan might + be 5.5% per year. </para> <para> - In this scenario, the loan amount is $25,000.00. The term of the loan is 60 - months or 5 years. The term of the loan could also be described as 60 - payments since there will be one payment per month for 5 years. The repayment - frequency is one month since periodic repayments will be made once a - month. The periodic repayment, which is calculated by &kmymoney;, would be - $477.53. + In this scenario, the loan amount is $25,000.00. The term of the loan is 60 months + or 5 years. The term of the loan could also be described as 60 payments since + there will be one payment per month for 5 years. The repayment frequency is one + month since periodic repayments will be made once a month. The periodic repayment, + which is calculated by &kmymoney;, would be $477.53. </para> <para> A <quote>loan schedule</quote> is a chart or table that shows the date that a - repayment should be made and the amount of each periodic repayment. Often, - these schedules break the periodic payment down into its constituent parts: - the principal repayment, the interest payment, and the recurring fees payment. + repayment should be made and the amount of each periodic repayment. Often, these + schedules break the periodic payment down into its constituent parts: the principal + repayment, the interest payment, and the recurring fees payment. </para> </sect1> <sect1 id="details.loans.creation"> <title>Creating a New Loan</title> +<!-- FIXME: this section should really be expanded with screenshots of the new loan + wizard and more detailed explanation of the various entry fields. In + particular, it needs an explanation of how fixed payments are calculated by + adjusting the amount of principal and interest of each payment, sometimes + resulting in a final payment different from the others. --> +<para> + In &kmymoney;, a loan is a type of account. Therefore, to create a new loan, you + begin by selecting the <menuchoice><guimenu>Account</guimenu><guimenuitem>New + Account</guimenuitem></menuchoice> menu item. Continue by answering the questions + that the wizard poses to you. +</para> + +<note> <para> - In &kmymoney;, a loan is a type of account. Therefore, to create a new loan, - you begin by selecting the <menuchoice><guimenu>Account</guimenu><guimenuitem>New - Account</guimenuitem></menuchoice> menu item. Continue by answering the questions that - the wizard poses to you. + The <guilabel>New Account Setup</guilabel> wizard not only sets up a Loan Account, + but also creates a <guilabel>Scheduled Transaction</guilabel> for the periodic + payments. If you try to edit either the Loan Account or the associated Scheduled + Transaction, you will be presented with the <guilabel>Edit Loan Account + Wizard</guilabel>. This allows you to adjust many of the details of the loans, but + not all. Unfortunately, some aspects of the Loan Account cannot currently be + changed, such as the account's parent account. </para> +</note> <para> - Optionally, a loan can be associated with a particular institution. If you are - borrowing from a mortgage company or a car loan company, you could create an - institution entry that describes this firm and associate the institution with - your loan. If you are borrowing from your Uncle Ted, there is no requirement + Optionally, as with any other account, a loan can be associated with a particular + institution. If you are borrowing from a mortgage company or a car loan company, + you could create an institution that describes this firm and associate your loan + with the institution. If you are borrowing from your Uncle Ted, there is no need to set up an institution. </para> </sect1> @@ -182,16 +206,14 @@ <title>Making Extra Principle Repayments On Loans</title> <para> - If you would like to make an extra principal repayment, you can do so. - Simply <link linkend="details.ledger.transactions">enter a transaction</link> - using the ledger. This extra repayment of principal will be taken into - account for the interest calculation that happens for the next periodic - payment. + If you would like to make an extra principal repayment, you can do so. Simply + <link linkend="details.ledger.transactions">enter a transaction</link> using the + ledger. This extra repayment of principal will be taken into account for the + interest calculation that happens for the next periodic payment. </para> <para> - Examples of extra principal payments include (but are not necessarily limited - to): + Examples of extra principal payments include (but are not necessarily limited to): </para> <itemizedlist> @@ -199,7 +221,7 @@ <listitem> <para> - Doubling the periodic principal repayment for every period. (The principal + Doubling the periodic principal repayment for every period. (The principal repayment can be found for any particular period by referring to the loan schedule.) </para> @@ -213,12 +235,14 @@ </listitem> </itemizedlist> -<note><para> - If you are doubling the principal repaid with every periodic payment, - you will need to recalculate the loan schedule for each installment. This will - allow there to be an accurate value for the required principal repayment with - each installment. -</para></note> +<note> + <para> + If you are doubling the principal repaid with every periodic payment, you will + need to recalculate the loan schedule for each installment. This will allow + there to be an accurate value for the required principal repayment with each + installment. + </para> +</note> </sect1> </chapter>
