Bug 310731 - KMyMoney does not allow use of Equity accounts (with "Show Equity Accounts" option checked)
Summary: KMyMoney does not allow use of Equity accounts (with "Show Equity Accounts" o...
Status: RESOLVED FIXED
Alias: None
Product: kmymoney
Classification: Applications
Component: general (show other bugs)
Version: 4.6.3
Platform: FreeBSD Ports FreeBSD
: NOR normal
Target Milestone: ---
Assignee: KMyMoney Devel Mailing List
URL:
Keywords:
Depends on:
Blocks:
 
Reported: 2012-11-26 19:24 UTC by David Naylor
Modified: 2020-10-02 20:46 UTC (History)
2 users (show)

See Also:
Latest Commit:
Version Fixed In: 4.8.0
Sentry Crash Report:


Attachments

Note You need to log in before you can comment on or make changes to this bug.
Description David Naylor 2012-11-26 19:24:48 UTC
With the option "Show Equity Accounts" option checked it is possible to see and create equity accounts in the "Accounts" view however those equity accounts do not appear in the "Ledgers" view and transactions cannot be moved to an equity account (as the equity account does not appear in the list shown).  

Motivation for using an equity account: reserves (such as for clothing expenditure) can be used to smooth the income and expenses statement for such items however the corresponding counter (double entry) account is of type equity.  

I would like KMyMoney to handle reserving automatically but currently I'll happily do it myself and use a liability account as the counter account however strickly it should be an equity account.

Reproducible: Always

Steps to Reproduce:
1. Enable "Show Equity Acccounts" option
2. Create an equity account in the "Accounts" view
3. Attempt to enter a transaction relating to the created equity account, or view the account in the "Ledger" view
Actual Results:  
The equity account is not visible from ledger and as a category

Expected Results:  
The equity account is visible from ledger and as a category
Comment 1 Jack 2012-11-26 19:57:11 UTC
I don't know if there is an issue with definition or usage, but within KMM, equity accounts serve only to contain stocks, bonds, mutual funds, and things that can be tracked like them, in terms of buying/selling shares at a stated value.  Transactions regarding such an equity are actually held in an investment account, not directly within the equity account.   Perhaps your use case is better discussed on the mailing list to determine the best way to handle it.
Comment 2 David Naylor 2012-12-01 07:16:11 UTC
Thanks for your quick responce.  I will approach the mailing list with my use case, however that will be done next year when I can give the list sufficient attention.  Thanks.
Comment 3 David Naylor 2014-03-05 15:54:11 UTC
Discussed on mailing list.  No movement on core issue, although sundry issue may be fixed.  Either way I am happy.
Comment 4 allan 2014-03-05 16:56:00 UTC
On 26/11/12 19:24, David Naylor wrote:
> https://bugs.kde.org/show_bug.cgi?id=310731
>
>              Bug ID: 310731
>            Severity: normal
>             Version: 4.6.3
>            Priority: NOR
>            Assignee: kmymoney-devel@kde.org
>             Summary: KMyMoney does not allow use of Equity accounts (with
>                      "Show Equity Accounts" option checked)
>      Classification: Unclassified
>                  OS: FreeBSD
>            Reporter: blackdragon@highveldmail.co.za
>            Hardware: FreeBSD Ports
>              Status: UNCONFIRMED
>           Component: general
>             Product: kmymoney4
>
> With the option "Show Equity Accounts" option checked it is possible to see and
> create equity accounts in the "Accounts" view however those equity accounts do
> not appear in the "Ledgers" view and transactions cannot be moved to an equity
> account (as the equity account does not appear in the list shown).
>
> Motivation for using an equity account: reserves (such as for clothing
> expenditure) can be used to smooth the income and expenses statement for such
> items however the corresponding counter (double entry) account is of type
> equity.
>
> I would like KMyMoney to handle reserving automatically but currently I'll
> happily do it myself and use a liability account as the counter account however
> strickly it should be an equity account.
>
> Reproducible: Always
>
> Steps to Reproduce:
> 1. Enable "Show Equity Acccounts" option
> 2. Create an equity account in the "Accounts" view
> 3. Attempt to enter a transaction relating to the created equity account, or
> view the account in the "Ledger" view
> Actual Results:
> The equity account is not visible from ledger and as a category
>
> Expected Results:
> The equity account is visible from ledger and as a category
>

There have been a few topics on the list regarding equity accounts, 
partly because the term is used to refer to investments.

However, in accountancy terms, and at least in KMM, there is a different 
use.
Here's a couple of extracts from the list which may help to throw some 
light.  I'm not suggesting you don't know what an equity account is, and 
you probably know far more than I, but within KMM....  Anyway, here are 
the extracts.

" Sept. 21, 2013, 10:29 a.m
<snip>

Equity accounts in KMM are hidden because it's advanced functionality 
and we try to hide the double-entry accounting as much as possible. Keep 
in mind that the equity accounts are not assets, or shares in a company, 
rather the net worth from opening balances in accounts.

They are hidden in normal mode, and should be hidden."

and

"These opening balances are exactly that, opening balances, and should 
not have a payee assigned.

That account is to balance the entry when you start using KMyMoney and 
you enter the opening balances for your asset and liability accounts. As 
per double-entry accounting, all transactions have to be balanced, and 
money can't just pop out of the blue.

eg. you start using KMM on Jan 1, but you already had a bank account by 
that date. You create the account and enter the balance on that date. To 
balance that transaction, a split is assigned to "Equity/Opening 
balances". No payees are involved.
"
Allan
Comment 5 Ralf Habacker 2020-10-02 20:46:27 UTC
(In reply to David Naylor from comment #0)
> With the option "Show Equity Accounts" option checked it is possible to see
> and create equity accounts in the "Accounts" view however those equity
> accounts do not appear in the "Ledgers" view and transactions cannot be
> moved to an equity account (as the equity account does not appear in the
> list shown).  

At least from version 4.8.0 on they are visible and usable as regular accounts.