Bug 318606 - wrong accounting calculations
Summary: wrong accounting calculations
Status: RESOLVED NOT A BUG
Alias: None
Product: kmymoney
Classification: Applications
Component: general (show other bugs)
Version: 4.6.3
Platform: Other Microsoft Windows
: NOR major
Target Milestone: ---
Assignee: KMyMoney Devel Mailing List
URL:
Keywords:
Depends on:
Blocks:
 
Reported: 2013-04-19 18:41 UTC by tech
Modified: 2014-07-29 09:15 UTC (History)
2 users (show)

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Description tech 2013-04-19 18:41:59 UTC
Adds assets and expenses to come up with net profit.  Should subtract expenses from profits for this calculation.

Also adds Owners equity and owners draws to come up with final owners equity.
Should subtract draws from equity.  

.

Reproducible: Always




This is a wonderful program (and I have tried many others).  I love all the many features and how easy it is to use and customize.  I classified it as a major problem because if I can't trust the calculations then it doesn't matter how much I like it. 

Thank you for looking into this matter.
Comment 1 tech 2013-04-19 18:45:04 UTC
corrections/clarification to first line.....should subtract expenses from ASSETS to calculate profits.  (sorry)
Comment 2 Fernando Vilas 2013-04-20 01:18:02 UTC
In general, according to most accounting books and classes, 
assets - liabilities = net worth
and
income - expenses = net income (profit or loss).

I am unfamiliar with using assets - expense for something. Am I missing a useful metric that I should be using for something?

At first glance, the book value of my car less my coffee purchases does not seem to provide great insight.
Comment 3 Cristian Oneț 2013-08-29 13:05:26 UTC
As far as personal finances are concerned nobody complained about the calculations so far. As Fernando stated we don't add assets and expenses.

assets - liabilities = net worth
income - expenses = net income (profit or loss).

So I'm marking this as invalid.