{"action":"created","issue":{"url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/1803","repository_url":"https://api.github.com/repos/firefly-iii/firefly-iii","labels_url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/1803/labels{/name}","comments_url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/1803/comments","events_url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/1803/events","html_url":"https://github.com/firefly-iii/firefly-iii/issues/1803","id":372053391,"node_id":"MDU6SXNzdWUzNzIwNTMzOTE=","number":1803,"title":"Feature Request: Split Liability Account Payments","user":{"login":"spirituallyinsane","id":14048499,"node_id":"MDQ6VXNlcjE0MDQ4NDk5","avatar_url":"https://avatars2.githubusercontent.com/u/14048499?v=4","gravatar_id":"","url":"https://api.github.com/users/spirituallyinsane","html_url":"https://github.com/spirituallyinsane","followers_url":"https://api.github.com/users/spirituallyinsane/followers","following_url":"https://api.github.com/users/spirituallyinsane/following{/other_user}","gists_url":"https://api.github.com/users/spirituallyinsane/gists{/gist_id}","starred_url":"https://api.github.com/users/spirituallyinsane/starred{/owner}{/repo}","subscriptions_url":"https://api.github.com/users/spirituallyinsane/subscriptions","organizations_url":"https://api.github.com/users/spirituallyinsane/orgs","repos_url":"https://api.github.com/users/spirituallyinsane/repos","events_url":"https://api.github.com/users/spirituallyinsane/events{/privacy}","received_events_url":"https://api.github.com/users/spirituallyinsane/received_events","type":"User","site_admin":false},"labels":[],"state":"open","locked":false,"assignee":null,"assignees":[],"milestone":null,"comments":0,"created_at":"2018-10-19T17:46:40Z","updated_at":"2018-10-19T18:28:49Z","closed_at":null,"author_association":"NONE","body":"**Description**\r\nPlease describe your feature request:\r\n\r\nI would like to see a way to split liability account payments in a way that reduces the principal balance on the liability correctly, by applying the principal portion as a _Transfer_ to the loan account principal, and the interest as an expense to the bank or loan's _Expense_ account.\r\n\r\nCurrently, when I enter a single transfer transaction from my bank account to a liability account, the entire transfer applies to the balance.  I can do a category split, showing the portions of the payment that went to principal and interest, but both reduce the balance of the liability\r\n\r\n\r\n\r\n**Solution**\r\nNormally, when a fixed payment is made to a liability account, the single payment amount recorded on the source account is composed of a principal and an interest portion of the payment.  The principal portion reduces the amount of the loan, while the interest portion does not, and should be treated as an expense.\r\n\r\nAllowing loan payments to be split into principal (transfer) and interest (expense/withdrawal) portions would enable the correct reporting of liability account balances, with the details correctly recorded in a single split transaction.  This is how most double-entry bookkeeping applications seem to handle this type of transaction.\r\n\r\n**What are alternatives?**\r\nCurrent workaround is to make payments to a \"distribution account\", set up as a default asset account, then create two new transactions from that account, one transfer (principal) and one withdrawal (interest).  As long as the transactions balance, this keeps the net worth calculations correct (the distribution account should always have a zero balance)\r\n\r\nI could also discard the liability account entirely and use a credit card account to track the liability account, but this is a bit kludgy, as it miscategorizes a liability as a revolving-type credit account, and interest payments will have to be recorded as separate transaction.  It will work, though, keeping the net worth and categories correct.\r\n\r\n**Additional context**\r\nI recognize that, depending on how transactions are recorded in the database, this may prove difficult to do, but I haven't dug in too deeply to see if it might be a straightforward modification to the process."},"comment":{"url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/comments/431455870","html_url":"https://github.com/firefly-iii/firefly-iii/issues/1803#issuecomment-431455870","issue_url":"https://api.github.com/repos/firefly-iii/firefly-iii/issues/1803","id":431455870,"node_id":"MDEyOklzc3VlQ29tbWVudDQzMTQ1NTg3MA==","user":{"login":"JC5","id":5889984,"node_id":"MDQ6VXNlcjU4ODk5ODQ=","avatar_url":"https://avatars0.githubusercontent.com/u/5889984?v=4","gravatar_id":"","url":"https://api.github.com/users/JC5","html_url":"https://github.com/JC5","followers_url":"https://api.github.com/users/JC5/followers","following_url":"https://api.github.com/users/JC5/following{/other_user}","gists_url":"https://api.github.com/users/JC5/gists{/gist_id}","starred_url":"https://api.github.com/users/JC5/starred{/owner}{/repo}","subscriptions_url":"https://api.github.com/users/JC5/subscriptions","organizations_url":"https://api.github.com/users/JC5/orgs","repos_url":"https://api.github.com/users/JC5/repos","events_url":"https://api.github.com/users/JC5/events{/privacy}","received_events_url":"https://api.github.com/users/JC5/received_events","type":"User","site_admin":false},"created_at":"2018-10-19T18:28:49Z","updated_at":"2018-10-19T18:28:49Z","author_association":"MEMBER","body":"Technically speaking this is fairly simple. The database supports any type of split in any direction. \r\n\r\nWhat I am still trying to figure out is a way to present this so new users will understand it as well. I don't want to turn Firefly III into another GnuCash.\r\n\r\nFor example, I would like the \"transfer\" part and the \"expense\" part of your suggestion to carry a budget as well. However, in the current way of working, transfers cannot have a budget. \r\n\r\nShould I break that rule? If so, how do I explain the difference?\r\nOr perhaps add a new transaction type? If so, how do I make users see the difference?\r\n\r\nI haven't had the perfect idea yet. Until then, you'll have to think of a workaround."}}
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