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Junior Member
Group: Forum Members
Last Login: 6/06/2007 7:56:14 PM
Posts: 0,
Visits: 0
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As an investment transaction I have set up a term deposit.
It is for a fixed term at a fixed rate. At the end of the term I am likely to roll it over i.e. the money stays where it is but the maturity date and possibly the rate may change. Alternatively I may withdraw all or part of the deposit.
It is not a 2nd bank account as such. In this case the entity is a bank but it could be any entity.
I would appreciate any suggestions on how best to set this up in MySF.
Thanks.
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MySF Administrator
Group: Administrators
Last Login: 29/01/2012 4:16:49 PM
Posts: 208,
Visits: 958
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A couple of ideas
1. Bank Account
You could handle it in a number of ways, one of them being as a bank account as you imply in your note. Bank accounts by default fall into a "Cash" Asset Class which is the correct treatment from an asset classification perspective. You would receipt the income using either Interest Receipt Type, or you could create a new Receipt Type called say Term Deposit Income. (This would display the income separately on the Cash Flow Report).
2. Financial Asset
A second way is to record it as a Financial Asset in an Asset Class of "Term Deposits". You would purchase 1 unit at $x. At the Maturity date you would sell the asset for the same amount as you purchased it for - therefore creating no capital gains. The income would be recorded as above in the Bank Account either with the Interest Receipt type or a new Receipt Type.
Hope this helps
Regards
MySF
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