Transaction with 3 Accounts

The current design of the WangTool.com Personal Finance Assistant (PFA) is, that each transaction will involve 2 Accounts, and the system will determine the accounting's debit or credit respectively. This is to simplify the system so that non-accounting background users are able to use it. However, there might be some cases where 3 accounts involve, and how should this to be recorded?

For example, you pay TM bill with credit card, let said RM 150, where, RM 66 is for streamyx, and RM 84 is for Phone landline service. Thus, in accounting, the records are:

Account             Type        Amount
CreditCard#2        Liability   RM 150  (Credit)
Streamyx Expenses   Expenses    RM  66  (Debit)
Phone Expenses      Expenses    RM  84  (Debit)

The current WangTool.com Personal Finance Assistant (PFA) can not create this situation. In standard accounting system, it is normally created inside a batch, with the credit or debit of account decided by user (finance staff).

To solve this issue, there are several ways can be used:

Separate Transaction to 2 Transactions

No. Account         Amount  ToAccount
1   CreditCard#2    RM 66   Streamyx Expenses
2   CreditCard#2    RM 84   Phone Expenses

The cons of this way is, there will be 2 transactions created for CreditCard#2. Thus when you list out transaction of CreditCard#2, you will see 2 entries, eg:

Date    Description Amount  Balance (let said previous balance=10)
10Jun08 TM Bill     RM 66   RM 76
10Jun08 TM Bill     RM 84   RM 160

Debit the Amount into one of the account

Debit the Amount into one of the account (eg: Phone Expenses), and them credit them out into the other account (ie: Streamyx Expenses), 2 transactions will be created.

No. Account         Amount  ToAccount
1   CreditCard#2    RM 150  Phone Expenses
2   Phone Expenses  RM 66   Streamyx Expenses

The cons of this way is, there will be 2 transactions created for Phone Expenses. One Increase the amount, Second decrease it. eg:

Date    Description Amount  Balance (let said previous balance=10)
10Jun08 TM Bill     RM 150  RM 160
10Jun08 TM Bill     RM -66  RM  94

Debit the amount into one temporary account

Debit the amount into one temporary account (split pool, type='A'sset or 'L'iability), and them credit them out into respective accounts. 3 transactions will be created, eg:

No. Account             Amount  ToAccount
1   CreditCard#2        RM 150  TM Bill Split Account
2   Streamyx Expenses   RM  66  TM Bill Split Account
3   Phone Expenses      RM  84  TM Bill Split Account

The cons of this way is,

• One Temporary account need to be created (split pool).
• 3 transactions need to be created.

Future Enhancements

WangTool welcome idea that can help in this case:

• able to record transaction with multiple accounts, and
• users require no/little knowledge about accounting.