Liability/loan account setup for a family loan (IOU) with zero interest and no term

I’ve loaned some money from my parents and expect to pay it back at some stage but there is no forced term or payments required. I looked at setting up a loan account so that it appears as a Liability but KMyMoney prompts for things such as interest rate, term, fees, etc. I just want to show a “simple IOU” type of loan. What is the best way to achieve this ?

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After mucking about with the loan setup, I just cancelled that process and noticed that I could create just a Liability account. Perfect for loaning money from family/friends :smiley:

It is not a Liability account, but an Asset account. It is a money receivable item, so it is an asset.

A loan payable is a liability. The borrower incurs the liability. The lender has the future receivable money as an asset. The account should be named to show that it is a future expected amount as opposed to being an amount currently on hand. KMYMoney allows you to put a future date on a deposit and that deposit is not show in balances for accounts before that date, so you could put the money in the account with a date of 2030 or whenever you expect to get paid back.

Another way to handle it without creating a special account, would be to create a Scheduled Transaction with the anticipated payback date going into the anticipated deposit account. That might even be the simplest way to handle the transaction.

@markhm What you state is absolutely correct, but @Gandalf needs to use a liability account! With a bit of background in German grammer

translates into “I’ve borrowed some money from my parents” :wink:

Yes, I see that now.
I stand corrected.