--- Alias: ["Personal Accounting"] Tag: ["Admin", "Finances", "Computer", "IT", "App"] Date: 2021-08-19 DocType: "Confidential" Hierarchy: "Root2" TimeStamp: 2021-08-19 location: [51.514678599999996, -0.18378583926867909] CollapseMetaTable: Yes --- Parent:: [[Finances]] ---   ```button name Save type command action Save current file id Save ``` ^button-hLedgerSave   # hLedger   ```ad-abstract title: Summary collapse: open This note describes the workings of plain text accounting through hLedger ```   ```toc style: number ```   ---   ### Documentation   [Plain text Accounting](https://plaintextaccounting.org/) [hledger](https://hledger.org/create-a-journal.html) [Ledger manual](https://www.ledger-cli.org/3.0/doc/ledger3.html#index-account_002c-alias) [Ledger helpers](https://github.com/ledger/ledger/wiki/Entering-transactions-with-ledgerhelpers-GUI-apps) [Ledger help](https://github.com/ledger/ledger/wiki/Entering-data)   ---   ### hLedger   Plain Text Accounting is accessible through command-line clients like hledger. Installation is simple: ``` brew install hledger ``` Some extensions may be required for certain functionalities to work and will be documented accordingly.   #### Structure The structure of the tool and resulting file is rather simple. The tool offers two main functionalities: 1. **Import data** hLedger allows for direct links to your bank or manual entries into the ledger. 2. **Reports on aggregated data** A suite of reports is available to visualise financial data The underlying database is a (collection of) file(s) readable through classic text editors with a list of the transactions made during the period.   #### Initialisation At start of the year/period in any given file, a certain number of initialisations need to be made: 1. **Initialise top-level accounts** ``` account 'name of account' ``` 2. **Currencies used** ``` commodity 'layout + number format' ``` 2. **Opening balances** ``` 'Date' set initial 'account name' account balance 'account name'(+optional nesting -> :'sub-account') {+ 2 spaces min} 'amount' equity:opening balances ```   #### Transactions hLedger allows for three methods for entering transactions: 1. **Through command-line** This method is well-guided with hLedger: ``` hledger add -f 'journalname' ``` The function will then prompt the user for appropriate entries. 2. **Manually into the .journal file** Open the .journal file and manually enter transactions with the following format: ``` (date) 'transaction name' 'account 1' {2+ spaces} (amount) 'account 2' {2+ spaces} !(amount) ``` 3. **Import** ```ad-note title: Import from Note ~~~ hledger import -f 'journalname' 'filename' ~~~ ``` ```ad-note title: CSV Import hLedger requires a certain level of customisation to import .csv. Instructions can be found [here](https://hledger.org/import-csv.html) ``` 4. **Recurring transactions** [Recurring transactions](https://hledger.org/hledger.html#periodic-transactions) are declared as below: ``` ~ monthly (or other periodicity) (optional 'from') (account 1):(sub-account 1) {2+ spaces} (amount) (account 2):(sub-account 2) ```   #### Investments ```ad-info title: Documentation The documentation can be found [here](https://hledger.org/investments.html) ``` 1. **Adding an Investment** Using a strict and clear nomenclature, an initial investment is inputed manually using the following block: ``` (Investment date) Investment:(sub-account):(asset-account) (units) (internal stock mnemonic) equity:conversion -(units) (internal mnemonic) equity:conversion (monetary amount) funding account -(monetary amount) ``` 2. **Price file** A price file can be created separately to manage asset prices and actual transactions in separate docs. To this effect, both files are required to be in the same folder and the main journal carries the following command: ``` include (filename).prices ``` Prices are inputed as follows: ``` P (date) (asset1) (asset2)(conversion value) ``` 3. **Re-pricing Investment** Re-pricing happens through the price file by simply adding a 'P' command with a new date in the .prices file. 4. **Selling an investment** To respect the coherence of the Accounting Equation, sales will follow the same nomenclature as purchases, with an explicit declaration of realised p&l: ``` (Investment date) Investment:(sub-account):(asset-account) -(units) (internal stock mnemonic) equity:conversion (units) (internal mnemonic) equity:conversion -(monetary amount @ purchase) revenues:capital gain -(p&l) receiving account (monetary amount) ``` This flexibility enables to implement FIFO/LIFO as per prevailing fiscal rules.   #### Closing books In order to close books, revenues/expenses need to amount to 0 and only show Asset, Liability and Equity. The below is a growing mapping of revenues and expenses lines: ``` (Closing date) revenues:Salary (outstanding balance) = 0 revenues:investment income (outstanding balance) = 0 revenues:capital gains (outstanding balance) = 0 equity:retained earnings -(resulting amount) ``` ``` (Closing date) expenses (outstanding balance) = 0 equity:running costs -(resulting amount) ```   #### Reports ```ad-info title: Documentation Simple reports can be found [here](https://hledger.org/quickstart.html#run-reports) ``` **Income statement report** ``` hledger -f 'filename' is -Y (period argument) -3 (depth argument) -S (sorting by amount argument) -o (output file argument) ``` **Balance sheet report** ``` hledger -f 'filename' bs -Y (period argument) -V (optional price basis: end of year each year, local ccy; --value=end,(ccy) for forcing GBP/EUR) (optional --infer-value) -o (output file argument) ``` 'bs' can be replaced by 'bse' to show the Equity block. **ROI report** ``` hledger -f 'filename' roi --investment (investment account) -Y (period argument) --value=then,"(ccy)" --infer-market-price --pnl "unrealized" ``` **Arguments** `--no-elide`: explicitly print all values   #### Tools   #### Useful commands 1. stats: account stats (number of transactions, ccy, exchange rates, etc...) 2. print: transaction history 3. aregister: transaction history in a particular account 4. cashflow: summary of cashflows per asset account & ccy 5. balance: show account balances   #### Other commands ```ad-example title: Specific tasks [Error checking](https://hledger.org/checking-for-errors.html) ```   ### Tasks & Further steps   ```ad-question title: To explore - [!] Tax - [!] Financial forecasting ``` - [ ] Tax for Investments - [ ] Financial forecasting - [ ] Update Price file 🔁 every 3 months on the 1st Friday 📅 2021-10-03 - [x] Update Price file 🔁 every 3 months on the 1st Friday ✅ 2021-10-02