I am trying to properly set up some internal funds in a double-entry context for personal finances.
For example, I have a Home Improvement fund to which some variable amount of money may be added every month. That money typically sits in a savings account with a particular bank, and when I receive a paycheck I designate part of it for the Home Improvement fund and transfer it from my checking account to a savings account subaccount. (There are similar funds for other purposes, so my transfer is generally a split to multiple subaccounts.)
When I spend money for home improvement, it generally comes from a credit card, and that credit card will eventually get paid from my checking account.
I currently have the following setup in GnuCash:
Asset: Checking account Asset: Savings account Asset: Home Improvement fund subaccount Credit: Credit Card account Expense: Home Improvement expense
When I add paycheck money to my Home Improvement fund, I debit my checking account, and credit my Home Improvement fund subaccount. This corresponds to a bank transfer from checking to savings.
When I spend Home Improvement money, I debit my Credit Card account and credit my Home Improvement expense. I will eventually pay the Credit Card account from my checking account, and for the portion pertaining to home improvement, I'll have to transfer money back from my Home Improvement fund subaccount to my checking account.
My numbers will be correct with this system, but it gives me no automatic way to track how much I have spent from my Home Improvement fund. It will be the sum of the Home Improvement expenses since my last debit from the Home Improvement fund, but I will be manually adding those expenses, which is error prone if there are a large number of them. I can't create a split transaction that simultaneously debits the Home Improvement fund subaccount, credits the checking account, debits the Credit Card account, and credits the Home Improvement expense, because the two parts of that transaction are not directly related and happen at different times.
How can I set up and use my accounts to properly track my Home Improvement fund money?