Loan account

Hi.
I am in the process of setting up a loan account in Quickfile. The loan is an existing one. When putting in the opening balance of the account do I put in the total amount owing including interest or excluding the interest.

Hello @twistgrip

You would record the total amount of the loan (excluding interest) received into a liability code.
when you come to make a payment on the loan the transaction would be in two parts (the capital paid and the interest).

You would pay x amount off the overall loan to reduce the liability and you would pay x amount of interest recorded as an overhead.

You would repeat this process each month until you’ve repaid the loan (and the liability will be clear).

Please see the link below for more information.

Hi Steve.

So just to clarify. Because the loan was existing when I started using Quickfile I would put the opening balance down as what was owed at the date I started using the system excluding any interest owed. For example I borrowed £15000 and at the time I registered on Quickfile I had paid back £2000. I would then enter -£13000 as the outstanding balance.

Regards Alan.

QFSteve Support Team
4 March

Hello @twistgrip

You would record the total amount of the loan (excluding interest) received into a liability code.
when you come to make a payment on the loan the transaction would be in two parts (the capital paid and the interest).

You would pay x amount off the overall loan to reduce the liability and you would pay x amount of interest recorded as an overhead.

You would repeat this process each month until you’ve repaid the loan (and the liability will be clear).

Please see the link below for more information.

Hello @twistgrip

That would be correct.
In your example you had a loan for £13000 in the “snapshot of your data” when you started using QuickFile.

The £2000 was accounted for in your previous software/books resulting in the opening balance of £13000.

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