Loan Repayments

When making loan repayments from the bank account, are these entered by adding a new transaction and then tagging to ‘something not on the list’ and manually choosing the loan nominal account?

Is the loan set up as a separate bank account?

Not yet no. I am waiting on the opening trial balance from the accountant and the repayments made in the new financial year are to be offset against the figures that come through in the opening balances.

In general any loans are managed by setting up a new bank account (of type loan) and setting the open balance to match the balance on the loan account. Any repayments made to that loan are then tagged as bank transfers.

Thank you, can I omit entering an opening balance when creating the loan bank accounts and leave that until I receive the full opening trial balance from the accountant and enter them then?

Yes you can, it will just mean the loan account will be in credit until you add the OB later.

brilliant, thank you :smile:

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