Entering received loans (the entity has a debt)
In order to record loans in the accounting system, there are several possibilities, only one of which must be selected. If a loan is recorded manually or an incoming/outgoing payment is added manually, followed by importing a bank account statement, then the respective incoming/outgoing payment row must be deleted (otherwise, the incoming/outgoing payment of a loan is added twice).
The first option is to record the loan with an entry.
In order to add a loan obligation, an entry should be added in Accounting > Entries.
Loan obligations should be recorded based on whether these are short-term (up to 1 year) or long-term (over 1 year).
Short-term loans can be recorded with the following entry:
D 1020 Bank account /1010 Cash
C 2110 Current loans and bonds
For calculating various loans, dimensions can be added to account 2110 if necessary (Settings > Chart of accounts settings > Sub-accounts or dimensions > Add new sub-account)
Long-term loans can be recorded with the following entry:
D 1020 Bank account /1020 Cash
C 2810 Non-current loans
For calculating various loans, dimensions can be added to account 2810 if necessary (Settings > Chart of accounts settings > Sub-accounts or dimensions > Add new sub-account)
The second possibility for recording a received loan is to import a bank account statement– when a bank account statement is uploaded, an automatic entry for the incoming payment is made; however, it is unreconciled and must be reconciled manually. For this purpose, open the Incoming Payment tab and click on the ‘View’ button at the end of the unreconciled incoming payment row. The window that opens displays information about the incoming payments and links of payments with sales invoices and accounts.
When selecting a received instalment for a loan, enter the received principal sum of the loan in the field ‘Sum’ on the left; then pick a suitable account for recording the loan in the right field. In order to confirm that the incoming payment is reconciled, user must click on ‘Save and confirm’. This confirms the link between incoming payment and receiving an instalment for a loan and prepares the respective entries (D bank or cash and C charge account).
The third option is to add an incoming payment manually– for this, click on ‘Add manually’, fill in the transaction data and save the incoming payment. After saving, the incoming payment is displayed in a window with information about the incoming payment and links of the payment with sales invoices and accounts.
When selecting a received instalment for a loan, enter the received principal sum of the loan in the field ‘Sum’ on the left; then pick a suitable account for recording the loan in the right field. In order to confirm that the incoming payment is reconciled, the user must click on ‘Save and confirm’. This confirms the link between incoming payment and receiving an instalment for a loan and prepares the respective entries (D bank or cash and C charge account).
If the loan is non-current (duration of the loan exceeds one year), the part that is going to be repaid during the following year must be transferred from the non-current loans account to the current loans account with the following entry:
D 2810 Non-current loans (amount for the following year)
C 2110 Current loans and bonds (amount for the following year)
Repaying loan obligations (entity pays back a loan)
In order to repay a loan, there are several possibilities, only one of which must be selected. If an instalment for a loan obligation is paid manually or an outgoing payment is added manually, followed by importing a bank account statement, then the respective outgoing payment row must be deleted (otherwise, the outgoing payment of a loan instalment is added twice). If the repayable sum includes interest, then this must be recorded separately in the repayment entry.
The first option is to add an entry about repaying a loan.
In order to add a repayment entry, go to Accounting > Entries.
C 2110 Current loans and bonds
D a suitable account for interest expense (8410, 8411, 8412 or 8413)
C 1020 Bank account /1010 Cash
The second possibility for recording a repayment of a loan is to import a bank account statement– when a bank account statement is uploaded, an automatic entry for the outgoing payment is made; however, it is unreconciled and must be reconciled manually. For this purpose, open the Outgoing Payment tab and click on the ‘View’ button at the end of the unreconciled outgoing payment row. The window that opens displays information about the incoming payments and links of payments with sales invoices and accounts. If the loan repayment covered the principal amount, as well as interest, then these must be recorded on separate rows in the outgoing payment.
When repaying a loan, enter the sum of the loan repayment in the ‘Sum’ field on the left, and select a suitable account for repaying the loan from the right field. In order to add a new row, click the ‘Add row’ button and select a suitable account for the interest expense (e.g. 8410, 8411, 8412 or 8413). In order to confirm the reconciliation of the outgoing payment, the user must click on ‘Save and confirm’. This prepares respective entries (D charge account, D interest expense account and C bank or cash).
After confirming the outgoing payment, a window opens displaying that the repayment for a loan and interest has been confirmed, this sum has been subtracted from a bank account / cash / an account of a reporting person. In this window, it is possible to void the payment or return to the list of outgoing payments.
A third option is to add an outgoing payment manually– for this, click on ‘Add manually’ in the Incoming/Outgoing Payments module, fill in the transaction data and save the outgoing payment. When saving, an outgoing payment window opens that displays information about the outgoing payment and links of payments with purchase invoices and accounts.
When repaying a loan, enter the sum of the loan repayment in the ‘Sum’ field on the left, and select a suitable account for repaying the loan from the right field. In order to add a new row, click the ‘Add row’ button and select a suitable account for the interest expense (e.g. 8410, 8411, 8412 or 8413). In order to confirm the reconciliation of the outgoing payment, the user must click on ‘Save and confirm’. This prepares the respective entries (D charge account, D interest expense account and C bank or cash).
After confirming the outgoing payment, a window opens displaying that the repayment for a loan and interest has been confirmed, this sum has been subtracted from a bank account / cash / the account of a reporting person. In this window, it is possible to void the payment or return to the list of outgoing payments.