In the Loans sub-module, you can see loans issued by your entity, their schedules and interest calculations. Loans must be recorded in the Entries module as well (issued as well as received loans); guidelines for recording those are available in the Entries module.
In order to activate the Loans module, go to Settings > General settings > Program settings > Change > select‘Activate loans module’ and save. In order to edit loans, select Billing > Loans from the program menu.
The module consists of active and non-active loans.
In order to enter a new loan – Billing > Loans > Add new loan.
A window opens that contains:
• Loan name – required field.
• Buyer – required field. Buyer related to the loan; the recipient of the loan. Buyer can be selected from existing buyers or a new one can be added.
• Loan value – required field. When entering the loan value, various currencies can be selected, depending on the settings. If the loan is issued in a currency other than the euro, then here you can select the correct currency. After selecting the currency, another row for exchange rate appears, displaying a field for the exchange rate, which is to be filled in according to the current exchange rate of the bank during the time of transaction.
• Interest rate – interest rate of the loan.
• Date of loan agreement.
• Date of first repayment.
• Period of loan – required field. Here you need to indicate the length of the loan period.
• Method or repayment – select from a drop-down menu.
• Repayment interval – required field. Select the interval for repayments: year, quarter, and month.
• Principal assets account – required field.
• Interest revenue account – required field. Select a suitable interest revenue account: 8401 Interest income from bonds, 8402 Interest income from loans or 8409 - Other interest income.
• Other notes – here you can add additional information about a buyer or a loan. This is displayed in internal lists with a green exclamation mark after the name of the loan.
After the required fields are filled in, click on the ‘Save’ button. In the same window, it is possible to display loan schedule by clicking on the ‘Show loan schedule’ button or to cancel adding a loan by using the ‘Cancel’ button.
When saving a loan, a window opens that displays loan information and loan schedule. In this window, it is possible to confirm, change or delete the loan or go back to the loan list window in the module. If possible, a loan agreement / document related to the loan can be added by clicking on the ‘Upload’ button on the ‘Loan agreement/document’ row.
By confirming the loan, the loan is approved and a new entry is added to the Active Loans tab. In this window, a loan can be deactivated, confirmation can be voided and a loan agreement or a document related to the loan can be added. In addition, information about the loan is visible, as are incoming/outgoing payments related to the loan and the loan schedule. If you want to change the status of a loan to inactive, then click on the ‘Deactivate’ button. This moves the respective entry from the Active Loans tab to the Inactive Loans tab. If you would like to void a loan confirmation, click on the ‘Void confirmation’ button; this voids the loan confirmation, so you can change information about the loan, delete the loan entry, however, the loan entry remains on the Active Loans tab. If a loan entry is deleted, the entry disappears from the list. If incoming payments were reconciled with the entry, then these survive in the Incoming Payments module; however, the loan entry disappears.
Active Loanstab allows filtering loans according to the start and end dates, account, status and buyer. Status indicates whether a loan is unconfirmed, confirmed or voided. Once you have selected parameters for the filter, you need to click the ‘View’ button in order to display the results; if you want to clear the filter, you need to click on the ‘Clear filter’ button. For filtering, you can enter search dates on the start and end date fields. If you enter only the start date, the program will search for entries made on and after the respective date. If you enter the end date, the program will find all entries made until that date. If you enter both the start and the end date, the program will find all entries within that period.
It is possible to sort according to name, date, repayment date, buyer, loan value and status.
Loan rows can be opened by clicking on the loan name. Depending on the loan status, different windows open.
When opening a confirmed loan, user can see loan information, incoming/outgoing payments related to the loan and the loan schedule. In this window, user can change an active loan to inactive, void the confirmation or return to the Active Loans tab. If possible, loan agreement/document can be added by clicking on ‘Upload’.
When opening an unconfirmed loan, user can see loan information, incoming/outgoing payments related to the loan and loan schedule. In this window, user can change the unconfirmed loan, confirm, delete or return to the Active Loans tab. If possible, loan agreement/document can be added by clicking on ‘Upload’.
Inactive Loanstab allows filtering loans according to the start and end dates, account, status and buyer. Status indicates whether a loan is unconfirmed, confirmed or voided. Once you have selected parameters for the filter, you need to click the ‘View’ button to display the results; if you want to clear the filter, you need to click on the ‘Clear filter’ button. For filtering, you can enter search dates on the start and end date fields. If you enter only the start date, the program will search for entries made on and after the respective date. If you enter the end date, the program will find all entries made until that date. If you enter both the start and the end date, the program will find all entries within that period.
It is possible to sort according to name, date, repayment date, buyer, loan value and status.
Loan rows can be opened by clicking on the loan name. Depending on the loan status, different windows open.
The window that opens allows activating a loan by clicking on the ‘Activate’ button, as well voiding confirmation or returning to the Inactive Loans tab.
By activating a loan, the loan is moved from the Inactive Loans tab to the Active Loans tab. By voiding confirmation, inactive loan can be changed, confirmed, deleted or it is possible to return to the Inactive Loans tab.
Issued loans can be recordedin the Entriesmodule; payments and repayments are recorded in the Incoming/Outgoing Payments module. When loans are saved and confirmed in the Loans module, loan receivables are not recorded in accounting and actual payments are not made from the bank account of the entity. Entries module has guidelines for creating an entry.
In order to issue a loan or record a loan repayment, an entry must be added to Billing > Incoming/outgoing payments.
After loan repayment and interest have been received, loan repayment and interest can be selected from incoming payments to be reconciled. This option is available when the payer is the same person, buyer or supplier to whom the loan was issued.
Two options are available for recording an outgoing payment or loan repayment.
• Upload bank account statement.
• Add incoming payment/outgoing payment manually.
When uploading a bank account statement:
When uploading a bank account statement, incoming and outgoing payment entries are added automatically; however, these are not reconciled with the issued loan or repayment entries.
In order to reconcile an issued loan, open Outgoing Payment tab and click on the ‘View’ button at the end of the unreconciled loan repayment row. The window that opens displays information about outgoing payments and outgoing payments that are reconciled with purchase invoices, employee compensations and accounts. Select a confirmed issued loan on the ‘Purchase invoice’, ‘Employee compensation’ or ‘Account’ fields and click on ‘Save and confirm’.
A window opens displaying that issuing the loan has been confirmed, the respective sum has been taken off a bank account / out of cash / an account of a reporting person, and a loan receivable has been added. In this window, it is possible to void the payment or return to the list of outgoing payments.
In order to reconcile a loan repayment, open Incoming Payment tab and click on the ‘View’ button at the end of the unreconciled loan repayment row. The window that opens displays information about incoming payments and incoming payment relations to sales invoices and accounts. Both the principal amount of loan and interest must be reconciled on the ‘Sales invoice’ or ‘Account’ fields. A second row can be added by clicking on the ‘New row’ button, which creates a second row for relations. When selecting a repayment of the principal amount, enter the sum of repayment of the principal amount of loan in the field ‘Sum’ on the left and select the row for the repayment of the principal amount of the loan from the right cell. When selecting a repayment of interest, enter the sum of repayment of the interest in the left cell on the second row and select the row for the repayment of the interest from the right cell. In order to confirm that the incoming payment is reconciled, user must click on ‘Save and confirm’. This confirms the relation between the incoming payment and loan repayment, as well as creates respective entries where money is received and the respective loan receivables and interest income accounts are credited.
When adding incoming/outgoing payment manually:
If a user decides to add an incoming payment for repaying an issued loan or an outgoing payment for a received loan manually, then click on ‘Add manually’ and enter information about the transaction.
When issuing a loan,add the outgoing payment manually, fill in information regarding the payment and save it. When saving, an outgoing payments window opens that displays information about the outgoing payment and payments that are reconciled with purchase invoices, employee compensations and accounts. Select a confirmed issued loan on the ‘Purchase invoice’, ‘Employee compensation’ or ‘Account’ fields and click on ‘Save and confirm’.
The window that opens displays that the issued loan has been confirmed, and this sum has been taken off a bank account / out of cash / from the account of a reporting person. In this window, it is possible to void the payment or return to the list of outgoing payments.
When adding a received loan repayment,add an incoming payment manually, enter information about the incoming payment and save the payment. The window that opens displays information about the incoming payments and relations of payments with sales invoices and accounts. Both principal amount of loan and interest must be reconciled on the ‘Sales invoice’ or ‘Account’ fields. A second row can be added by clicking on ‘New row’, which creates a second row for relations. When selecting a repayment of the principal amount, enter the sum of the repayment of the principal amount of loan in the field ‘Sum’ on the left and select the row for the repayment of the principal amount of the loan from the right cell. When selecting a repayment of interest, enter the sum of the repayment of interest in the left cell on the second row and select the row for the repayment of the interest from the right cell. In order to confirm that the incoming payment is reconciled, user must click on ‘Save and confirm’. This confirms the relation between the incoming payment and loan repayment, as well as creates respective entries where money is received and the respective loan receivables and interest income accounts are credited.