Issued Loans

Issued Loans is a section designed to keep record of loans, account for loan interest, track principal and interest payments.

All Loans is a list of all loans issued by a company. The loans can be sorted by date, document number, partner name, general ledger account, due date, total loan amount, and due amount.

The Waiting for Approval list includes the loans to which a status of ‘Waiting for Approval’ has been assigned.

Open Loans is a list of active loans with a status of ‘Open’ assigned.

Upcoming Amortization is a schedule of accruals of interest payments on loans.

The Filter Options dropdown menu enables filtering loans by tags and using the advanced search function.

Clicking on the loan date or document number in the list will open that loan’s details page featuring the following tabs:

The General Information tab contains the loan date, document number, partner (borrower) name, general ledger account for the principal amount, general ledger account for the accrued interest on the loan, document date and number, counterparty, and loan term.

The Amortization Schedule tab contains a form to create a repayment schedule in accordance with the established formula or in equal amounts. The following variables are used in the formula: 

G – the total loan amount; and 

N – the remaining balance on the loan. 

The form also contains data on the number of the loan repayment periods and the recurring payment frequency (recurring period) – a week, a month, a quarter or a year. After the amortization schedule is created and confirmed, all entries for accrued interest up to the current date are made automatically, while all subsequent entries are made automatically according to the schedule for the given day.

Operations is a report of the flow of a loan. Created based on the entries, the report provides information about the loan date, amount, interest, payment amount, and balance. You can delete any record (along with the corresponding journal entry) from the Operations report except for the one of the repayment of the loan. Deleting a record cancels the payment schedule. After the record is deleted (along with its entry), a new payment schedule needs to be created.

The Journal Entries tab contains all journal entries (except repayments) related to the loan.

The Files tab is a list of uploaded files (such as PDF or Word documents) related to the loan.

A loan document can be deleted along with all the entries related to the loan, except for the ones related to the repayment of the loan. These entries should be removed prior to removing the loan document.

To add a loan amount, click the ‘Add Loan Amount’ button and enter the loan amount into the journal entry. Making this entry will cancel the payment schedule. You can add as many payments as you want to the loan document, meaning the loan can be paid by instalments.

To accrue interest manually, click the ‘Accrue Interest’ button, enter the interest amount and date of the entry. Making this interest accrual entry will cancel the payment schedule.

Add a Payment is a form to register the repayment of a loan. Choose an account and enter the repayment amount and date.

When the loan is fully repaid and the remaining balance is zero, the ‘Close the Loan’ button becomes available. Clicking this button will change the loan status into ‘Closed’ and the payment schedule will be deleted (for early loan repayments).

An overview of working with financial loans

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