Setting Up Loan / Mortgage
Advice from your accounting professional is suggested, but until you consult with your accountant, here is a suggestion to set up a loan or mortgage in AccountEdge:
- Create a new Liability account specific to that loan. You can name it Loan (Name), or Mortgage (Name).
- If you have received cash from the loan, or some other asset like a building for the loan, you will make a journal entry. The journal entry will debit the asset and credit the new loan liability account for the same amount.
- To make a payment on the loan, go to Spend Money in the Banking Command Center. Allocate the payment on the lower half of the check screen to the new liability account created for the loan.
If the payment includes interest, your loan payback will include a separate line for interest. Interest is an Expense account. If you do not already have an interest account, create a new one (6-nnnn) in your expense accounts.