Record a loan made to another party/company

If your company makes a loan to another party, you should record the value of this loan and the repayment values in your accounts to ensure that your management reports reflect the asset correctly.

Create the required nominal codes

If these nominal codes already appear in your nominal list, please proceed to the following section to record the receipt of the loan. These nominal codes are based on the default chart of accounts, if you use a different nominal structure, ensure equivalent nominal codes are present.

1. On the navigation bar click Nominal codes then click New/edit.
2. Complete the Nominal Record window as follows:

   N/C	Enter the nominal code number you want to create, for example, 1300. If the nominal code isn't featured, you must add it to your chart of accounts.
   Name	Enter the name of the account, for example, Loans made.

3. Click Save then click Close.
4. Repeat this process to create further nominal codes as required.

Record the loan made

For the purpose of this article we'll use the following example:

• The company makes a £/€1,000 loan to another company.
• The total repayment value is £/€1,100 including £/€100 interest.

1. On the navigation bar click Bank accounts then click Bank payment.
2. Enter the relevant information into the Bank Payment window, for example:

   Bank	Date	Ref	N/C	Details	Net	T/C	Tax
   1200	Loan date	Loan123	1300	Loan made to <>	15000.00	T9	0.00

3. Click Save then click Close.

Record the loan repayment and interest

To receive the repayments in instalments, split the transaction as required.

1. On the navigation bar click Bank accounts then click Bank receipt.
2. Enter the relevant information into the Bank Receipts window, for example:

   Bank	Date	Ref	N/C	Details	Net	T/C	Tax
   1200	Payment Date	Loan123	1300	Loan Repayment from <>	1000.00	T9	0.00
   1200	Payment Date	Loan123	7903	Loan Interest Received	100.00	T2	0.00

3. Click Save then click Close.

Upgrade your licence

Growing business? Add more companies, users, or employees to your licence with ease. Leave your details and we’ll be in touch.