How to record loan payments

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Con Katsaros
Con Katsaros Member Posts: 3
edited May 2020 in Reckon One
How do i record loan payments in reckon one? I've created a liability account for the loan and a loan balance. How do i record payments to the liability account? Do i enter the principal and interest components of the payment separately? I assume i enter the principal payment as an expense in the chart of accounts and then enter the interest amount to an expense account in the chart of accounts named interest. How do i get the principal payments to deduct from the amount owing in the liability account ?

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  • Kris_Williams
    Kris_Williams Member Posts: 3,483 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
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    So enter the interest as it is charged in the loan account and yes put it against interest, then when you pay the loan account just do a transfer from the normal bank account to the loan account. There is no principal expenses, only an interest expense, the liability account is basically the principal
  • Con Katsaros
    Con Katsaros Member Posts: 3
    edited March 2020
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    I don't have my bank account linked to reckon, can i just use the make payment section to record the principal payment or is there a better option?
    If i go to make payment which bank account do i select for the principal payment? I assume the liability account that i set up for the loan?
    Then when i go down the bottom and select new transaction, i type in the amount but which account do i select in the chart of accounts? Or do i just leave the account bit blank and the payment will be added to the liability account? (i was going to set up a principal expense account in the chart of accounts)
    Now for the interest payment, when i go to make payment do i have to select the bank account as the liability account so the interest expense shows up against the correct account?
  • Kris_Williams
    Kris_Williams Member Posts: 3,483 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited March 2020
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    No I didn’t mean about the bank being linked I was only referring to how to deal with it in the software
  • Con Katsaros
    Con Katsaros Member Posts: 3
    edited March 2020
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    ok thanks for your time, are you able to reply to the rest of my comment?
  • Kris_Williams
    Kris_Williams Member Posts: 3,483 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited March 2020
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    Can you call me it would be easier to explain 0415 940 843
  • Cristina Garcia
    Cristina Garcia Member Posts: 1
    edited May 2020
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    how do i enter loan repayments into Premier 2019 accounts edition. anyone?

  • Kris_Williams
    Kris_Williams Member Posts: 3,483 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
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    Was this a loan to the company or by the company - and is there an interest component?