How do I reflect borrowed funds as a current expense in Reckon

davkell

If I was to borrow money for an expense (credit card, loan or from my personal account, say an interest free credit card), can I show that as an expense in full in Reckon at the time of purchase, and then have the fortnightly repayments coming out of the account and reflected as payment to a loan. How do I do that?

Currently, I just set a bill for the total amount, and then as fortnightly payments go out to pay the loan (outside of my Reckon accounts) I link those payments to the bill which then slowly is paid off till completion. The issue here is that the expenses are only recorded as fortnightly amounts. If I purchase something pre tax time, but pay it off over the following financial year, I'd like to have the expense included in this years expenses.

Kris_Williams

A loan would usually be a liability in the company books, and so I would enter a journal debiting the expense the loan was used for and crediting a loan account (liability) as the loan is paid off the liability goes down

LyndaC

Hi 

You could record the loan/credit card debt as a bank account, Reckon One has the facility to add a credit card/loan account. 

You would then put the expenses in as they are incurred against the loan account, you then set up the repayments to this facility.

Lynda