Borrowed Loans

Borrowed Loans are used to record funds your company has borrowed from another organization.

Creating a Borrowed Loan

To create a loan through the Finance module menu, go to the Borrowed Loans subsection and click the Create button in the upper right corner.

Alternatively, click the plus (+) icon in the same menu.

In the loan creation window, fill in the following fields:

1. Title by which this loan will be identified in your reports;
2. Outstanding amount of the loan taken;
3. Interest Rate (%) for the loan;
4. Borrowing repayment term:
   • Long-term — if the loan is taken for a term of more than 1 year;
   • Short-term — if the loan is taken for a term of less than 1 year;
5. Issue and Repayment Dates;
6. Monthly payment day — the specific day of the month for repayments;
   • If you specify a day that is not present in every month (e.g., the 31st), the system will use the last day of the month for shorter months.
7. Recurring payment amount — specify the total amount including interest;
8. Creditor from whom you received the loan;
9. Assignee;
10. Currency;
11. Description for the loan card.

After saving, the loan information will appear in the list.

Loan Operations

The following system Financial categories are associated with loans:

Inflows:

• Receiving a loan.

Expenses:

• Loan Repayment;
• Loan Interest.

Creating a Loan Inflow

The fact of receiving a loan must also be reflected in your financial documents. To do this, navigate to the Money tab and create a Payment entry, specifying:

• Amount;
• Payer who issued the loan;
• Your organization (Payee) that received the money.

Next, this payment must be linked to an entity from the Loans module. To do this, in the payment edit window, open the context menu and select the "Borrowing disbursement" option.

Then, simply select the loan from the list of active borrowed loans and save the changes.

Important: To link the correct loan, the organizations in the payment entry and the loan card must match.

The payment will be automatically assigned the system financial category "Loan receipt."

Loan funds will also be displayed in the Cash Flow report.

Creating a Loan Expense

Expenses for loan repayments also need to be added to the Money tab. To do this, simply create an Expense. In the form, fill in the expense fields and ensure you specify:

• Payee — who issued the loan;
• Category — "Loan repayment."

Then, open the context menu in the upper right corner and select the "Borrowing repayment" option.

In the menu that appears, select the desired loan from the list of active ones and save your choice.

The expense amount will be automatically split into three transactions:

1. Loan Body;
2. Loan Interest — with Cash Flow status;
3. Loan Interest — separately with P&L status.

After saving, the expense will appear in the list with the specified financial categories.

Expenses for the loan repayment and interest will appear in the Cash Flow report. 

In the P&L report, only the interest payments will be reflected.