Advanced Budgets - Loan setup
Cashbook Platinum
Before Starting
Note: The contents of the Add Accounts list is controlled by the settings in the Account Groups option under the budget Setup menu. This is used to keep the list to a manageable level and to ensure that only accounts from the appropriate section of the chart of accounts are used
To illustrate how these accounts work within the budget, we'll use a very basic example of a business purchasing a vehicle for $75,000 fully finance. Repayments are $2050 per month.
Step 1: Capital
The Loan Received account is used to record the receipt of the loan. For this example the amount borrowed for the purchase of the vehicle was $75,000 in July 2018.
The Loan Repaid account is used to record the loan repayments . For this example the business makes loan repayments of $2050 each month.
Step 2: Net Worth
Click on the <Net Worth>
Where "Balance Sheet Link" accounts are present, there may also be another line for the same account. This is used for the opening balances for this account and any manual adjustments. Where the Net Worth Budget is printed, any "duplicate" lines will be added together and show as one total line for that account.
When you add the Loan Received and Loan Repaid accounts into the <Capital> section of the budget, and provided these accounts were setup with a Balance Sheet Link to a liability account in Chart, the Liability section in <Net Worth> will be automatically populated.
816 Variable Loan (Bal. Sheet Link) shows the balance of this account per month. e.g. July 2018 Amount Financed - Less Repayments.
816 Variable Loan (Manual) - any manual adjustments would be added here. Or if this was an existing loan, the opening balance would be entered here
Article ID CBP4338