Loan Repayments

This article is for churches and charities that account on an accruals basis. If you account on a receipts and payments basis, then any loans received are coded as income. When you make loan repayments, this is expenditure. You may want to create seperate categories for loans.

Your charity or church may have outstanding loans or mortgages (money you owe) on your balance sheet. It is important that transactions relating to the payment of these loans are correctly allocated within ExpensePlus so that the transaction is not incorrectly shown as an expense when in actuality, part of it will be the reduction of a loan balance outstanding, and part of it will be an expense (if an interest payment).

Reconciling Loan Repayments

Loan repayments are reconciled from the Match Transactions screen. Once you have uploaded your bank transactions, select the loan repayment in the left-hand table on the match transactions screen, click the + button, then select the 'Loan or Mortgage repayment' option. Select the loan and enter the details for the repayment.

The pop-up menu will provide the option for you to record part of the payment as a repayment of the loan principal sum and part as interest (if applicable), which needs to be recorded as an expense against a category of your choosing. 

You will see the effect of your loan repayment recorded on the Loans screen, accessible from the side menu.

Note: Interest amounts will not appear since these are classed as expenditure and do not affect the outstanding capital balance

Note: if the loan being repaid does not appear in the list of loans above, please see the next section for how to add loans.

Adding Loans

For loans that exist when setting up ExpensePlus, these should be entered as part of setting up your opening fund balances (set up step 3). To add an opening loan, in the sidebar menu go to 'Manage Settings' - 'Funds', click on the fund to which the loan relates and add the loan name and opening balance.

For loans that are received after your ExpensePlus opening balance date, when bank matching, select the paid-in amount in the left-hand table, click the + button, then select the 'loan received' option. Select the 'add loan' option in this popup to add a new loan.

Updating Loan Repayments

If a loan repayment has been incorrectly matched (e.g. the split of 'capital' and 'interest' amounts need to be updated), you will need to unmatch the transaction, then re-match it again.

To do this, go to Bank Reconciliation -> View Statement. Select the bank account and month of the transaction, then click the 'unmatch' button to the right of the transaction in question. Then, click match transactions to re-match the transaction correctly.

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