How is loan interest accounted for?

Each month when a loan repayment is made, it will need to be 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 or mortgage principal sum and part as interest (if applicable), which needs to be recorded as an expense against a category of your choosing. 

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