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Evo-ERP and DBA Classic >> Accounting >> Setting up a new loan in Evo
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Message started by PhippsBird on 08/18/16 at 14:26:34

Title: Setting up a new loan in Evo
Post by PhippsBird on 08/18/16 at 14:26:34

I am attempting to set up a new loan which has a predefined term and rate of interest. I thought I had accomplished this by setting it up under APB with a "beginning balance". However, as I now look at AP Aging, the original amount of the loan is the unchanged outstanding balance. The past 5 months of payments have not reduced the balance at all. How have the rest of you set up new installment loans?

Title: Re: Setting up a new loan in Evo
Post by Lynn_Pantic on 08/18/16 at 17:09:39

The loan itself would not be set up in AP-B but rather in GL-B as a cash receipt, debit to cash (you got money) and credit to loan payable. Then as you make payments, you process in AP-B posting the debit to the loan balance and interest as applicable and the payment credits cash. The balance sheet will reflect the loan paydown, not the AP Aging.

AP-B "Beginning Balance" is for entering open AP balances when implementing a new installation.

Title: Re: Setting up a new loan in Evo
Post by PhippsBird on 08/19/16 at 06:09:00

Thank you! This will work perfectly!

Pattie