Loans and repayments

https://help.myob.com/wiki/x/4RHq

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You can use MYOB Essentials to record the receipt of a loan and to record the repayments. Because there's lots of loan types, interest rates, terms and conditions, you might need help from your accounting advisor to determine the best way to set this up for your loan.

To accurately track your loan balance, you'll need to know:

the initial loan amount
the value of your repayments, and
the repayment breakdown (how much of the repayment reduces the principal, and how much relates to interest charges)

The example below describes setting up a loan where the loan amount is received by you. If your situation is different – for example, the loan amount isn't received by you but is used to directly pay out a creditor – you'll need to consult your accountant for the appropriate accounting and tax treatment.

Let's step you through setting up a basic loan.

1. Create a liability account for the loan

You need a liability account to represent the loan. When the loan is received you'll allocate it to this account.

In MYOB Essentials, click your business name and choose Accounts List.
Click the Add accounts. If you're using the old accounts list, click Create a new account.
For the account Type, choose Current Liabilities.
Specify an Account Number that suits your account list.
Enter a suitable Account Name.
For the Tax rate, select NTR. Here's our example:

Will you be setting up a bank feed for the loan account? You'll need to set up this account with the Type of Credit Card to be able to associate it with a bank feed.
Click Save.

2. Record the receipt of the loan

When you receive the loan, use a Receive Money transaction to allocate it to the loan account created earlier. Here's how:

Go to the Banking menu and choose Receive Money.
In the Deposit into field, select the bank account that the loan money was deposited into.
In the Memo field, enter a description of the transaction.
In the Allocate to column, select the bank loan account created earlier.
In the Amount column, enter the amount of the loan. Here's our example:
Click Save.

3. Record the loan repayments

Speed things up with bank feeds

If you have bank feeds set up on the bank account your loan repayments come from, simply allocate the loan repayment to your loan account. This means you won't need to record a spend money transaction.

Loan repayments can be recorded using Spend Money transactions. Our example below is for a fixed repayment with the interest portion allocated to an expense account. This allows the loan interest to be tracked separately. For your loan, you might need to seek clarification from your accounting advisor about the best way to enter the repayments and which tax rates to apply.

Go to the Banking menu and choose Spend Money.
In the Pay from field, select the account you're making the repayment from.
In the Notes field, enter a description of the transaction.
In the Allocate to column, select the loan account created earlier.
In the Amount column, enter the amount of the repayment.
If entering the interest component separately, record the details on a separate line. Here's our example:
Click Save.