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Loan Repayment Recording that uses 3 accounts

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Kristelle
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Loan Repayment Recording that uses 3 accounts

We have a loan that we repay that I want to keep track of in MYOB. 

I have set it up as a liability (credit card - so that I can keep track of it). I know how you should normally record the transaction, as a spend money, to use the expense account, etc, but because of the repayment for this loan going between 3 accounts & wanting to track each of those accounts, I can't seem to work out an entry to make it go to the expense account.

Currently, the entries I do are:

The money leaves our main bank account & goes to a loan operating account with a different bank. I just use a transfer money entry for this.

Then the money goes from the loan operating account to the actual loan. When I do a spend money entry for this, it uses the loan operating account as the 'pay from' account & the loan as the account number. 

Is there a better way to record the entries to have it show in the expense account, or is there a journal entry that can be done? 

If I use the expense account straight up in spend money, then I can't either track that it's gone to the loan. If I use a receive money entry for the loan, I can't track the account the money came from.

The interest that accrues on the loan can be entered as a journal entry & thus use the correct expense account, as it just 'touches' the loan. With our repayments, they're going between 3 accounts that I'd like to be able to keep track of.

I hope this makes sense.

Any ideas?

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Tracey_H
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Re: Loan Repayment Recording that uses 3 accounts

Hi @Kristelle 

 

Thanks for your post. I think you're missing a piece of the puzzle which is why it's gotten you confused. There's two sides to a loan, one being receiving the money and the repayments which are tracked using a liability account. The other side is what you spend the money on, typically this would be where an asset or expense account would come into play. 

 

Recording loans and repayments can be complex so I would recommend speaking to your accountant to make sure it's reported correctly.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

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Kristelle
Experienced Cover User
23 Posts
Experienced Cover User
Australia
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Accepted Solution Solved

Re: Loan Repayment Recording that uses 3 accounts

Hi Tracey

 

Thanks for your reply. I had the loan all set up correctly, etc. It's only because there are 3 accounts being used for the repayments, that we want to track, that was making it a little difficult. I got in contact with our accountant & he has said I am entering it all correctly. That's a relief!

 

Regards,

Kristelle

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