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Nov 24, 2022 5:31 PM UTC
Question

Can you help me line of credit principle , interest amount categorise, getting double interest entries when auto update the bank transaction how can fix it ?

problem in auto update line of credit transactions

1 reply

Nov 25, 2022 5:31 AM UTC

Not exactly sure what the problem is, but let's review the Accounts.

 

You should have one Liability Account for the Loan Principal (e.g. Bank AAA Loan)

You should also have an Expense Account for the Loan Interest (e.g. Bank AAA Loan Int)

 

The Principal Payment for each month is applied to the Bank AAA Loan Acct and the Interest Payment for the month is applied to the Bank AAA Loan Int Account.

 

If you make any additional Principal payments, those too would go to the Bank AAA Loan Acct. 

 

If you have or think you'll have multiple loans over the yeas, then I'd suggest you create primary and SUB Accts for both the principal and interest.  It makes it easier to hide old loans but keep everything together with various bank names.

 

Loans

- Bank AAA Loan (#1234)

- Bank AAA Loan (#5678)

- Bank BBB Loan

 

Loan Interest

- Bank AAA Interest (#1234)

- Bank AAA Interest (#5678)

-Bank BBB Interest