updating Operating Loan Information

[midway]

The church has an operating loan and we have been keeping track of basically principle only in the computer system.

We just got from the bank the actual amount of the loan plus interest. How do I update the balance of this operating loan?

I have tried to go into Chart of Accounts and update it that way but that didn't work.

We are using Version 10 on XP

thanks!

[Zorak]

You will need to adjust the balance by entering a transaction against the account in Fund Accounting.

If you need to adjust the principle vs interest paid on each of your checks thus far, they would need to be voided through accounts payable and reentered as manual checks that look like the following:

01-1110-000 checking (credit) 1000.00
01-2200-000 loan balance (debit) 500.00 (principle amount)
01-5800-000 loan interest (debit) 500.00 (interest amount)

If you just want to adjust the loan balance now without including the interest paid expense to date, it would be

01-2200-000 loan balance (debit) 1500.00 (whatever adjustment amount)
01-3110-000 unrestricted (credit) 1500.00

[midway]

I am little confused. I am not really understanding what you are telling me to do.

As of right now, when we run the balance sheet report, it reflects that our loan balance is $8,000.

What I want to do is when I run the balance sheet report, is to reflect that actually our loan balance is $ 8,031.64.

How do I do this?

Thanks!

[Jeff]

How have you been recording the loan payments? What accounts have you been crediting and debiting?

[midway]

No we have not been keeping records of the loan payments.

We have just started a new church year and within our new budget we will begin paying on the principle and interest on the loan using
6625: Loan Principle
6630: Loan Interest

to reflect payments.

I think I have solved the problem by: crediting 2290: Operating Loan and debiting 3110: Fund Balance

when I ran the balance sheet, the new correct loan balance was reflected.

Thanks!

[Zorak]

FYI, using two expense accounts, 6625 and 6630 will never change the balance of the loan in account 2290.

if you credit 2290 for the amount of principle with each payment instead of using 6625, the 2290 balance should always accurately reflect the loan balance.

[midway]

so how can we show using our income/expense report that each month we are paying out 6625- $200 while also showing that our loan is being paid down.

For example using AP, we would write a check to the bank crediting general fund and debiting 6625 so that when we run income/expense report each month, it reflects that we had an expense of $200 that went to our loan.

Would we then transfer money from 6625 to 2290 to pay down the actual principle?

Thanks!