Can someone walk me through the process of setting up a loan borrowed from a bank in Manager? In terms that are understandable. I am finding that a lot of responses make no sense because they are using their own terminology and not one that others would understand.
The first thing you need to do is to create a BS - Liabilities - Loan account
Go to Settings - Chart of Accounts - BS side - Add new account - nominate the Group as Liabilities.
Then when the bank pays you the money - Receive Money and Account = Loan account
What about Interest? Separating the principal from the interest when making payment?
What is BS? I keep seeing this and I’m not sure what that means?
You need to add lines to the payment. Allocate the principal amount to the loan liability account. Allocate the interest to an interest expense account.