How to create a personal loan in personal finances

I use Manager for both my business and for personal finance. I have borrowed money on my personal account from family member. So I need to show that I have taken a loan on my personal finances. I have looked through the Guides and I cannot find anything regarding loans.

How do I do this in Manager - I believe that I want the loan to show as capital or equity not as an imcome account?

I think you need to create a new chart of account named Shareholder Loan in Liabilities.

So you go to your bank account and then receive money from this Shareholder Loan account.

I think that I need to create another account as well. To get the money into the loan account. I will read up on the matter. Thanks.

Shareholder loan name only applies if your business is a company. If you are using Manager for personal finances, then just create non-formal liability account such as Loan - Family member name

The balance of this account will be zero. Then go to Bank accounts tab (if you have received borrowed money into bank account) and receive money into bank account categorizing the receipt to the liability loan account. This will debit balance of your bank account and credit liability account.

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Oh I see. I did not read what rully_p said properly. I need to go to the bank account and receive money! Now I see how it works. Thank you! I presume that when I pay the loan, I just go to the bank account and spend money and allocate to the liability account. Good.

Hi @dalacor, you’re correct.

How do I properly create and categorize a loan given to a friend which is paid installmentally? Which I cannot put under account receivable because it was not invoiced and not a sale?
I’ve searched the forum and looked at the guides but couldn’t figure out how to deal with the situation.

@lubos Secondaly, though off topic, I love the simplicity of this forum in terms of design and how powerful it is too, is is built on a custom code or with forum cms are you using?

You create a current asset chart of account called "Friend Loan. Then when you advance the money
Bank Account Spend Money with line item Friend Loan. When an instalment is made Bank Account Receive Money with line item Friend Loan.

It’s Discourse, check

@Brucanna @lubos Thanks for the response and recommendation.

One more thing I noticed in my account is that I created some purchase invoices (which are recurring) and linked them to a partcular expenditure item created for that supplier, after I paid the invoice. there are corresponding spent money record created in my bank account and the appropriate amount deducted from my bank balance but the total value of the invoices does not equal the amount recorded for the supplier.

I did select the supplier expenditure item when I was creating the invoices, and all invoices are in the purchase invoice option except the expenses value for that supplier does not equal the total value of the ivoices.

Waht do I do?

I think your trouble may be related to the fact that you created the purchase invoice first and paid it, then created the purchase invoice items and substituted them into the purchase invoice. Do I understand that correctly?

Try this to fix things:

  1. Back up your accounting record using the Backup button. (This is really only in case you record something incorrectly during the correction process, not because the process risks anything.)

  2. Record all the parameters for a single purchase invoice.

  3. Delete the payments for that invoice.

  4. Delete that purchase invoice.

  5. Recreate the purchase invoice, using the purchase invoice items that now exist.

  6. Re-enter the payment for that invoice.

Do things work? If so, do the same thing for the other purchase invoices involved. If not, post more details so someone can help.

@Tut No it didnt, hopefully I’ll post my process if I figure it out. Thanks

@Brucanna, I did as you directed and the loan value was added under my Asset (Balance Sheet) increasing my asset by the value of the loan given. Now when I receieved the first installment to bank account, the value of my Asset (Balance Sheet) grew by the value of the installmnt paid but the value of the loan was not reduced (remained the same). Would I have to reduce the value manually or is there a way to make the amount (installment) received auto-deduct from the balance of the loan?

Is there a place I can read up on basic accounting, thanks?

I was able to figure out the reason why my invoice was never added. My start date in “settings” was set to November 1 whereas the purchase invoice was issued in October. So even though I added it correctly and paid for it, it was not reflecting in my Expense records.

Immediately I modified my start date to October 1, the value was updated.

Thank you everyone…

  1. After you created the Friend Loan BS Asset account, you would advance the loan - Bank Account Spend Money with account line item being Friend Loan, The Total Assets should remain the same, or does the asset value you are mentioning excludes the bank accounts.
  2. When you did the Bank Account - Receive Money, what account did you use as the line entry. It should have been " Friend Loan". Can you post a screen shot of the Receive Money.

Two great resources are and The first is probably better for a novice, while the second assumes a higher level of knowledge and is more technical.

@Brucanna and @Tut, Thanks for your responses, miraculously the receive money worked and reduced the value of the loan with the value of the installment. I do not know what I was doing wrongly earlier. Thanks

@lubos and @Brucanna, is there a way to create another account group in balance sheet and move all my receivables to that group. I prefer to only have Bank Accounts and Cash Accounts in a group so that I can see the true sum of what I have in both accounts and not be decieved by my huge receivables without realizing that my Bank and Cash accounts are already in deficit.

I know this is not the right category, but I don’t know what category this question can belong to.


Yes, go to Settings - Chart of Accounts - BS: select New Group and name it with the Group select as Assets.
Then you Edit your receivables accounts to change their Group. To have your BS groups to appear in the right order you can allocate a Code

@Brucanna, thanks for your response. I had tried that earlier and it was created as a sub-group under asset category and I cannot move other items such as Cash at Bank into that group because it is being created like an item under Assets.

I want it to be an Asset group but still be at the same level as Asset, Liabilities, and Equity. That’s the only way I can move other items under it.

This is possible with P/L where I could create different types of Expenses Groups on the right side but not with BS