Sir… i maintain different personal loans as customers and make proper record of EMI… I dont have any report to show against each loan how much EMI i have paid till date…
Please help me to formulate a report to know the above…
thanking you
Surya prrakash
Surya Ji is having the same problem with me but till now I have not got any solution to it but as soon as I get any solution for it I will tell you immediately
Well, first of all, assuming you are referring to loans you made to others, who are repaying you over time, you should not have set them up as customers. Customers are subsidiary ledgers under Accounts receivable, entities to whom you send sales invoices.
Loans you are owed should be set up as asset accounts. If you have several of them, you probably want to use special accounts reporting to a custom control account. See Use special accounts | Manager. Initial disbursement of the loan principal would be debited to the special account via a payment. Principle coming in from the loan recipient would be entered as receipts credited to the same account. Interest on the loan would be split out in the receipt and credited to some income account.
You could then drill down from the Summary and export the listing for the special account involved. If necessary, you could manipulate the export in a spreadsheet to make something sophisticated to give to the loan recipient. Understand, however, that Manager is not a dedicated loan processing software program and does not offer features customized for that market niche.
Having said all that, would it be possible to treat loan recipients as customers? Yes, and the loan would be created like a refund with a payment or credit note. In that case, you could print a transaction-type customer statement, but it would only reflect the transactions against principal, not interest, because the interest would be posted to a different account.
Regardless of using Customers or Special Accounts, Interest should be calculated and posted (debit customer / special account - credit income) separately to any loan repayments.
For instance, Interest for the period can then be calculated without being overly concerned about the date that the repayment was received. In saying that, Manager is best used for simple interest loans, not compounding interest loans (daily rate) unless the calculation is done externally via a spreadsheet.
To be clear, there is no need for the interest to be on a separate transaction. Create a receipt with two line items, which is what I meant by “split out in the receipt.” The receipt will include both principal and interest. So one line item—the principal—is posted to the loan asset account, whether that is in the form of a customer or special account. The other line item—the interest—is posted to an income account.
How interest is calculated is immaterial to how the transaction is entered. Many equal-installment loans presume the payment was received on its due date as long as it is not late. Others calculate actual days of interest, and thus cannot be figured in advance. Regardless, I was describing how to enter the transaction, not calculate the interest.