Loans as an asset

Good afternoon. I am about to establish an account in Manager for our Family Trust. The Trustees have authorised a LOAN TO one of the beneficiaries.

My question; how to I input the opening balance for this transaction in the loan account. I have assumed that the Loan account is an asset, not a cash account. (Is this correct?)

Can anyone help - thank you


You are correct. You would set this account up as “Loan Receivable” (or “Note Receivable”, “Loan to Beneficiary”, etc. as you like) as an Asset.

To make the disbursement to the beneficiary (“input the opening balance”), simply create a payment from the bank account the funds will come from, and post it to the Loan Receivable account.

Going forward, as the loan is repaid, create a receipt for the bank the payment from the beneficiary will be deposited to, and post it to the Loan Receivable account, and interest income account as applicable.

Hi p4unger

I apologise. I did not explain myself adequately.

My question should have been, in addition to the asset question: how do input an opening balance for the loan. In other words, on 1 Apr 21, the extant balance from my previous accounting system reads (say - $20,000). How do I get this into Manager?

No worries @stewartbaillie.

When you establish the account in Manager via Settings > Chart of Accounts, you will be given the option to enter the Starting Balance from a previous system, as seen below (as of Manager version 21.9.10).

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Thank you, works great.