Money lending invoice format

Hi all.

Anyone here has used Manager to record MONEY LENDING SALES.

Im trying to setup for a small finance firm.

Please assist.


What do you mean by “Money Lending Sales”?

Are you giving a loan to someone, which they will pay back over time with interest?

Are you selling something to someone on credit where they do not pay at the moment of sale but pay later either in one payment and in a series of payments?

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@Joe91, yes. Right on

Sorry - which is it?

I gave you a choice of two :slight_smile:

I’m sorry if I didn’t answer properly.

Giving loan to clients then pay back over time with interest.


In this case, when you create the loan, that is you pay the money to the lender from your bank account, you need to first create a Liability account eg “Loan to X” and make the payment to this account.

Create an account in the P & L section to record any interest charged on the loan

When the lender repays you you you receive the amount to your bank account and credit it to the loan account which will reduce the balance.

Any interest will be posted to an interest received account in the P & L

If you have many loans out, you may want to regroup them together using Special accounts as described here

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Thank you so much

I have created money lending programs.

First you have to create the accounts in the chart of accounts. Since you are the lender, it is an asset to you when you lend out so you create an account e.g. Loans to Customers in the assets section. You also need an account on the chart in the income section to post the interest on the loan. If you have some charges e.g. loan form fees or commissions or management fees or penalty fees etc create them on the income section (if they represent income to your company). If they are liabilities (that you have to pay someone else e.g. Stamp duties) then create an account on the chart to post the charges to.

Next you “create” (register) the customer if they are a new customer.

Now you can start the postings:

  1. We use invoices to the customer to book the interest element and any other fees. For example if the loan is for $2,000 and the interest is 20% per annum, we prepare an invoice for the $200 and set the due date (I will explain later on the due date). Include any other fees in the sale invoice. (Please note down the invoice number for a later step in the process)

  2. Then we pay the loan using a payment and receipt As follows:
    a. Select the payment date and due date
    b. Select the account you are paying from
    c. Select the payee: choose the option “customer” and select the customer’s name from the options
    d. Type in a description e.g. Loan to Faith Multipurpose Cooperative Society.
    e. Select the account: choose the option “receivables” under “account”. Select the customer from the options e.g. Faith Multipurpose Cooperative Society. Select the invoice number from the options
    f. If the loan is to a group, you can enter the names of the individual member of the group in the description
    g. then enter the amount to the individual
    h. select the appropriate tracking code (if you have it set up)
    i. add a new line and repeat the process for each member
    j. Then create

  3. When the customer pays you just follow the normal process of receipt but ensuring that you pick use the invoice number.
    Thank you.


@edna, thank you for that. Appreciate that.

You pay the money to to the borrower, not a lender and the payment is to an asset account, not a liability account.

Cr Bank
Dr Customer loan account.

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