Postby roy » Mon May 15, 2017 12:20 pm
Hello Jimmy
Thank you for your message
The best way to enter these is to set the Start Date as the 1st March and use the statement balance for that date for the loan amount. Then work out the remaining months from that date and enter that too.
You are correct in that LV will show the mortgage and loan drawdown figures in the bank account and you are right that you can record the property purchase to balance it out. You can enter the deposit / equity amount as well to get the actual value of the property if you want your Fixed Asset account to be correct. For reference, please take the following example
Purchase price £140,000
Property Deposit: £40,000
Mortgage: £100,000
Mortgage paid directly to the seller.
1) Create an expense for the property purchase of £140,000 in Property Manager > Expenses. The next two items will cover paying this off
2) Record the deposit payment for £40,000 against the property expense (property purchase) leaving £100,000 still to pay off.
3) Still in Property Manager > Expenses, create a credit note for the remaining £100,000 and choose the Mispostings account. Allocate the credit note to the property purchase.
4) Create a mortgage for £100,000 if you haven't done so already.
5) Enter the following journal transaction in Account Manager > Journal:
Line 1 Debit Mispostings £100,000
Line 2: Credit Bank Account £100,000
Now you will have three payments in your bank account which all cancel each other out, leaving the balance as it was before. To reconcile them go to Account Manager > Bank Accounts > select the account > Account Transactions tab > place your mouse over the transactions that don't really exist and look for the cog icon and select Ad Hoc Reconciliation
Kind regards
Roy