How to record property purchase inc. equity
Posted: Fri Aug 17, 2018 3:05 pm
I am just starting to use LV. I am purchasing a property through a LTD... £180k, £36k equity (by way of directors loan) and £144 mortgage.
I can set up the property and the mortgage in LV - but I wondering how I record the D loan / equity?
Re: How to record property purchase inc. equity
Posted: Thu Aug 23, 2018 4:36 pm
Thank you for contacting support
Nowadays it is possible to record payments from non-bank accounts, as well as bank accounts. That means we can set up like this
Before you start, go to Settings > Chart of Accounts
Create an Equity account called Director's Loan Account if you don't already have one. Tick the box marked Allow Payments From/To Account
Enable the Allow Payments From/To Account box on Mispostings as well. Once you have completed up to here, you wont need to do it again
In Property Manager > Expense: Record an expense for the purchase of the property for £180,000. Do not record a payment yet
In Finance Manager > Mortgages and Loans: Record the mortgage for £144,000
If the loan was paid to you, set Loan Paid To Bank Account, if not, set Loan Paid to Non-Bank Account: Mispostings
Record a payment to the expense for £144,000 from whichever account you paid the loan to in the previous step
Record another payment to the expense for the remaining £36,000 from the Director's Loan Account