Thanks for video. But how do you record the interest for amortied interest that is included in payment. It does not come in as a separate debit in bank account?
Hi - I would use the Add Details link in the bank rec screen and split out the amounts, coded to the relevant codes. I show how this is done in this video here: ua-cam.com/video/xrR8tk7eHB8/v-deo.html
What if I received a loan amount of $8000 and the payoff is 12% of my weekly sales revenue until loan is repaid which includes a capital fee of $809. The repayments includes the capital fee. How would I add the expense of the capital fee? Thank you.
@@beckonware2709 Hi. First you would create an Account Code for the Capital Fee portion. Then, whilst reconciling you would split the repayment amount between your Loan Code and your Capital Fee code. I have a video showing how to split a transaction between multiple account codes. Please take a look here: ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=eMo1P7cqrJ3Mh4kK
What if the the loan repayment is one amount to cover principle and interest? So if you have a loan schedule and say the payment is $1000, in month 1 (p 950 i 50) month 2 (p 945 i 55) etc
@@WalterWarford Hi. You would create two account codes and then split the transaction between the two. Refer to this video on how to do that ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=EWyoIaUA5wd70IJG
Thank you for the informative video! I have a question though. I have a loan that incorporates a brokerage fee. This fee is included as part of the loan's structure. My concern lies in the appropriate method of recording this fee in Xero. Given that brokerage fees might be tax-deductible, I'm keen to understand the correct approach to record this in the accounting system for accurate tax reporting purposes. Could you please provide guidance on this?
Hi. I’m unable to advise if the fee is tax deductible. I would suggest a quick Google on that. When you know the correct treatment, you’ll need to create a Chart of Account code for the fee, then Split the transaction and code to the Loan Account and your newly created fee account.
Hello! I have. Question. What if the company is the one providing the loan? How should I record the borrower's money loan and monthly payment coming in into this company's Xero?
@@hitthebooksnz thanks! There's this one borrower. The company created a bank secured loan account in Xero for it, entering the total loan amount with interest (I guess) as the beginning balance of the bank account. Then, they're transferring repayments from the Checking bank account (where the repayments deposited from) in Xero to the Secured Loan bank account. How do I record if there's a repayment deposited directly into the Secured loan bank account I mentioned?
@@sherilynlemon4176 that’s a bit of a complicated one because you can’t journal to a bank account. I would create a Bill transaction and add a payment transaction coded to the bank account, then reconcile with the payment in the bank account
Hi again.. I have one last Q: instead of creating a bill, can I just transfer from the Checking account (equal to the total amount received) to the Secured bank account then reconcile the received amount in the Secured bank account?
Thank-you! finally a solution here after searching through a lot of unhelpful Xero forum threads
Thanks for video. But how do you record the interest for amortied interest that is included in payment. It does not come in as a separate debit in bank account?
Hi - I would use the Add Details link in the bank rec screen and split out the amounts, coded to the relevant codes. I show how this is done in this video here: ua-cam.com/video/xrR8tk7eHB8/v-deo.html
i guess i need to as the bank what portion interest as it just not state on the statement.
Thank you so much!
Thanks but what about non cash loans? How do you create a liability account with a negative value to start paying off?
What if I received a loan amount of $8000 and the payoff is 12% of my weekly sales revenue until loan is repaid which includes a capital fee of $809. The repayments includes the capital fee. How would I add the expense of the capital fee? Thank you.
@@beckonware2709 Hi. First you would create an Account Code for the Capital Fee portion. Then, whilst reconciling you would split the repayment amount between your Loan Code and your Capital Fee code. I have a video showing how to split a transaction between multiple account codes. Please take a look here: ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=eMo1P7cqrJ3Mh4kK
What if the the loan repayment is one amount to cover principle and interest? So if you have a loan schedule and say the payment is $1000, in month 1 (p 950 i 50) month 2 (p 945 i 55) etc
@@WalterWarford Hi. You would create two account codes and then split the transaction between the two. Refer to this video on how to do that ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=EWyoIaUA5wd70IJG
Thank you for the informative video! I have a question though. I have a loan that incorporates a brokerage fee. This fee is included as part of the loan's structure. My concern lies in the appropriate method of recording this fee in Xero. Given that brokerage fees might be tax-deductible, I'm keen to understand the correct approach to record this in the accounting system for accurate tax reporting purposes. Could you please provide guidance on this?
Hi. I’m unable to advise if the fee is tax deductible. I would suggest a quick Google on that. When you know the correct treatment, you’ll need to create a Chart of Account code for the fee, then Split the transaction and code to the Loan Account and your newly created fee account.
Amazing thank you! ❤
Hello! I have. Question. What if the company is the one providing the loan? How should I record the borrower's money loan and monthly payment coming in into this company's Xero?
You’d code the lump sum loan payment from the company using a Liability code. Then code the repayments to the same liability code.
@@hitthebooksnz thanks! There's this one borrower. The company created a bank secured loan account in Xero for it, entering the total loan amount with interest (I guess) as the beginning balance of the bank account. Then, they're transferring repayments from the Checking bank account (where the repayments deposited from) in Xero to the Secured Loan bank account. How do I record if there's a repayment deposited directly into the Secured loan bank account I mentioned?
@@sherilynlemon4176 that’s a bit of a complicated one because you can’t journal to a bank account. I would create a Bill transaction and add a payment transaction coded to the bank account, then reconcile with the payment in the bank account
@@hitthebooksnz thanks so much!
Hi again.. I have one last Q: instead of creating a bill, can I just transfer from the Checking account (equal to the total amount received) to the Secured bank account then reconcile the received amount in the Secured bank account?