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- Dr Deposit Account
- Cr Current Bank Account
The return of funds to the current bank account can also be performed via Money Transfer.
See more on Money Transfers
2. Deposit to Supplier without a loan agreement
If money is transferred to a supplier as a deposit, it is not an expense, but an asset (prepayment/deposit):
Step 1. Create a Bank Payment (or Cash Payment)
Create a Bank Payment (or Cash Payment) with the Transaction Type: To Supplier
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On the Payment Details tab:
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See more on Cash/Bank Deposit (to Supplier)
Step 2. Receive the Accrued Deposit Interest
Create a Bank Receipt with the Transaction Type: Others.
On the Payment Details tab, enter the following:
- GL Account
- Department
- Income Item
- Business Activity
- Amount
- Company
- Contract
Press Post or Post and Close
3. Deposit Issued as a Loan
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- Select Transaction Type: Loan Issued
- Fill in:
- Borrower
- Contract / Agreement number
- Loan amount
- Interest rate
- GL accounts and other dimensions
On the Amortization Schedule tab:
- Set schedule type and payment frequency
- Enter loan start date, term, and repayment start date
- Click Calculate, then review and post
See more on Loan Agreements
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- Create a Bank Payment with Transaction Type: Loan Issued
On Payment Details tab, select:
- Contract
- Loan Agreement
- GL Account (Loan Receivable)
Entry:
- Dr Loan Issued
- Cr Cash / Bank
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Step 3. Income (Interest) Accrual on a Loan Issued
During Month-End Closing, if the "Calculate Monthly Interest on Loans" option is selected in the Month-End Closing assistant, the system automatically generates a Processing of Current Loans document.
This document lists each loan (including loans issued) with the monthly interest and fee amounts to be posted as income (for loans issued) or expenses (for loans received) for the current period.
The interest is calculated based on the loan agreement terms and is posted automatically for the closing period.
Entry:
- Dr Current Interest Receivable
- Cr Finance Income
Step 4. Receive the Accrued Deposit Interest
Create a Bank Receipt directly from the Loan Agreement.
Click Generate > Bank Receipt.
Alternatively, on the Main tab, select Loan Agreement as a Basis and click Fill by Basis.
All data will be filled automatically based on the loan agreement schedule.
Entry:
- Dr Bank Accounts
- Cr Current Interest Receivable
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