Record Loan in Sage 50

Recording. But recording the loan is only the first step. You need to record each repayment that you make against this bank loan.

And then you have to record the interest expense that you incur. This whole process is very important, so proceed with causing and inputting correct information to maintain the integrity of your accounting data. In this post, you’ll learn how to record loans in Sage 50.

Method to Record Loan in Sage 50

The easiest way to record loans in Sage 50 is through a custom journal entry. These entries are not created with inbuilt utilities, unlike invoices and bills. In this custom journal entry, you can choose the debit and credit accounts. Further, you can enter the amount of loan taken from the bank.

Steps to record a bank loan in Sage 50:

1. Launch Sage 50, and log into a company file.
2. Open the General Journal window to create a custom transaction.
3. Select the bank account to debit it.
4. Select the loan liability account to credit it.
5. Click on Post to input the bank loan.

You’ve successfully recorded the loan in Sage 50. You can now proceed with recording any payments made towards the bank loan.

2 easy methods to record payments against bank loan

After recording the bank loan in Sage 50, you can record any payments that you make towards the loan acquired. This also offers you the ability to track loan repayment, and ensure that you’re paying the loan back in time.

Method 1: Recording loan repayment with payment journal

1. In Sage 50, launch the Payment Journal.
2. Click on Make Other Payment.
3. Choose the loan issuer as the vendor.
4. In the Account column, choose the bank loan liability account.
5. Enter the amount of loan in the Amount Column.
6. Choose the interest expense account in the next line to record interest payments on the loan.
7. In the amount column, enter the interest amount for the bank loan.
8. Choose Post or Process depending on your preference.

Method 2: Recording loan repayment with general journal

1. In Sage 50, open the General Journal window.
2. Credit the bank account.
3. Debit the bank loan liability account.
4. Debit the interest expense on the bank loan.
5. Choose Post or Process depending upon your preference.

Conclusion

A loan has been successfully entered into Sage 50. But registering the loan is only the beginning. Each payment you make toward this bank loan must be documented. After that, you must report any interest costs that you have. To safeguard the integrity of your accounting data, continue with the cause and submit accurate information because this entire procedure is crucial.

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