Re: Loan accounts

Hi

I have this situation with my bank.

I pay fortnightly. The bank takes out my payment and credits it to my loan two times, and very occasionally three times, each month. On the first day of the following month they then charge back the amount of interest that my loan accrued in the previous month. Moneydance does it differently and for each payment that is recorded, it splits the payment between principal and interest which is what most banks do. (I'm not complaining about my bank because I think in the long run I am better off with its method).

To get over this I have to make an adjustment for each payment for that month once I get the interest figure from the bank. I know it is not absolutely precise, but I simply take the total interest for the month and divide it by the number of payments for that month. Then I go to the source account for my payments and adjust the interest payment and the principal payment accordingly. In this way, the closing balance for the end of the month reconciles. As for taxation, there is no problem as my accountant just uses the totals provided by the bank.

It's a niggle, I know, but I doubt that you are going to get any software package that does its mortgage calculations in accordance with the way every lender does it so some manual intervention is necessary. However, this I think is one practical way of "recording the difference" to which you refer and is probably better than creating a "balance adjustment" figure just to set the books straight.

Regards
Anthony
 


On 2011 Oct 13, at 23:31, John Sampson wrote:

> I am about to pay off a loan early, which involves a fee. The figure shown in
> the Moneydance as present balance does not agree with the company's
> figure so I will have to record the difference in some way. Any advice
> would be appreciated.

_______________________________________________
For Moneydance customer support, please visit http://help.infinitekind.com
[email protected]
http://moneydance.com/mailman/listinfo/moneydance-info