Add new liability loan account
Mclowd allows the creation of liability loan accounts (similar to bank accounts, but with a negative balance). If you had existing loan accounts as at the date of commencement of recording in Mclowd (migration date), you should have created loan accounts in the Fund Setup process. The ADD NEW LOAN ACCOUNT facility allows the creation of new loan accounts setup after the migration date.
Note: When adding loan accounts in the Fund Setup, you entered an opening balance if you were transferring an existing fund. New loan accounts are opened with $0 balance. Funds are drawn via bank transfers or payments.
To create a new LOAN ACCOUNT, click either ADD LOAN ACCOUNT on the Liabilities tab.
Select the Account Owner (fund or a member).
Note: Where members invest in segregated assets, a loan account may belong to a Member rather than to the Fund.
For example, if Joe Smith decides to use part of his account balance to put a deposit on a rental investment property financed through a loan, and other members of the Fund do not wish to share in this investment, both the property and the loan can be assigned to Joe’s Member Account. All transactions relating to this property would then be allocated to Joe’s account.
Enter or select the Set Up Date for this loan account.
Note: This must NOT be prior to the Fund establishment date. If the Loan existed prior to the Fund establishment date, you must create both the asset and the loan account in the Fund Setup process.
Select the Asset against which this loan is secured.
Enter the Account Name
Select the Lender from the drop-down list. If the lender is not listed, just select OTHER, at the bottom of the list.
Enter the BSB and Account Number for this loan account. This is optional. You can leave these fields blank.
You can return and update the record later to enter this information, or just leave it blank.
Click ADD ACCOUNT to create this loan account.