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Add new loan asset account
A superannuation fund may extend a loan to a third party and charge interest for the facility.
The Loan Assets feature enables user to set up loan assets, recording the amount loaned, interest charged, repayment receipts and associated expenses, and a receipt that pays out the loan.
Note: Loan Assets are created via the BANK tab. Do not attempt to create a Loan Asset via the usual Add Assets process.
Mclowd acknowledges that asset loans likely bear no relationship to bank accounts. This process is performed using the Bank functions because the steps to record interest receipts and repayments are logically similar to the steps used to record bank interest and bank transfers. User feedback is invited to enable the team to review the terminology and process to ensure it is as intuitive as possible.
To setup a Loan Asset:
- Click the BANK tab
- Click the ADD NEW LOAN ASSET ACCOUNT button
- Select the Owner (Fund or a Member account) This is the account that provided the funds to advance the loan. Usually, it will be the Fund, but in some instances a Member may choose to advance a loan and other members do not wish to participate in this investment
- Name the Loan (Be sure to use a name you will recognise when adding interest, repayments or expenses. You may wish to use the borrower’s name.
- In the From Account, select the Bank Account or Liability Loan Account from which funds were drawn to advance the loan
- Enter the Balance (the Amount of loan funds advanced)
- Click CREATE ACCOUNT
- Mclowd displays a confirmation dialog
- Click CREATE ACCOUNT to create the loan asset account
- Mclowd displays the Account in the Loan Asset Accounts Panel on the BANK tab