Recording Loan Fees
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Usually, fees are added or removed from the value of the loan you take out. The amount you receive in your account (or is handed to the solicitor) is often different from the amount you owe to the loan provider. This process covers how to record everything.
Example.
Mortgage: £60,000
Fees: £500
Amount received: £59,500
Firstly, enter the mortgage and set the loan amount to be the amount that was received in to the bank account or paid to the solicitor (£59,500).
Add a bill for the fees (£500). Use this article if you need to - Adding A Bill. Set the category accordingly. IN this case it would be Mortgage Arrangement Fees, but other fees may go in to different categories. Assign the bill to a loan using the Loan field that comes up at the bottom of the screen.
Tick This Expense is Paid. Set Paid From to be Mortgage and Loan Capital
Press Save
The Outstanding Amount on the Mortgages page will now reflect the total amount borrowed, while the amount in the bank account (or Suspense account) will reflect what was actually received.
*NOTE - If the fees are not added to or deducted from the loan value amount then simply add a bill (Expenses > Bills) > assign the category accordingly > set it to the relevant loan and pay it from the Mortgage & Loan Capital account.
Example.
Mortgage: £60,000
Fees: £500
Amount received: £59,500
Firstly, enter the mortgage and set the loan amount to be the amount that was received in to the bank account or paid to the solicitor (£59,500).
Add a bill for the fees (£500). Use this article if you need to - Adding A Bill. Set the category accordingly. IN this case it would be Mortgage Arrangement Fees, but other fees may go in to different categories. Assign the bill to a loan using the Loan field that comes up at the bottom of the screen.
Tick This Expense is Paid. Set Paid From to be Mortgage and Loan Capital
Press Save
The Outstanding Amount on the Mortgages page will now reflect the total amount borrowed, while the amount in the bank account (or Suspense account) will reflect what was actually received.
*NOTE - If the fees are not added to or deducted from the loan value amount then simply add a bill (Expenses > Bills) > assign the category accordingly > set it to the relevant loan and pay it from the Mortgage & Loan Capital account.
