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Bank loans for Cash Flow reporting

In KEY Accounts any Cashflow report will add all the Bank balances together to show the TOTAL SUM of cash in ALL Bank Accounts; so transferring money from the Current account to a Loan account to repay that loan will not affect the TOTAL CASH in all accounts.

If you are only interested in showing the Current Account Bank in Cash Flow Reports and want to see the repayment of the loan reducing the balance in the Current Account you need to set up a new Nominal in the Liabilities Group called Bank Loan.

To “move” the loan amount from the Loan bank account to the Bank Loan Nominal enter a Bank Receipt to the Loan bank account coded to the Bank Loan Nominal (in this example 2005)

To repay the loan enter a Bank Payment to the Bank Loan nominal (2005)

To add interest to the loan enter a Journal Nominal to debit Bank Interest

and Credit Bank Loan.

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