Setting up a loan as an asset

Samvet

New to Simplifi…I'd like to set up a loan as an asset. I've loaned money to a person and want to add the total amount of the loan (say $10,000.00) as an asset. That's easy enough to do as a manual account.

But I'd like to take each monthly payment from the person and split it into: 1: interest on the loan as reportable income and 2: Move the principal amount to the asset account thereby lowering the asset value.

So…$10,000.00 loan to Mr. X…He pays me $1,250.00 ($1,000.00 to principle and $250.00 interest)…Split this income so $250 goes to an "Income: Earned Interest from Loan" and $1000 going to the loan asset of $10000…that lowers the asset to $9,000.00 (The new value of the outstanding loan since I now have the $1000 principle setting in my checking account.

Is there a way to do this???

Thanks in advance for any help,

Sam

RobWilk

You can do splits, but if you don't want the whole split to count towards the transaction, you'd want to possibly set that portion of the split to "Transfer to [account]" where it can be an account that collects that interest, another manual account. IF it's not a transfer, it will credit the full split to the transaction (the account the transaction is in).

I haven't done it, but that's probably how i would do it.