Loan to friends and family etc

JohnJBloomfield's Avatar


31 Jul, 2013 08:28 AM


If I make a loan to a friend or family member (no interest charged) what is the best way to document it within moneydance so that;

a) I can record the repayments which are often in stages
b) See an outstanding balance and history of repayments
C) still have my net worth calculate correctly

In the past I have used a custom category to keep track but I now have quite a few people owe me money and I need something simpler - I was thinking about using an Asset Account but not sure how to document the money going from my current account to the asset out as the loan and then back as repayments come in without messing up my Net worth figures - advice please?

  1. 1 Posted by JohnJBloomfield on 31 Jul, 2013 10:59 AM

    JohnJBloomfield's Avatar

    I was over thinking this one sat with a pen and paper for two minutes and solved it myself! Thought I should post the solution for anyone else who might have the same quandary.

    1. Open an asset account with a zero balance.
    2. TRANSFER the loan amount to the Asset account - key word here being transfer in my case I had sent the money electronically to my relative so I just changed the record from category to transfer to asset account.
    3. When repayments are made I just record them as a transfer in from the asset account so the outstanding loan amount goes down and my current account balance goes up

    This is fairly simple because I'm not charging any interest - If I were I would simply have to calculate interest charges manually and add them to the asset as a transaction creating a custom category or just using bank interest.

    P.S. i also tick hide when zero balance on the set-up so when it is repaid in full it will just disappear.

    Hope that helps someone else in future.

  2. 2 Posted by Ben Spencer on 31 Jul, 2013 01:29 PM

    Ben Spencer's Avatar

    Hi John

    I'm sorry I didn't get back to your sooner.

    The process you describe is exactly how I manage such situations in my personal MD file.

    Ben Spencer
    Moneydance Support

  3. Ben Spencer closed this discussion on 31 Jul, 2013 01:29 PM.

  4. John Bloomfield re-opened this discussion on 31 Jul, 2013 02:02 PM

  5. 3 Posted by John Bloomfield on 31 Jul, 2013 02:02 PM

    John Bloomfield's Avatar

    No worries Be
    n I just needed to think it through!

  6. Ethan closed this discussion on 31 Jul, 2013 02:31 PM.

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