Manage loans as accounts with a negative balance
Overview
FA has two ways to manage loans in a investment portfolio:
A loan is a bond type of security whose interest is treated as negative coupons
A loan is a negative balance in the account
This document describes how to handle loans as accounts with negative balance.
A loan is a negative balance in the account
1. Add a loan account
Add a loan as an account.
If you want calculate interest in FA define the calculation parameters, read more from here: How to calculate account interest
2. Add loan to the portfolio
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3. Calculate / Add loan interest
If you get interest payment transaction from custody, record these to the portfolio. If you want FA to calculate interest, read the instructions from here: How to calculate account interest
4. Add loan repayments
Same way as the original borrowing: if you want to take money out from the bank account use internal transaction types ( (Internal)) if only to record loan repayment, use “normal“ Cashflow in type.
