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Manage loans as accounts with a negative balance

Overview

FA has two ways to manage loans in a investment portfolio:

  1. A loan is a bond type of security whose interest is treated as negative coupons

  2. 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

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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

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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.

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