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Pay or receive principal and interest

Split an actual payment and optionally allocate instalments.

You decide how much of a payment is principal and how much is interest. No average interest amount or principal portion is inferred.

Step by step

1Open the loan and choose Add a loan transaction. Select Principal and interest paid or received, the actual posting date and bank account.
2Optionally choose an instalment: the remaining principal and interest are copied and allocated to that instalment together. Adjust the amounts once for a partial payment. Without an instalment enter principal and interest yourself. For example: €250 principal and €150.01 interest makes a €400.01 payment. A €30,000 loan balance falls to €29,750; interest is posted as expense or income.
3Does the repayment exceed the recorded loan balance? Check whether the money borrowed or lent has already been posted to the loan account or included in the opening balance. Also check the posting date. Registering a loan and instalment schedule alone does not create a loan balance.
4Was part of the interest already accrued? Enter that part under Previously accrued part of interest. It is released from the interest balance account without recording expense or income again.
5Paying several instalments in one payment? Leave the single instalment choice empty and use Allocate instalments to split the payment. Extra repayments without an instalment are also possible.
6For a foreign currency enter a rate or total converted amount for principal plus interest. The posting also records the exchange difference on the repaid loan. Amount on the bank account is the total you pay or receive. For €600 principal and €4 interest it is €604. Leave this field blank when the bank account currency matches the loan or your administration; the total is calculated. Enter the actual bank amount only when the bank account uses a different currency from both.
7Check the posting preview and save. From a bank entry choose Other processing, Loan: principal and interest for the same processing. You can link an existing posting at Bank as a Loan transaction; this does not create another posting.
8Editing keeps the same loan transaction and journal entry records. Deletion clears amounts and allocations, retaining minimal deletion data and audit. Remove a bank link first. A closed fiscal year or a later repayment invalidated by the change prevents the change.