How do I manage a long-term loan or mortgage in Clubtreasurer?

About Loan/Mortgage Repayments and Expenses

• Only the interest portion of a loan payment should appear in your Profit & Loss / Income Statement as "Interest Expense*". You may also be able to expense any loan arrangement fee*, if applicable.
  • *You may need to create new Payment Cost Codes if these do not already exist. 

• Repayments of loan/mortgage capital will reduce your capital balance owed ('Long-term Liability') and should be reflected in your Balance Sheet. These are not normally considered as an expense and so should not be included in your Profit & Loss / Income Statement. 

• If you are using Clubtreasurer to manage your fixed assets please also review the Fixed Assets tutorial pages to learn how to manage your property fixed asset(s) that are associated with the mortgage.

To create a Loan (Cash Received)

1. Create a new Account (Setup > Accounts > New Account):
   • Name: "Loan' (or any name)
   • Account Type: LONG TERM LOAN
   • Opening Balance:
     • If this is a new loan in this year's accounts, enter £0 and go to step 2. 
     • If you a bringing an outstanding loan balance into Clubtreasurer:
       • enter loan balance as a negative value, e.g. <-£20,000> (NB Your opening Bank/Cash Account balances should also reflect the loan monies received).
       • Go to step 3.
2. Record initial loan balance as an Account Transfer (Transfers > Account Transfers > New Account Transfer)
   • FROM Loan A/c => TO your cash/bank A/c
   • This creates the opening loan balance and records the fund deposit into your cash/bank account(s)
   • The initial loan balances will be reflected in your Balance Sheet under Assets (cash/bank account(s) and Long-term Liabilities (Loan)
3. Record loan interest payments as normal Payment transactions from your cash/bank A/c (Receipts & Payments > New Receipt/Payment)
   • These will be charged to your P&L.
4. Record loan capital repayments as an Account Transfer:
   • FROM cash/bank A/c => TO your Loan A/c
   • These will reduce your cash/bank account balance(s) and the remaining loan capital amount (long-term liability)
   • The capital repayments will be reflected in your Balance Sheet only.

To create a Mortgage:

1. Create a new Account (Setup > Accounts > New Account)
   • Name: "Mortgage' (or any name)
   • Account Type: LONG TERM LOAN
   • Opening Balance:
     • enter mortgage amount as a negative value, e.g. <-£300,000>
     • Go to step 3.
       

1.  
2. Record your interest payments as normal Payment transactions (Receipts & Payments > New Receipt/Payment)
   • These will be charged to your P&L.
3. Record mortgage capital repayments as an Account Transfer (Transfers > Account Transfers > New Account Transfer)
   • FROM cash/bank A/c => TO your mortgage A/c
   • These will reduce your cash/bank account balance(s) and the remaining mortgage amount (long-term liability)
   • The capital repayments will be reflected in your Balance Sheet only.