What is the Loans module for?
Loans is for money the business has borrowed, such as a bank term loan or hire purchase. You enter the agreement once, and Orbit Finance builds the full repayment schedule from the amount, rate, term, and interest method. It then keeps that schedule and your books in step as you pay.
How do I enter a new loan?
- Press Add a loan.
- Type the Lender and the Account or agreement no. if you have it.
- Pick the Type: Term loan, Hire purchase or Other.
- Pick the Interest method: Reducing balance or Flat rate.
- Type the Amount borrowed in RM, the Rate as a percent a year, and the Term in months.
- Set the First instalment date and the Date received.
- Check the preview card for Monthly instalment, Total interest, and Total payable.
- Leave the tickbox This loan was already running before Orbit unticked if the bank paid the money out now.
- Press Save.
How do I bring in an existing loan?
- Press Add a loan and fill in the same fields using the original amount, rate, and term.
- Tick This loan was already running before Orbit.
- Press Save. No cash entry is made.
- Go to the Opening balances screen and enter what you still owed on that loan at the start of your first year in Orbit Finance.
- Come back and record instalments from here as normal from now on.
How do I record a monthly instalment?
- Click the loan card to open it, then press Record on the row for the month you are paying.
- Set the Date paid to the day the money actually left the bank.
- Under Which months does this cover, tick the month or months this transfer pays.
- Check Late charge and overtype it with the figure on your statement if needed.
- Read the This will post box to confirm the split between principal, interest, and charges.
- Press Record.
How do I undo a wrong payment?
- Open the loan and scroll to Recorded payments.
- Press the small red cross beside the payment.
- The payment row is removed and its postings (principal, interest and any late charge) are reversed together.
- For an older payment recorded before late charges were linked, check Cash In and Out and delete any leftover Loan late charge row by hand.
- Record the instalment again with the right figures.
What this does to your books
Saving a brand new loan, with the already running box left unticked, posts Dr Cash & Bank (1000) / Cr Long-term Loans (2500). A loan that was already running posts nothing when saved; enter what you still owe in Opening balances. Recording an instalment posts Dr Long-term Loans (2500) / Cr Cash & Bank (1000) for the principal, Dr Interest Expense (7010) / Cr Cash & Bank (1000) for the interest, and Dr Bank Charges (7000) / Cr Cash & Bank (1000) only when a late charge is entered. Only the interest and late charge reach your Profit and Loss.