Microsoft KB Archive/140233

Money: Converting a Liability Account to a Loan

PSS ID Number: Q140233 Article last modified on 12-12-1997

4.00 4.00a 5.00

WINDOWS

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= SUMMARY =

This article explains how to convert a pre-existing or imported liability account into a Loan Account in Money, which helps automate the loan payment process and allows the use of special Loan reports.

= MORE INFORMATION =

A loan may have originally been tracked as a liability account or it may have been imported as a liability account. To use the automatic loan calculation, amortization, and report features, change the loan into a Loan account. If you want to have an accurate history of past payments, convert the Liability account as detailed below. If you just want to track the loan from this point forward, and are not interested in keeping the past history in the same account, then you can create a new Loan based upon the current principal balance.

Steps to Convert Your Liability Account into a Loan Account
  Create a new loan for this account:   Click Go To and click Account Manager.   Click New Account.   Select Loan from this list of account types, then click Next.   Step through the New Loan Account Wizard using the following guidelines:   Enter the payee name you used when tracking the liability account.   Choose No, payments have not been made.   The due date of the first payment should be the date of the first transaction in the liability account. </li>  The Opening Balance is the opening balance of the liability account. </li>  Select the same interest and other fees categories used in the liability account, and select or create a principal category and subcategory (such as Housing: Mortgage Principal). </li></ul> </li>  Finish setting up the loan. </li></ol> </li>  Update your past payments: <ol style="list-style-type: lower-alpha;">  In the Account Register, select the account from which the liability loan was paid (usually your Checking Account) by clicking the current account name to bring down the list of accounts. </li>  Find and select the first liability loan-payment split transaction. NOTE: If you have several transactions, you may want to use the Find command in the Tools menu. </li>  Click the Edit button and change the Category to Loan Payment. When asked about replacing the current split information with the default splits for the loan account payment, click the No button. </li>  Change the subcategory to the name of the loan created in Step 1 above. </li>  Go into the split, by clicking the Split button, and assign the principal amount to the correct category and subcategory. </li>  Repeat steps a through e for all remaining split transactions for this loan. </li>  For any payments that are not splits (such as principal only payments), edit these transactions so that the category is set to Loan Payment and the subcategory to the name of the Loan, then choose the appropriate option for the payment (for example: Apply the entire loan payment to principal). NOTE: You may have to turn off the transaction form (by clicking the View bar and clearing Transaction Form) to change the transaction from a transfer to a loan payment. </li></ol> </li>  Once all the old transactions have been changed to loan payment transactions, the old Liability account should contain no transactions and can be deleted, if desired. To delete the Liability account: <ol style="list-style-type: lower-alpha;">  Click Go To and click the Account Manager. </li>  Select the account and click the Delete button. </li></ol> </li></ol>

For more information, see your Money printed documentation or online Help.

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========================================================= Version : 4.00 4.00a 5.00 Platform : WINDOWS ============================================================================= Copyright Microsoft Corporation 1997.