Manage loans as accounts with a negative balance
Overview
FA has two ways to manage loans in a investment portfolio:
A loan is a bond type of security whose interest is treated as negative coupons
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.
2. Add loan to the portfolio
3. Calculate / Add loan interest
If you get interest payment transactions from custody, record these in the portfolio. If you want FA to calculate interest, see Calculate account interest.
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 the normal "Cashflow in" type.