Recurring entry for monthly loan payments where principal and interest distributions determined from amortization schedule

  • 25 May 2023
  • 1 reply

Userlevel 1

Situation - a business has a long term loan, a mortgage loan, where the monthly payment is fixed and the split between principal and interest varies each month based on the mortgage amortization schedule. The monthly loan payments to the lender are set up to be made via PAD direct from the company bank account.

I can create the first monthly mortgage payment as a journal transaction and then create a recurring transaction from the journal transaction.  Generate recurring transactions will create the monthly payment journal transactions, but only the 1st payment will be correct. The finance user will need to edit the 2nd and future journal transactions and correct the principal and interest distribution amounts manually, according to the amounts from the amortization schedule.

Is there a better way to configure this?

I suppose the Balanced 1st journal transaction could be exported to Excel and the future monthly payment transactions be added into the Excel sheet with the correct split between principal and interest. Then, open the future periods and import the transactions as future period journal transactions. Finally, deactivate the future periods. The future period transactions will remain as balanced and can be released in future periods as they are opened.

It would be nice if the recurring transaction could use the amortization schedule as a source for future GL account distributions.  Something to add to the Idea topic section.


1 reply

Userlevel 2


I take my yearly interest cost and divide over the year equally.  its not perfect, but it balances at the end.  Then on a yearly basis I review my transactions, tie off to statements/loan balances and re-adjust my recuring transactions for the upcoming year. 




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