Credit Cards and Loans

PROBLEM

using Ledger to handle:
loans, visa or master charge or amex accounts, morgages, equipment loans, charge cards, debit cards, notes, liabilities, line of credit

DIAGNOSIS

client wants to keep track of VISA accounts, loans, etcetera in MacNail accounting software. With or without job costing.

SOLUTION

To start: Set up a Ledger for each separate account-- VISA, loan, etc.

for credit cards etc: enter money spent as pay outs, payments on account as deposits. Payment on account can be given no job cost #, or treat it as job 99, TF (transfer) category-- in both the VISA deposit line, and the checkbook ledger payment line.
for notes, loans, mortgages, line of credit: enter loan amount as a payout (will give negative balance). Enter each month's accrued interest as a payout. Enter each loan payment as a deposit.

NOTE: debit cards can be handled within the checkbook ledger, as per accounting manual p. 74. If money is deducted directly from account, it's a debit card. If they are billed monthly and write a check for it, it's a credit card.

NOTE: they'll job cost from the loan ledger just like from any other ledger-- if something is job costed from a Log, they'll need to enter it there no matter how it's paid, and don't need any particular job cost info in the Ledger. If job costed from a Ledger, enter job cost info there just as they'd do in the checkbook in MacNail Construction Accounting Software.

COMMENTS

Entered 3/15/95 by Dennis.