We will walk through the process using an example:
We purchased a car for CZK 605,000 using a long-term loan. The total loan amount is CZK 500,000, and it is a 5-year loan, which equals 60 installments.
Recording the loan and paying the invoice
We have received an invoice for the purchase of the car. We will record it in the Purchases - Received Invoices menu and post it in the standard way to asset acquisition:
In the bank module, we will post the receipt of funds from the bank loan. We will not match this document — we will simply post it as 221/461:
The invoice can be added to a payment order via Money - Payment Order, and then matched with the bank payment, which we post in the standard way as 221/321:
Recording loan or lease installments
There are several ways to record loan installments:
1) Recording via the Bank module — combined
If you do not want to record installments in the Accounting - Other Liabilities menu, you can simply post loan installments in the Bank module by creating a bank document with a single line that combines the principal repayment and interest:
At the end of the year, you then create an internal document in the Accounting - Internal Documents menu, where you repost the interest amount from account 461 to account 562:
2) Recording via the Bank module — separately
The second method is based on the same principle as the previous example, except that the principal and interest installments are recorded separately each month:
We would therefore enter two line items: the first line for the principal repayment posted as 461/221, and the second line for interest posted as 562/221.
3) Recording via Other Liabilities
The last method is the most demanding but also the most transparent, and it is particularly well-suited for lease payments. Individual loan installments are recorded in the Accounting - Other Liabilities menu. You can prepare them in advance and then simply match them with bank payments. You can either create these liabilities manually — for example, by copying a document (you will need to adjust the principal/interest amounts) — or you can prepare an Excel spreadsheet and import it into Flexi via Tools - Import - Import from Excel - Other Liabilities.
The other liability is entered in a similar way to the bank document in the previous example — that is, as line items: the principal repayment (461/325) and the interest payment (562/325). These liabilities are then matched with the bank installment payments, where only the total installment amount is posted as 325/221:
