Forecasting Loans

Using FUTRLI advanced options we can create new Loans and enter payments for existing ones.

Written by Ross MacLeod


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Now you can quickly and accurately forecast loans using our new Loans forecasting wizard. You can click here to find out more about it!


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Using FUTRLI’s Advanced Options we can create new Loans and enter payments for existing ones.

Paying off a Loan

In this example we have an outstanding loan of £15,000 which we will be paying off monthly in increments of £1,000. Therefore we need to create a Forecast Item against our Loan Line to forecast our projected loan repayment. To do this we’re going to be using the Single/repeating entry method and FUTRLI’s Advanced Options to change our Forecast Item from a debit to a credit.

*Note* This guide presupposes you already have a line in your Chart of Accounts denoting the outstanding Loan liability. 

We first need to navigate to the Liabilities section of our Chart of Accounts, which contains the Loan line we’re going to be entering a repayment for. Pressing the + button adjacent to the Loan line allows us to enter a new Forecast against the line:

Screen Shot 2017-01-18 at 09.26.26
 

The Single/repeating entry method is already selected by default, so now all we need to do is rename our Forecast Item to something pertinent and then enter our Forecast details. First, we’re going to change the name of our Forecast Item from Loan (900) forecast to Loan Repayment, so that we have clear visibility over what is being forecasted. Then in our Amount field we’ll enter £1000, 0 GST/VAT and 0 Credit terms, and select our Start date for our forecasted repayment. We then set our Forecast to repeat on a monthly basis, ending after 15 occurrences:

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After entering our Forecast, we now need to select Advanced Options in order to change our entry from a debit to a credit. Otherwise our Forecast will increase the amount of debt owed on the Loan line rather than decreasing it:

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Our Forecast is now complete. Pressing Save Changes will add our loan repayment to our Forecast and cause our Scenario to update accordingly. Now if we look at our Balance Sheet, we can see our Loan being reduced month-by-month by £1000:

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Forecasting a new Loan

In this example, we want to forecast taking on a new loan of £10,000. To do this we’re going to be using the Single/Repeating Entry method, but first we will need a Chart of Accounts line in our Liabilities to reference the Forecast against. If you don’t have one already you will need to create one. If you are using Xero or Quickbooks, simply create a new Loan line in your Chart of Accounts and then sync your Organisation with FUTRLI. The new Chart of Accounts Line will now appear in your Scenario. If you are using a Manual organisation, enter your new Chart of Accounts Line in your CSV and then upload it into FUTRLI.

Once present, the next step is navigating to the Loan Line. Pressing the + button adjacent to the Loan line allows us to enter a new Forecast against the Line:

Screen Shot 2017-01-18 at 10.05.52

 

The Single/Repeating Entry method is already selected by default, so now all we need to do is rename our Forecast Item to something pertinent and then enter our Forecast Details. First, we’re going to change the name of our Forecast Item from Loan (900) Forecast to New Loan, so that we have clear visibility over what is being forecasted. Then in our Amount field we’ll enter £10000, 0 GST/VAT and 0 Credit terms, and select our Start date for taking on our new loan:

Screen Shot 2017-01-18 at 10.07.55

If we now press Save, we’ll see our new Loan represented on our Balance Sheet:

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