How do I record a loan given to an employee/business?

There might be cases where you would have given a loan to one of your employees or to another business. To record such transactions in Zoho Books, you must first create an account to record your loan. Here’s how:

Go to the Accountant module on the left sidebar and select Chart of Accounts.
Click + New Account on the top right corner of the page.
On the Create Account page, enter a suitable Account Name (say Asset Loans).
Select Other Current Asset as the account type from the Account Type dropdown.
Enter the Account Code and write a short description for the account, if required.
Click Save.

Next, to record the loan given as an expense:

Go to the Purchases module on the left sidebar and select Expenses.
Click + New on the top right corner of the page.
Select Expense Account (Asset Loans in this case).
Click the dropdown in the Customer Name field and select the employee or business receiving the loan.
Enter the other necessary details and click Save.

If you’ve received a payment for the loan, you can record it in Zoho Books. Here’s how:

Go to the Banking module on the left sidebar and select the account in which you received the money.
Click Add Transaction on the top right corner of the page and select Deposit From Other Accounts under Money In.

Select Deposit From Other Accounts under Money In

In the pane that appears, select the From Account as Asset Loans.
Fill in the details of mandatory fields like Date*,* Amount*,* and From Account*.*
Click the Received From dropdown and select the employee or business repaying the loan.
Click Save.

You can view the loan details by creating a custom report. Here’s how:

Go to the Reports module on the left sidebar.
Select the Account Transactions report in the Accountant section.
On the Account Transactions report page, click Customize Report in the top left corner of the page.
On the Customize Report page
Click + Add Filters in the Advanced Filters section of the General tab.
Select Account from the Select a field dropdown, is in from the select a comparator dropdown, and Asset Loans from the Select Account dropdown.

Go to the Show/Hide Columns tab.
Under the Available Columns section, click the + button next to the Contact field to add it to the Selected Columns section.

Click Run Report.

You can view the loan details like the amount given as a loan, the amount repaid, the name of the employee or business receiving the loan, etc.

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