Year end
Short answer
A loan repayment can only split correctly when Balansix has the agreed opening principal and enough schedule and interest information to distinguish capital from finance cost.
What to check first
Work through these before changing the accounting recordConfirm the correct loan account and opening principal.Check repayment amount and payment frequency.Review interest rate and terms and any fees where relevant.Check whether the bank payment has been matched to the loan workflow rather than coded wholly to loan capital.Compare the Balansix schedule with the lender statement.
Why this happens
The bank sees one cash payment, but the accounts often need two components: reduction of the liability and finance cost. A schedule provides the evidence for that split and the remaining principal.
Steps to resolve it
- Open the loan and finance schedule and verify the brought-forward balance.
- Enter or review the contractual repayment information.
- Match the bank payment to the relevant loan repayment.
- Review the calculated capital/interest split against the lender evidence.
- If a difference remains, post the documented schedule correction through the controlled loan workflow.
What to avoid
Keep the audit trail intact. Do not code the entire repayment to interest or capital just because the bank line contains one amount. Use the lender evidence and loan schedule.
Frequently asked questions
Why does my bank payment not equal the loan balance reduction?
Because part of the cash payment may represent interest or fees rather than repayment of principal.
Can the loan schedule start with an opening balance?
Yes. For an existing loan, bring in the agreed principal and supporting terms so future repayments can continue from that position.
What if the lender statement differs from the schedule?
Investigate timing, fees, rate changes or opening data and document any correction needed to bring the accounting schedule to the lender evidence.