Cannot merge matched transaction with journal entry

captbrandocaptbrando Member Posts: 2

Folks:

I have an asset-based business where I own an asset that is rented out and I receive a settlement statement each month from the management company. I record this through a journal entry to record each month's performance. I've connected my bank accounts, and I end up with all these duplicate entries. As an example, I record an entry on the loan I pay. Some $ to Principal that debits loan balance (liability) and some $ to interest expense (debit). Then on the other side is a credit for the entire amount to the bank account. When the transaction comes in from the bank records, I get a new transaction that I cannot attach or merge with the journal transaction, which means that I have to essentially delete every transaction that comes in from my bank.

I've also connected to the bank that manages the loan, so it hits me THREE times (I can't merge those transactions together or merge both with the journal entry to show where this stuff is coming from).

Thoughts?

Comments

  • MikegMikeg Member Posts: 255 ✭✭

    cpatbrando,
    Here is how I handle loans on the books for my clients. The gross loan payment coming through the debit of the checking account gets applied against the loan balance (liability). A journal entry is made to move the interest part of the payments to expense. I create a loan amortization schedule in excel so the balance of the loan can be tied out at year end. We do not connect the loan account directly to the lender. Hope that helps.
    Mike G, CPA
    www.mgfinancial.net
    Premium Service Without The Premium Price

  • captbrandocaptbrando Member Posts: 2

    Gotcha. ok. Thanks.

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