Best Practice: Monthly Recurring Loan Payments

travis88travis88 Member Posts: 15

This is more of a best practice guidance question as opposed to a potential technical limitation (although, there is one point regarding technical limitations).

Desired Outcome

I have various liability accounts that represent loans that have a known and recurring monthly payment. These need to be recorded as a transfer transaction within the main accounting panel whereby a transfer of funds from a cash asset (bank account) to the liability (loan) occurs.

  1. I would like to better know exactly how many uncommitted funds are in the bank account at any given point.

Best Practice Guidance

At present, I have an external spreadsheet that lists all recurring loan payments with the associated amount and day of the month. I will then set reminders in my calendar a few days prior to go and manually create transactions in Wave for each of these "transfers." However, this is time-consuming, and it doesn't give great insight into actual available funds.

I have thought above the below, but I'm not so sure this is the best approach;

  • At the beginning of each month, preemptively create ALL of the loan payment transactions in Wave on the associated date in the future (just for that month).
  • This will make the balance shown in the header of the accounting panel represent the uncommitted funds for this period, although, not accurate for the exact point-in-time, as the transactions are future dated (however, for my case, that might not be an issue).

Is there a better method of doing this? I know this is obvious or trivial -- but when you have multiple liabilities with significant outflow, it would be nice to have insight at a glance.

Technical Limitation

It appears there isn't any way to create an automatically recurring bill or repeating transaction, such as the case of this loan payment.

Comments

  • AlexLAlexL Administrator Posts: 1,529 admin

    Hi @travis88 . In all honesty, it seems like you've thought up a smart option for this. Although we don't have the recurring bills function, you can duplicate a Bill and change any of the necessary information which should make it easier for you to create similar bills for different months.

    I'm not sure that I can advise on a better method, although it seems like your method would work rather well.

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