Overview
Castaway Cloud does not currently have a dedicated Loans Receivable element type. The recommended approach is to use an Other Asset/Liability (OAL) element, which provides the flexibility to model loan capital advances, interest income and repayments accurately across your three-way forecast.
Recommended Method
The Other Asset/Liability (OAL) element is the most appropriate way to model a loans receivable in Castaway Cloud:
- Map your loan receivable account as an Other Asset/Liability element in the chart of accounts.
- Set the GST rate to zero.
- Set the Account Type to Current Asset or Non-Current Asset depending on the nature of the loan.
- Enter the interest income in the Enter Revenue line.
- Set the Receipts Method to Enter Receipts and enter loan repayments in the Cash Receipts line for the relevant months.
- To increase the loan capital, set the Payment Method to Enter Payments and enter the amounts in the Cash Payments line for the relevant months.
If you need any assistance please contact our support team at: support@castawayforecasting.com