Guide 04
Posting interest to Xero
The Post page shows the interest due on every loan in the organisation, lets you see each journal before it goes, and posts them all to Xero in one go.
Posting, step by step
- Open Post.
- Set Post Up To, the last day to post interest up to. This is usually the last day of the month. It can be up to 30 days after today.
- Loanbooq lists each loan with the interest due. Untick any loan you want to leave out, or search for one.
- Click a loan's name to see the whole schedule: each journal that will go to Xero, its lines and its narration.
- Choose Post as Draft or Approved, then post.
- The result shows on each row, and every post is recorded in Post History.
Draft or approved
- Draft: the journals wait in Xero's manual journals as drafts. Review them there and post them yourself.
- Approved: the journals go straight into the books.
What the journals look like
Loanbooq posts a manual journal for each month of interest. For a loan you made, it debits the loan account and credits the interest income account. For a loan you received, it debits the interest expense account and credits the loan account. Each line and the narration read "Interest" and the month, so your income statement stays short and clear. If the loan has a tracking option, every line carries it.
Journals are posted with no tax.
No month is posted twice
Before anything goes to Xero, Loanbooq checks what is already posted for each loan. If interest for a month is already posted, Loanbooq stops and tells you who posted it.
After a reference rate change
If the reference rate has moved and some linked loans are not yet on the new rate, the Post page warns you. Apply the new rate first, then post. See Reference rates and prime.
Loans that cannot be posted yet
A loan is held back, with the reason shown, when for example:
- it has no interest account, or no account in Xero;
- its history could not be read from Xero;
- an earlier month is still unposted, so the months would go out of order;
- a post on record was voided or removed in Xero;
- posting would take it over its loan limit.
Put the reason right and the loan is offered again.