This article will provide detailed written and video instructions by walking you through all of the steps required to add Debt Positions to your Project (from creating a Debt Class to issuing Promissory Notes).
Table of Contents:
Step-by-Step Instructions:
Part 1: Create a Debt Class
Step 1. From within the relevant Project, select the Classes tab.
Step 2. Select the 'New' button to create a new class.
Step 3. Add any name and select 'Debt' in the 'Class Type' drop-down menu.
Part 2: Add a new Position
Step 1. From the 'Positions' tab, select '+New Position'.
Step 2. Select the relevant 'Account' from the drop-down menu and click 'Create Position'.
NOTE: If the Account does not appear in the drop-down, it already has a Position in the Project and this step can be skipped.
Step 3. Click on the newly added 'Position'.
TIP: Searching in the Account column will help find the relevant account.
Part 3: Add a Promissory Note
Step 1. From within the Position, click on the blue '+New Transaction' button, then select 'Promissory Note'.
Part 4: Complete Promissory Note Details
Step 1. Fill in the Main Properties details in the pop-up box:
Date: The inception (start) date of the debt.
Debt Class: Select the newly added Debt class
Amount: Enter the amount of principal.
Interest Rate: Specify the percentage interest rate.
Term: Select between three options for the term of the note: Maturity Date (specific date), Term (number of months), or Indefinite (ongoing).
Rounding Method: specify the rounding method to be used.
Step 2. Click on Accrual and Compounding and select between Day Count Basis, Amortization Schedule (I/O), and Flat Rate to define the accrual method, which will prompt you to complete the final details. Once complete, select Create Promissory Note.
NOTE: If you would like to pay back the notes interest in regular even payments that do not deviate, you can set up the Amortization Schedule.
If you may be paying back interest where even one payment may be larger or smaller than the rest of the payments, choose a Day Count Basis option.
Video Instructions:
This video will walk through all of the steps required to add debt positions to your Project from creating a Debt Class to issuing Promissory Notes.