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. Detailed written instructions can be found below.
Step 1: Create a Debt Class
From within the relevant Project, select the Classes tab.
Select the New button to create a new class.
Add any name and select Debt under Class Type.
Step 2: Add a new Position
From the Positions tab, select New Position.
Select the relevant Account 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.
Click on the newly added Position. Note: searching in the Account column will help find the relevant account.
Step 3: Add a Promissory Note
From within the Position, click on New Transaction and select Promissory Note.
Step 4: Complete Promissory Note Details
Complete the Main Properties from the first page presented.
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.
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.