Aristotle Support

Why are repayment and/or forgiveness transactions itemizing on an Outstanding Loan/Debt/Obligation Schedule?

Article ID: 599
Last updated: 22 Dec, 2009

If there is a schedule for outstanding loans or liabilities, you might notice an itemized transaction that is either negative or represents a child transaction of the outstanding obligation. You might be wondering why these transactions are showing up when you should only be seeing unpaid bills or outstanding loans.

This is the result of incomplete data entry. In these cases, the itemized child transaction is not properly linked to the parent obligation. Without a linked parent obligation, the child itemizes by default.

For example: If you received a bank loan and made a single repayment on that loan, both transactions will appear on an outstanding loan schedule unless they are linked. If they are linked, then the loan repayment will not itemize and it will be counted toward the outstanding balance of the bank loan. Which is what you most likely want to see.

What are parent/child transactions? Let's consider a loan as an example parent transaction. You receive a bank loan for $1000. Child transactions are any transactions that affect the status of the parent, in this case the $1000 loan. Loan repayment and loan forgiveness transactions change the outstanding balance of the parent and are thus child transactions.

This article was:   Helpful | Not helpful Report an issue


Article ID: 599
Last updated: 22 Dec, 2009
Revision: 1
Views: 493
Prev     Next
Compliance Q&A       Troubleshooting: Partnership memos not displaying