Term Borrowings/Loans

Debts & Investments module enables you to set up financial instruments.

The general setup must be performed beforehand.

Input

1. To enter term transactions, select the type Term Borrowing or Term Loan in the Entities menu. The list of the potential transactions appears.

2. Click the Create button. In the form which opens, the information to be entered is grouped in dedicated tabs.

3. Complete the general tabs considering the following elements.

Specifics

The Principal tab is specific to the term transactions.

It enables you to define the date from which the principal is repaid, the periodicity to apply: Month, Two Months, Quarter, Six Months, Year, as well as the position Prepaid Interests paid at the beginning of the period. (beginning of the period) or Postpaid Interests paid at the end of the period. (end of the period).

The Fictitious Length and the period number differ from those defined in the schedule. It determines the principal amount repaid per maturity. The amount for the last maturity corresponds to the difference from the initial principal.

The First Date field is pre-filled independently of the flows positioning, Prepaid or Postpaid.

The repayment frequency for the principal may be different from that applied to the interests.