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The Variable Interest Bank Loans reconciliation lets you record the details of one or more bank loan agreements, calculate the movement on each loan, and track future repayments. It is particularly useful where interest varies across periods and the fixed Bank loans account template is not practical.
Table of contents
Adding loans
Use the # functionality to pull the relevant bank loan nominal accounts into each loan. You can group several nominal codes under one loan, or create several loans each with one or more codes. Add a Description for each loan.
Loan reconciliation
For each loan, complete:
- Bank name – the bank that granted the loan.
- Mortgage detail – any relevant detail where the loan is a mortgage.
- Closing balance per statement – the balance per the statement at the period end (a supporting statement can be attached).
- Opening balance – the balance at the start of the period.
- Loans issued – amounts advanced by the bank in the period.
- (Repayments) – repayments made in the period.
- Interest – interest charged in the period.
- Closing balance – calculated automatically (opening balance + loans issued + repayments + interest). When it agrees with the loan nominal account(s), the reconciliation indicator turns green.
Explaining a closing balance difference
This applies to book years ending on or after 31 August 2023.
If the calculated Closing balance differs from the Closing balance per statement, an Explanation of closing balance difference row appears where you can describe and value the difference. This is followed by a Balance after explanation line, which reconciles once the remaining difference is nil.
Future repayments
- Cash (repayments) committed to make next year – estimated repayments due within 1 year.
- Proportion of cash repayment estimated to be interest for next year – the interest element; the template derives Capital (repayments) < 1 year from these two figures.
- Cash (repayments) committed to make next 4 years – estimated repayments due in years 2–5.
- Proportion of cash repayment estimated to be interest for next 4 years – the interest element, used to derive Capital (repayments) Years 2–5.
These figures produce the Due < 1 year, Due 2–5 years and Due > 5 years analysis, with the figure due in more than 5 years balancing to the closing balance.
- By instalments / Not by instalments – split the amounts payable, where applicable.
Summary
The Summary of Variable Interest Bank Loans template automatically consolidates all values entered above (opening balance, loans issued, repayments, interest, closing balance, the maturity analysis and the instalment split) across every loan.