Loan principal vs interest split

's Avatar

graham.cummins

25 Mar, 2015 01:44 AM

Hello!

I recently became aware of the fact that my loan accounts were not automatically splitting the principal and interest payments. As such, all of my payments have been taken entirely off of the principal and not accounting for the portions of those payments going towards interest payments.

I have found answers to similar issues about setting payment reminders to help with the splitting and have set that up to try going forward, but is there anyway to retroactively have MD calculate the split on my previous payments?

Just hoping I don't have to go through and manually calculate the splits, but I fear that is the answer that's coming!

Thanks for your help,

Graham

  1. Support Staff 1 Posted by Tom Freeman on 25 Mar, 2015 07:29 PM

    Tom Freeman's Avatar

    Which version of MD 2015 are you using? (help > about Moneydance) We are currently on build 1182, you can download that here : http://infinitekind.com/preview

    Can you please attach a screenshot of your loan page. Moneydance should have been splitting the interest and principal. If there was a mistake in the loan set-up we should be able to edit the loan and get the correct split retroactive.

    Tom Freeman
    Infinite Kind Support

  2. 2 Posted by Graham Cummins on 27 Mar, 2015 02:01 PM

    Graham Cummins's Avatar

    Hi Tom,

    I've attached the screenshot. I just updated to the latest version of MD in
    the midst of trying to sort the issue out.

    On the right sidebar, it seems to be calculating interest, but when I put
    the transaction in from my chequing account each month, the split doesn't
    happen automatically.

    Let me know if you need any more info!

    Thanks,

    Graham

  3. Support Staff 3 Posted by Tom Freeman on 03 Apr, 2015 07:31 PM

    Tom Freeman's Avatar

    Graham

    When setting up a loan account its best to use a transaction reminder to create the split transaction. If you are manually sending a transaction from the bank to the loan account you have to put the split in.

    To fix this from the loan account, go to account > edit account. You will see the account info box. Just click ok. You will be prompted to place the funds in an account click no. You will then be prompted to create a transaction reminder. Click yes then fill in the reminder box. Set the reminder start date to the beginning of the loan and toggle on the auto commit.

    Then you can sort by description and delete the original non split transactions.

    Tom Freeman
    Infinite Kind Support

  4. 4 Posted by jonh on 03 Apr, 2015 08:25 PM

    jonh's Avatar

    To: Support

    Chiming in on this topic I would like to point out, and supposedly there is a ticket on this but who knows since we cannot review tickets, if a reminder is set up for a mortgage payment, quite often there is also other deductions in that payment split. Commonly, in addition to P&I you may find deductions for property taxes, insurance payments, etc. - aka mortgage escrow acct payments.

    However, on at least an annual basis it is common for the escrow payment to change, thus the total payment changes. There is currently no way to save these changes to a reminder transaction and every one of the future reminder transactions must be edited.

    The fix offered me a few years ago was to delete the reminder and recreate it. Not elegant.....

    Please check if this is still an open ticket and maybe you can move it up the queue. It's quite annoying. Otherwise, I'd like to see the ticket recreated.

    And if it has been fixed, in which build was that?

    jon

  5. Support Staff 5 Posted by Tom Freeman on 03 Apr, 2015 08:38 PM

    Tom Freeman's Avatar

    I am using MD 2015 build 1188 and MD 2014 build 980, I was able to edit the loan to change the escrow amount and both builds updated the reminder to the new escrow amount.

    I am not sure when this was fixed.

    Tom Freeman
    Infinite Kind Support

  6. 6 Posted by jonh on 03 Apr, 2015 08:54 PM

    jonh's Avatar

    Doesn't work for me. Can you tell me exactly how you are doing that? When I modify the escrow entry on the reminder it doesn't 'stick'.

    "Starting Moneydance 2014.5 (980) at Fri Apr 03 10:38:31 PDT 2015"

    What am I doing wrong that it works for you and not for me?

    Thanks, jon

  7. Support Staff 7 Posted by Tom Freeman on 03 Apr, 2015 09:20 PM

    Tom Freeman's Avatar

    The steps i followed were to be in the loan account then selected Accounts > Edit. The loan set up page now opens. I just edit the escrow amount then click OK. Then i go to the reminders window and use the edit reminder button to open the reminder to confirm the change.

    Tom Freeman
    Infinite Kind Support

    Tom Freeman
    Infinite Kind Support

  8. 8 Posted by jonh on 04 Apr, 2015 01:20 AM

    jonh's Avatar

    Tom:

    That approach worked for me. It seems a bit unintuitive to me (I don't recall ever looking at the acct dialog for loans) but I guess that is the way it has to be. Hope I remember this next year when they change my payment again :-)

    Thanks very much for this explanation.
    jon

  9. Support Staff 9 Posted by Tom Freeman on 05 Apr, 2015 06:53 PM

    Tom Freeman's Avatar

    The reminder is pegged to the loan set-up. The information on the loan page takes precedence to the information on the reminder. Editing a reminder just changes the month you edit it. Editing the loan changes the ongoing payments which the reminder is based on.

    Tom Freeman
    Infinite Kind Support

  10. System closed this discussion on 19 Mar, 2016 04:57 AM.

Comments are currently closed for this discussion. You can start a new one.

Keyboard shortcuts

Generic

? Show this help
ESC Blurs the current field

Comment Form

r Focus the comment reply box
^ + ↩ Submit the comment

You can use Command ⌘ instead of Control ^ on Mac