Peer-to-peer (p2p) lending accounts are growing more popular, and you can easily track this kind of investment in Moneydance.
To aid in tracking these accounts, you should create a new "Subtype" of security for p2p notes.
You may wish to refer to the Security Subtypes article for more information.
- Add a new security, and set the security Type as “Other”.
- Create a new subtype named “Peer to Peer".
It's best to use the “Average Cost” method of basis calculation for these types of investments.
Create a "New Security" for each individual loan.
- The Security ID and Security Name are the identification code as set by the p2p company.
- Enter a price and the number of decimal places. All other fields can be left blank.
Then record the transfer of funds from a bank account into the investment account.
To do this you should enter a Buy transaction for each security.
When you've purchased initial shares, you'll need to track the payments received each month.
As with a traditional bank held loan, these payments are divided into principal and interest payments.
- The principle is a return of the initial loan, and is essentially a “sale” of some shares.
- The interest is income, using Xfr as the transaction type.
The complexity of investment accounts means it's not possible to create split transactions.
Each month, create two new transactions for each note you hold.
Select a transaction within the investment account.
Then right-click (Ctrl+click) to view the context menu.
Select "Create Reminder from Transaction" to create a transaction reminder.
This brings up the reminder creation interface. You may wish to refer to the Reminders section of the knowledge base for more information.
It is important that you do NOT set the reminder to auto-commit.
This is because the amount of each transaction changes from month to month.
When the reminder is “due", access each reminder from the Summary Page.
Change the amount of the transaction, and then "Record" the transaction.
You may also wish to create a reminder for any monthly fees.
This generally remains the same amount and can be auto-committed.