How can I record a loan given to an employee or business?

There might be cases where you would have given a loan to one of your employees or to another business. To record such transactions in Zoho ERP, you must first create an account to record your loan.

To create an account to record the loan:

• Go to the Accounting module in the left sidebar.
• Switch to Chart of Accounts tab in the modular bar.
• Click + New Account on the top right corner of the page.
• On the Create Account page, enter a suitable Account Name (say Asset Loans).
• Select Other Current Asset as the account type from the Account Type dropdown.
• Enter the Account Code and write a short description for the account, if required.
• Click Save.

To record the loan given as an expense:

• Go to the Purchases module on the left sidebar and select Expenses.
• Click + New on the top right corner of the page.
• Select the Expense Account (Asset Loans in this case).
• Click the dropdown in the Customer Name field and select the employee or business receiving the loan.
• Enter the other necessary details and click Save.

To record repayment of the loan:

If you’ve received a payment for the loan, you can record it in Zoho ERP. Here’s how:

• Go to the Accounting module in the left sidebar.
• Switch to Banking tab in the modular bar.
• Select the account in which you received the money.
• Click Add Transaction on the top right corner of the page and select Deposit From Other Accounts under Money In.
• Select Deposit From Other Accounts under Money In.
• In the pane that appears, select the From Account as Asset Loans.
• Fill in the details of mandatory fields like Date, Amount, and From Account.
• Click the Received From dropdown and select the employee or business repaying the loan.
• Click Save.

To view loan details using a custom report:

• Go to the Reports module on the left sidebar.
• Select the Account Transactions report in the Accountant section.
• On the Account Transactions report page, click Customize Report in the top left corner of the page.
• On the Customize Report page, click + Add Filters in the Advanced Filters section of the General tab.
• Select Account from the Select a field dropdown, is in from the Select a comparator dropdown, and Asset Loans from the Select Account dropdown.

To customize report:

• Go to the Show/Hide Columns tab.
• Under the Available Columns section, click the + button next to the Contact field to add it to the Selected Columns section.
• Choose the required columns and click Run Report.

Account Transaction report

You can view loan details such as the amount given as a loan, the amount repaid, and the name of the employee or business receiving the loan.