Money: How to Make Loan Payments from a Paycheck (148280)


The information in this article applies to:

  • Microsoft Money 2004 Deluxe
  • Microsoft Money 2003 Standard
  • Microsoft Money 2002
  • Microsoft Money 2001
  • Microsoft Money 2000
  • Microsoft Money 99
  • Microsoft Money 98
  • Microsoft Money 97
  • Microsoft Money 2000 Business and Personal
  • Microsoft Money 98 Deluxe Edition
  • Microsoft Money 98 Financial Suite
This article was previously published under Q148280

SUMMARY

Money contains a special category called Loan Payment to handle payments to loans. This category includes information regarding the principal and interest portions for a loan payment made to a Loan account setup in Money. However, the Loan Payment category is unavailable in a split transaction window.

This article describes how to make a loan payment from a split transaction.

MORE INFORMATION

A split transaction is a transaction where the money involved is allocated to different categories. For example, a paycheck may include Gross Pay, Federal Income Tax, Medicare, Social Security Tax, as well as a withdrawal for a loan payment.

To make a loan payment from a split transaction, you must create a Cash account for use as a temporary holding tank. When you enter your split transaction, you must transfer the loan payment amount from the split transaction window to the Cash account. Finally, you have to enter the Loan Payment transaction in the Cash account.

To create a Cash account, use the appropriate method for your version of Money.

Money 97 and Later

  1. In the Account Manager, click New Account.

    In Microsoft Money 2001 and later, click Account Setup on the Accounts & Bills menu, and then click Add a new account.
  2. If you are asked about a bank or financial institution, click Next.

    Click Cash, and then click Next.
  3. Type a name for the account, and then click Next.

    Give it a name similar to your loan, for example:

    Home Loan (Cash)

  4. Type a zero (0) for the account balance, and then click Finish.

How To Enter The Split Transaction

To enter the split transaction in your checking account, follow these steps:
  1. Go to the Account Register and enter the transaction that contains the loan payment.
  2. Under Category, click Split.
  3. In Split Transaction, enter all the information regarding the split.
  4. For the loan payment, select the Transfer category.
  5. Press the TAB key to go to the next field and select the name of the Cash account that you just created.
  6. Click Done.

    Press ENTER to complete the transaction.
Follow these steps to enter the loan payment transaction in the Cash account:
  1. Go to the Cash account.
  2. Enter the loan payment as a new transaction.
  3. In the Category list, click Loan Payment.
  4. Press the TAB key to move to the next field.
  5. Select the name of the loan.
For more information about this process, see your Money printed documentation or online Help.

Automating the Process

To simplify this process, you can set up a transaction in the Bills area of Money 98 or later, or in the Payment Calendar of Money 5.0.

For more information about how to perform this task, see your Money printed documentation or Money Help.
Modification Type:MajorLast Reviewed:1/5/2005
Keywords:kbhowto KB148280
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