How do you enter the record to write off a loan in Margill Loan Manager

/in /by

Question: How do you enter the record to write off a loan in the MLM?

Answer: What I suggest is to create a Line status called “Payment – Write-off” in Tools > Settings > Payment Line status.

In the example below I changed “Paid Pmt 4” to “Paid – Write-off”. This is a non-cash transaction and can be isolated from the normal payments (monetary) in your accounting.

You would then bring the balance of the loan to 0.00 with this Line status.

You can then delete the rest of the payments that were actually never paid and are of no value.

I recommend taking a snapshot before doing so (actually even before the write-off) so you have a history of what the initial loan looked like. This is done in two clicks with Attach:

This brings all your accounting balances to 0.00 (exception here where Setup Fees were charged but never actually paid from an accounting perspective – thus a Balance for these fees and a negative Due Principal amount – nothing is ever lost or gained ;-))

For reporting, you can isolate the payments called “Paid – Write-off” and as of version 4.2 you can even get the Principal, Interest and Column Fees that were “paid” (actually written off):