If the Asset is purchased through a finance agreement, then Financed Accounts need to be created in your Chart of Account to keep track of the amount borrowed from the Finance Company, any payable interests and loan repayments.

You will need to create two Loan (Liability) accounts:

• The Loan Account
• The Loan Unexpired Interests Account

Create the Loan Account

1. Go to Accounting > Chart of accounts
2. Click on [Add Account]
   
   è  The Add New Account screen
   
   
   
   
3. Select/Enter the following details:
   • Account Type > Non-current Liability
   • Code > Enter a 3-digit code starting with 8
   • Name > Type: Loan #assettype 
   • Tax > Select: BAS Excluded
4. Select the option: Enable payments to this account
5. Click on [Save]
   

Create the Loan Unexpired Interests Account

1. Click on [Add Account]
   
   è  The Add New Account screen
   
   
   
   
2. Select/Enter the following details:
   • Account Type > Non-current Liability
   • Code > Enter a 3-digit code starting with 8
   • Name > Type: Loan #assettype - Unepired Interest
   • Tax > Select: BAS Excluded
3. Click on [Save]