Mortgage Record Keeping: Difference between revisions

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== Tracking Loan Balances ==
== Tracking Loan Balances ==


Three accounts and four sub accounts need to be set up; MORTGAGE PAYMENT (901), MORTGAGE PAYABLE (60), Principal Paid (60.1), Interest Payable (60.2). (MORTGAGE REDUCTION (900), and Principal Reduction (900.1), Interest Added (900.2). Main accounts are capitalized and sub accounts are lower case.
Please follow the instructions listed below for all payments, interest, etc. related to the church loan. Feel free to adjust names and numbers to fit your system and situation.


Setup Accounts
=== Create Accounts ===
Enter the following accounts into Jewel:
# 10 - [XX Union Conference] Church Building Loan - Type is "Liability (Mortgage or Other Loan)"
# 991 - Loan Building Payment - Type is "Local Fund" - '''Use this account for all donations received and payments made on the loan.'''
# 992 - MORTGAGE PAYABLE - Type is "Local Fund"
# 992.1 - [XX Union Conference] Loan Payment - Type is "Local Fund"
# 992.2 - [XX Union Conference] Loan Interest Paid - Type is "Local Fund"


# Go to Maintenance and select Edit Accounts.
=== Receive the Loan Funds ===
# Select new account button.
#Start New Offering
# Highlight account type as local fund.
#Enter like a regular offering.
# Type in ID number.
#*Receipt of the loan funds as a separate deposit. Do not include it with the regular Sabbath offerings.
# Type in account name (capitalize main account).
#*Enter in the check number if a check was received or "ACH" for the check number if it was automatically deposited into your account.
# Uncheck tax deductible box.
#*Use the name of your Union Conference (or whoever wrote/sent the loan money) as the donor name. Uncheck "Get Receipt" if you are establishing their name in Jewel for the first time.
# Mark sub account box for accounts 60.1 and 900.1
#*Enter the money into the local church account you have paid or will pay expenses related to the loan (i.e. Building Fund/Roof/etc.).
# Select down arrow button, scroll and select proper main account
#*Edit the memo line of the deposit slip to say "Loan Received from [XX Union Conference]" instead of "offering deposit."
#:60.1 (Principal Paid) main account is MORTGAGE PAYABLE<br />
#:60.2 (Interest Payable) main account is MORTGAGE PAYABLE<br />
#:900.1 (Principal Reduction) main account is MORTGAGE REDUCTION<br />
#:900.2 (Interest Added) main account is MORTGAGE REDUCTION


Setup Initial Balances
=== Establish the Loan ===
#Go to Accounting
#Make General Journal Entry
#Under memo type "To establish [XX Union Conference] Church Loan"
#Leave the circle filled for "Deposit and Interest Earned"
#Leave the bank account empty
#Under accounts, type the following:
#*10 - [XX Union Conference] Church Building Loan - enter the total amount of the loan draw under Income
#*992 - MORTAGE PAYABLE - enter the total amount of the loan draw under Expense
#Click OK
#When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.


# Go to Accounting and select “Make General Journal Entry.”
=== Record a Loan Payment ===
# Under memo type “loan setup.”
#Go to Accounting
# Leave button filled for deposit and interest earned.
#Make a General Journal Entry
# Select bank account as checking. Do not enter anything for income or expense (this allows $0 entry).
#Under memo type "[MONTH] Church Building Loan Payment"
# Under accounts, type &quot;60 (MORTGAGE PAYABLE)&quot; and under expense, type in the mortgage principal. Type in &quot;900 (MORTGAGE REDUCTION)&quot; then under income, type in the mortgage principal (same as previously).
#Leave the circle filled for "Deposit and Interest Earned"
#Leave the bank account empty
#Under accounts, type the following:
#*992.1 - [XX Union Conference] Loan Payment - enter the total amount of the check under income
#*10 - [XX Union Conference] Church Building Loan - enter the total amount of the check under expense
#Click OK
#When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.
 
=== Record an Interest Payment ===
#Go to Accounting
#Make a General Journal Entry
#Under memo type "[MONTH] Church Building Loan Interest Applied"
#Leave button filled for deposit and interest earned
#Leave the bank account empty
#Under accounts, type the following:
#*10 - [XX Union Conference] Church Building Loan - enter the total amount of the interest for the month from the NPUC statement of account under income
#*992.2 - [XX Union Conference] Loan Interest Paid - enter in the interest amount under expense
#Click OK
#When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.
 
You can definitely combine the two General Journal Entries into one.  At the end of the month, once you have entered your payment and interest as General Journals, the Church Loan line item on your financial summary page should balance with the ending balance on your lender's Statement of Account.


== Recording Mortgage Payments ==
== Recording Mortgage Payments ==

Revision as of 13:33, 2 May 2025

Tracking Loan Balances

Please follow the instructions listed below for all payments, interest, etc. related to the church loan. Feel free to adjust names and numbers to fit your system and situation.

Create Accounts

Enter the following accounts into Jewel:

  1. 10 - [XX Union Conference] Church Building Loan - Type is "Liability (Mortgage or Other Loan)"
  2. 991 - Loan Building Payment - Type is "Local Fund" - Use this account for all donations received and payments made on the loan.
  3. 992 - MORTGAGE PAYABLE - Type is "Local Fund"
  4. 992.1 - [XX Union Conference] Loan Payment - Type is "Local Fund"
  5. 992.2 - [XX Union Conference] Loan Interest Paid - Type is "Local Fund"

Receive the Loan Funds

  1. Start New Offering
  2. Enter like a regular offering.
    • Receipt of the loan funds as a separate deposit. Do not include it with the regular Sabbath offerings.
    • Enter in the check number if a check was received or "ACH" for the check number if it was automatically deposited into your account.
    • Use the name of your Union Conference (or whoever wrote/sent the loan money) as the donor name. Uncheck "Get Receipt" if you are establishing their name in Jewel for the first time.
    • Enter the money into the local church account you have paid or will pay expenses related to the loan (i.e. Building Fund/Roof/etc.).
    • Edit the memo line of the deposit slip to say "Loan Received from [XX Union Conference]" instead of "offering deposit."

Establish the Loan

  1. Go to Accounting
  2. Make General Journal Entry
  3. Under memo type "To establish [XX Union Conference] Church Loan"
  4. Leave the circle filled for "Deposit and Interest Earned"
  5. Leave the bank account empty
  6. Under accounts, type the following:
    • 10 - [XX Union Conference] Church Building Loan - enter the total amount of the loan draw under Income
    • 992 - MORTAGE PAYABLE - enter the total amount of the loan draw under Expense
  7. Click OK
  8. When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.

Record a Loan Payment

  1. Go to Accounting
  2. Make a General Journal Entry
  3. Under memo type "[MONTH] Church Building Loan Payment"
  4. Leave the circle filled for "Deposit and Interest Earned"
  5. Leave the bank account empty
  6. Under accounts, type the following:
    • 992.1 - [XX Union Conference] Loan Payment - enter the total amount of the check under income
    • 10 - [XX Union Conference] Church Building Loan - enter the total amount of the check under expense
  7. Click OK
  8. When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.

Record an Interest Payment

  1. Go to Accounting
  2. Make a General Journal Entry
  3. Under memo type "[MONTH] Church Building Loan Interest Applied"
  4. Leave button filled for deposit and interest earned
  5. Leave the bank account empty
  6. Under accounts, type the following:
    • 10 - [XX Union Conference] Church Building Loan - enter the total amount of the interest for the month from the NPUC statement of account under income
    • 992.2 - [XX Union Conference] Loan Interest Paid - enter in the interest amount under expense
  7. Click OK
  8. When it comes to reconcile, you will need to check off these zero dollar entries on the bank reconciliation page.

You can definitely combine the two General Journal Entries into one. At the end of the month, once you have entered your payment and interest as General Journals, the Church Loan line item on your financial summary page should balance with the ending balance on your lender's Statement of Account.

Recording Mortgage Payments

Follow these two steps to record mortgage payments.

Step 1

To record the mortgage payment, write a check to record the full payment. Charge to account 901 (MORTGAGE PAYMENT). Donations or transfers for the mortgage are also deposited in this account.

Step 2

To record the reduction of the mortgage payment and the addition of the accrued interest from your SURF statement:

  1. Go to Accounting and select “Make General Journal Entry”.
  2. Under memo type “payment and interest applied to mortgage”.
  3. Leave button filled for deposit and interest earned.
  4. Select bank account as checking. Do not enter anything for income or expense (this allows $0 entry).
  5. Under accounts, type "60.1 (Principal Paid)" then under income type in the payment amount. Under accounts, type in 60.2 (Interest Payable) then, under expense type in the interest amount. Under accounts, type in 900.1 (Principal Reduction) then under expense type in the payment amount. Under accounts, type in 900.2 (Interest Added) then under income type in the interest amount.
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