Adding your Loans to your REI Hub portfolio allows you to track the flow of funds through your business, as well as things like principal paydown and estimated equity. Before you can book a loan payment, you must first create a loan account.
Loan accounts in REI Hub encompass both mortgage and non-mortgage loans. Creating a loan automatically adds it to your Chart of Accounts as a liability account. If it is an escrowed loan, the escrow account is also automatically added to the chart of accounts as an asset account.
The loan payment template helps you automatically break down regular loan payments into their components of principal, interest, and escrow (if applicable).
Loan accounts are not electronically linked in the same way as bank and credit card accounts, as loan payment transactions are typically already imported from the bank account side.
To Create a Loan in REI Hub
1) Navigate to the Loans page
Click on Accounts on the left-hand menu, and then select Loans below.
2) Click Add Loan
3) Enter the Loan's basic information
Enter the Loan Name, Loan Type, Current Balance, and assign a Loan Scope.
If it is a mortgage, leave the 'This loan is a mortgage' box checked. Uncheck the box if it is not a mortgage, and any interest will be accounted for as 'Other Interest' instead of 'Mortgage Interest.'
If the loan is escrowed, leave the 'This loan includes an escrow account' box checked. If the loan does not include escrow, uncheck the box.
4) Fill Out the Loan Payment Template (optional but highly recommended)
Monthly Payment Amount: This should be the exact amount of your recurring monthly payment.
Paid from Account: Specify which account pays the loan so the system can look for the transaction.
Interest Rate: Enter the exact interest rate with as many digits as required.
Monthly Escrow Transfer Amount: This is the same amount every month (unless adjusted by your loan servicer) and can be found on your loan statement.
To not set up the loan payment template, uncheck the box. Without a payment template, you will need to manually enter the principal, interest, and escrow split when booking loan payments to this account.
5) Enter an Opening Balance (optional but highly recommended)
An opening balance is not the original loan amount, but is the outstanding amount as of the start of your recordkeeping in REI Hub.
As an example, if you're entering loan information in June when you start using REI Hub but your bookkeeping year started January 1, you'll want your loan balance as of December 31 the year prior so we have the loan balance before your first payment logged in REI Hub went through.
6) Click Save to View and Edit From the Loans Page
Click on the name of the loan (in blue) to view all transactions associated with the loan.
Click the Edit pencil to the right of the loan name to edit the loan name or payment template.
For example, if the amount of your escrow transfer changes, so does the total payment amount, and you would need to adjust the payment template to match.
Click on "View Escrow Account" to see all transactions associated with that account.
Still have questions? Reach out to our Support Team via email at [email protected] or call us at (888)939-6865.