Knowledge Base

How to enter loan data in Money if the first payment period is not 30 days

Article ID: 130468

Article Last Modified on 1/19/2007

APPLIES TO

This article was previously published under Q130468

SUMMARY

When you set up a loan, Microsoft Money calculates the first payment's interest and principal amounts based on a presumed 30-day payment period. Occasionally, the first payment is for a different period of time. If this is the case, interest calculations for the first payment are incorrect.

For example, if you buy a car on March 16 and your first payment is due May 1, Money calculates the interest payment for the first payment based on 30 days rather than the 45-day actual period.

MORE INFORMATION

To enter the correct interest and principal breakdown for the first payment, follow these steps:
  1. From your lending institution, find out the actual breakdown of interest and principal for the first payment.
  2. Enter your first payment normally.
  3. After you enter the payment, select the transaction in the Account Register.
  4. To open the split, press CTRL+S, or click the Split button in the transaction form.
  5. In the Split window, you can adjust the amount of principal and interest.

    Remember that you must make the two amounts add up to the actual amount of the payment.
  6. When you are finished, click Done, and then press ENTER to record the transaction.
Money automatically recalculates future payments based on this change.

Additional query words: money2004 change principle wrong money97 money98 money99 money2000 money2002 money2001 money2003 rocket

Keywords: kbinfo KB130468


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