Go to your Accounts page under settings. On the right hand side of the page, click on “New Custom Account” and select the type of liability you want to create.

If this is an existing loan that you’re adding to Ambrook, list the opening balance as of the last date you computed the remaining balance. For example, you may have calculated your balances at the end of the last year as part of tax preparation. You’ll likely set this balance as a Liability (Credit) - this will show up as money you owe on your balance sheet.

If it’s a new loan, you can set the opening balance as zero. Then, when the cash inflow shows up on your ledger as a deposit in your bank account, you can mark that amount as a loan transfer to add it to this account.

If the deposit transaction does not show up on your ledger, you can adjust the balance of the loan by selecting the account and selecting “Adjust Balance”. This will create a transaction on your ledger associated with this loan account. If you’re using this cash inflow for an asset purchase, then it will be easy to also tag that transaction to the correct asset account.

Identify the principal and interest portions of the payment. Since both come into your ledger as a single amount, you can split them out by creating separate line items on the transaction. You can do this by clicking on the transaction and clicking on “add line items”.

Tag the principal repayment as a “Loan Transfer”. This reduces the balance of the loan account on your balance sheet.

Tag the interest as your interest expense category. It’s important to split these out for both tax purposes and for maintaining an accurate balance sheet.