Posting Journal Entries for LOANS in ERPNext
To record loans taken by company from banks.
A Liability account can be created to setup these loans. For example, if a loan was taken from BDO, an account "BDO Loan 2020" can be created.
Log into your ERPNext account.
Click on Accounting .
Under General Ledger, click on Journal Entry.
Click on 'New'.
Under Entry Type, choose Journal Entry.
6. In the table, under Account,
Debit - Select the appropriate account to be Debited (e.g. BDO Loan 2020) and enter the Debit amount
Credit - Select the appropriate account to be Credited (e.g. Bank) and enter the Credit amount. This is where the funds will be from
7. In the next section, enter the appropriate User Remarks
8. Under Reference Section, enter the Bill No., Bill Date and Due Date (if applicable)
9. Click or press CTRL+S to save the document. Note that this does not finalize the document yet. Instead, the journal entry in draft status
10. Review the journal entry. If everything is in order, click on or press CTRL+S to submit and finalize. You are done.