Lending Money - How to Track?

What is the best method for tracking money that has been loaned to family? Is there a way to set up to track repayment? Thanks! 

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  • Reimbursable category (outflow/inflow go through it; move money out of the category to use it elsewhere). Your report is going to All Accounts view and filtering for that category  and the payee. Selected total will tell you the balance.

    Alternatively, use a tracking account and put the person in the memo. If you have more than one loan on that account, filter by memo to get the selected total balance. For this method, you'll outflow as an off-budget transfer, so you'll need a category in your budget (reimbursable/family). Inflows go first in the tracking account, then get transferred to your budget (either RTA or the reimbursable/family category). Since the payee is taken by the transfer, you must put the person's name in the memo.

    As you can see, the first method is more streamlined, so only use the second if you think sequestering the activity in an account is worth the extra work. 

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  • I have a tracking account called "Receivable".   In it, now, are all my flight credit vouchers, the security deposit on my apartment, etc.  What's nice is the money moves out of your budget totally and then comes back in as it is repaid.  YMMV.

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  • Move Light Sound Life said:
    Inflows go first in the tracking account

     I'm not sure I understand this bit. What are you referring to?

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    • Ceeses When someone pays you back, record that in the tracking account first, then transfer it to the budget category from the tracking account.

      I mean, technically you can enter the transactions in any order and the math will work, but that's the logical flow of the money.

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  • I just created a tracking account for it, named it who I lent the money to/from when I lend them the money it's a transfer into the tracking account from whatever amount the money is leaving you from (it will need a category, I use reimbursable), when they repay it's a transfer from the tracking account to your account. The balance on the tracking account is how much they still owe you.

    It also works the other way if you borrow money.

    To me this is easiest as you can quickly see what is owed at all times and the money actually leaves your budget until it's repaid but still shows in your assets list so reflects reality (you still open the money but can't use it right now)

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  • Maybe one piece of advice missing from other replies. You need to assign the money you are lending to the category you are using. Do not use an overspent category. Unless it's a loan for only 1-2 days. As long as the money is lent, you can not use it, so it needs to properly leave your budget. For that, it needs to be assigned to the category you use for the transaction for the loan.

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  • Khaki Welder The 3rd method outlined in this HelpDoc may give you some good visual context for the excellent suggestions given above. Let us know how it's going! 

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