Make a loan payment from a split or payslip/paycheck transaction

A "loan payment" transaction in your Money file is in fact a split transaction and contains two parts - one principal, the other interest.

The payslip/paycheck transaction, is also a split transaction, containing multiple parts - gross pay, taxes and other deductions or additions to your pay.

Microsoft Money does not allow you to put one split transaction within another split transaction; so if your pay also includes a loan repayment transaction, then you cannot include it in that payslip/check transaction.

To work around this, create a simple "holding account" in your Money file - this could be a standard Bank account. In your payslip (or other split transaction), you would make a single "transfer" entry from the paycheck into this new account, of the value of the loan payment. Then immediately create a loan payment transaction (perhaps scheduled like your payslip) from this "holding account" into the loan account, which will pay the loan.

You will end up with an extra account, an extra transaction and an additional bill/deposit, but it's the closest you will get. Microsoft Money doesn't limit you in how many accounts you create, so you can create "fictional accounts" which are great for this type of purpose.

Category: Loans

Keywords: Split, Amortization, Transaction, Loan, Paycheck, Payslip, Mortgage