Setting the Principal of Debt Schedules

Use Principal to enter the loan amount, which is the principal.

  To set debt schedule principal:

  1. Access Debt Scheduler.

    See Defining Debt Schedules.

  2. Select Principal.

  3. In Principal, enter a value.

    This is the loan amount—it must be greater than zero. Values must be in the scale of the account. For example, if an account is in millions, the value 100 equals 100,000,000.

  4. In Premium/Discount, enter a value.

    If the loan is issued at a premium or discount, enter the percentage. Calculated as a percent of the principal.

    • Enter a premium as a positive number.

    • Enter a discount as a negative number.

  5. In Issue Costs, enter a value.

    If there issuing costs, enter the value. This value represents a percentage of the principal.

  6. Optional: Select Expense issue costs as incurred to expense the issue costs.

    Issue costs are usually capitalized and amortized over the life of the debt. Select this option so issue costs are calculated and shown on the income statement when the debt is issued.

  7. Optional: Select Calculate current portion of long-term debt to calculate the current portion of long-term debt by determining the payments scheduled to be made over the next 12 months.