UK Complicated loan/interest advice

[Robbo]

Hi guys n' gals.
I think the question I'm posing is generic in nature rather than specific software related.
Basically my company took a loan (call it X) from a company that places a set interest (call it Y) amount regardless of term. The loan plus interest is payable as a percentage of daily VISA takings so also has no set period attached to it. Payments continue until the total of X+Y is repaid.

Now, here's the problem; I need to show the loan and the interest against the lender in my accounts so that continuing payments reduces the total amount of X+Y.

Firstly, how do I show the receipt of the loan PLUS the attached interest?
I did think that setting up a lenders account within the Liabilities section would allow that, however if I then do a Receive Money procedure I can only do it for receiving the money (X) with no facility to show where the interest goes. I can't Receive X+Y as Y isn't a receipt but an interest charge.

If I receive X+Y total into my Unallocated funds account it still shows that I have actually received that amount, which of course I haven't.
Specifically, I need to show X+Y as a single liability so that the payments off the total are applied that way or it gets even more complicated by splitting them as of course the payments will l be applied to X only or Y only.

How do I even apply an interest amount as it's not a receipt nor is it a purchase or any other actual business input?
If I have to show it in a separate account then it won't be linked to the lenders specific account to reduce whilst payments are being made.

My head's about to burst on this guys.
Any comments please, apart from Co-codomol

 

[Steve-LevelUp]

I think I understand what you need, but lets' try to break it down. The interest is a fixed interest rate with variable principle payments. So, create a schedule showing the monthly interest payments.

How often are principal payments due? If the same as interest, then it should be easy.

if the alloted principal payments is a percentage of (income?) from VISA, then you can just track and calculate this at the end of the month. (Dr Loan, Cr Cash) without any intermittent tracking as there is no other accounting tracking needed.

As for Interest, this is recorded as a monthly expense against the vendor and then paid to the vendor.

it might help if you gave some numbers and some examples of how the VISA receipts work in calculating the loan re-payment.