Interest on late payments on money I lent somebody else (Quicken 2013) [Edited]

Question

I'm using Quicken 2013 Deluxe.

I sold a house on contract and set up a loan using the "Convert this Asset to a lending loan" dialog box. Now payments are coming late. I set up a suspense account for his payments, and when enough money has arrived, I'll make a payment to the loan.

My question is, since the Quicken schedule can no longer be used, can individual payments be generated on a loan such that the interest is calculated correctly based on the date of the payment? If so, how?

GameZot · Answer

Thanks, that was my conclusion as well. I put together an amortization schedule in Excel and calculate interest once a month on the 6th (when a late fee is generated). Since banks us suspense accounts, I'm doing the same. If anybody knows how to get Quicken to do this, please let us know.

Tom Young · Answer

I think in this situation you might need to resort to manual entries.

If money is arriving late and in dribs and drabs I see no point in holding the money in a suspense Account until "enough" (scheduled payment amount?) arrives.  I'd probably make the loan entirely "manual" and make deposits against principal as they come in.  If the loan agreement has no provision for late payments, e.g., a penalty of $X, depending on the amount of lateness, then you will need to make manual calculations of the amount of interest accruing on more or less a daily basis, add that interest to the principal balance of the loan, and then re-calcuate the next payment based on, in effect, a new amortization schedule based on the remaining term of the loan.

It's a difficult situation, that's for sure.