CountServa · CountServa: Accounting and ERP Manual

Loans and Hire Purchase

VYROX Wiki · Updated 23 September 2026 · https://www.vyrox.com/wiki/countserva-loans-and-hire-purchase

Loans & Hire Purchase in CountServa lets you record each bank term loan or hire purchase facility, post its opening position, generate a month-by-month amortisation schedule and post every instalment, split into principal and interest, against your bank account. It is used by company owners and managers who need borrowings shown correctly as current and non-current liabilities, with finance cost landing in the right month.

Before You Start

Only the company Owner or a manager can open this screen. The menu item is hidden from other roles.
Have the facility letter or hire purchase agreement at hand: lender, facility number, original amount, interest rate, term and monthly repayment.
If you are moving from another system, have your cutover figures ready: outstanding principal, the current portion (due within 12 months) and any accrued interest, as shown in your last audited accounts.

Open it from Accounting > Loans & Hire Purchase (in the Records section).

Add a Facility

Go to Accounting > Loans & Hire Purchase.
Fill in the Add Facility form:
- Lender, for example the bank name (required).
- Facility No, the account or agreement number.
- Type: Term Loan or Hire Purchase.
- Original Amount, Interest Rate (% p.a.), Term (months), Start Date and Monthly Repayment.
Press Save Facility.

The facility appears under Facilities with the status draft.

Post the Opening Position

A draft facility shows an opening row beneath it.

Enter the Cutover date. It defaults to your books lock date, or to today if no lock date is set.
Enter Outstanding (principal still owed at cutover).
Enter Current Portion, the part due within the next 12 months.
Enter Accrued Interest, if any.
Press Post Opening.

CountServa posts the opening journal, splitting the liability into current and non-current, with accrued interest carried separately. The status changes to open.

Check	Rule
Outstanding	Must be greater than zero.
Current Portion	Must be between zero and the outstanding amount.
Cutover	Must be a valid date.

Correct an Opening Position

If the figures were wrong, press Unpost Opening & Edit and confirm. The opening journal is reversed and the facility goes back to draft so you can re-post it. If any instalment has already been paid, void those instalments first.

Generate the Amortisation Schedule

In the Facilities list, press Open / Schedule on the facility.
Press Generate Schedule.

The Amortization Schedule lists each period with #, Due, Opening, Principal, Interest and Closing. The schedule needs an outstanding balance and a monthly repayment. If the repayment does not cover the monthly interest, CountServa refuses and asks you to check the rate and repayment, because the balance would never reduce.

Pay an Instalment

Open the facility with Open / Schedule.
On the period row, check the date and choose the bank account the money left from.
Press Pay.

CountServa posts the instalment: the principal reduces the loan liability, the interest goes to finance cost, and the bank is credited. The row then shows posted.

To undo a posted instalment, press Void on that row and confirm. Its journal is reversed and the period can be posted again.

Facilities List Reference

Column	Meaning
Lender	Lender name and facility number.
Type	Term Loan or Hire Purchase.
Outstanding	Principal still owed.
Current	The portion due within 12 months.
Status	draft (not yet opened) or open.

Statutory and Reporting Notes

Under MFRS and MPERS, borrowings are split into current and non-current liabilities. Keep the current portion up to date at each year end so the balance sheet is right.
Hire purchase interest is a finance cost. Posting each instalment monthly keeps the charge in the right month instead of arriving as a lump at year end.
Capitalise the asset bought on hire purchase separately in the fixed asset register. This screen handles the financing, not the asset. See Fixed Assets and Depreciation.
Capital allowances on assets bought on hire purchase are claimed on the principal portion paid. Confirm the treatment with your tax agent.

Frequently Asked Questions

The screen is limited to the owner and managers, so the menu item is hidden for other roles, including accountants with full Accounting rights.

The Schedule Will Not Generate. Why?

Post the opening position first so there is an outstanding balance, and make sure the facility has a monthly repayment that is larger than one month's interest.

Can I Change the Figures After Posting the Opening?

Yes. Press Unpost Opening & Edit. If instalments were already paid, void them first, then unpost.

What If I Posted an Instalment by Mistake?

Press Void on that schedule row. The journal is reversed and you can post the period again.