I agree with Dan Brown: You haven't yet told us what the lender does with
your first payment while waiting for the second one.
If your first payment is applied to your loan immediately, it should first
pay the half-month interest accrued since your last prior payment; the
excess should then be applied to the principal balance - which would lower
the interest for the next half-month. When the second payment is received,
it should be applied in the same way: first to the half-month interest and
then to reduce the principal before the next interest calculation.
But that is only theoretically correct. We would have to read the loan
document that you signed to see whether you agreed to some other
arrangement. You may have agreed that the lender can simply hold your money
for a half-month in something like an escrow or impound account - without
paying YOU any interest for that period. You might even have agreed to pay
the LENDER for holding your money for you. Or you might have agreed to some
other terms, which we can't even guess. IF the payment is applied only once
a month, then your first withdrawal should be recorded in Quicken as simply
a deposit into a holding or Suspense account; when the second withdrawal is
made and both halves are applied to the loan, then you record a single loan
payment, with half coming from your current bank account and the other half
from from that Suspense account.
Or you might have no agreement at all as to how the extra payments will be
handled. In that case, about all you can do is try to reach an
understanding NOW as to how future payments will be handled.
Remember my Quicken 2-step process:
Step 1: Understand what is happening in The Real World.
Step 2: Figure out how to record THAT in Quicken.
Trying to do Step 2 before Step 1 is nothing but trouble. In your case, you
haven't yet told US enough so that we can handle Step 1 - so we can't tell
you how to do Step 2. Your original post was extremely uninformative.
After more than a dozen posts in this thread, we STILL don't know what is
actually happening. :>(
The Step 1 question is: What happens to YOUR money from the time you pay it
to the lender until it gets applied to your loan?
During my 30 years of public accounting practice, I dealt with thousands of
loan amortization schedules, including hundreds that I created. Many
variations happen in real life. There's no way to properly record the
payments - in Quicken on with pen and ink - until we know the actual terms
of the loan - both the theoretical terms and the actual practice by the
borrower and the lender.
R. C. White, CPA
San Marcos, TX
Click to see the full signature.