Community Discussion: Quicken Lending tool not calculating correctly
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When Quicken creates a loan where the user is the borrower, Quicken will create a loan schedule that assumes that any payments already due have been made.
Thus (for example), if the real-world "borrower loan" was created two payment periods before entering the loan in Quicken, the Quicken Full Loan Payment Schedule will have two less payments than the loan requires ... because Quicken assumes that those two payments were already made. When this situation occurs, the Quicken loan account will have an Adjustment transaction for the amount of the payments assumed to have already been made. That Adjustment transaction will appear just following the opening balance transaction in the Loan account. I believe this is the correct way setup loans in Quicken - both borrower and lender loans.
But, when creating a loan where the Quicken user is the lender, the results may be slightly different.
To create a Quicken "lender" loan, the user must first create a Quicken Asset account for the amount of the loan, as of the starting date of the real-world loan. Once that asset account has been created, in the to-become a lending loan Asset account "Actions" dropdown, the user needs to select, "Convert to lending loan".
When the resulting lending loan has been successfully created, its Full Loan Payment Schedule will include all payments, regardless of when the loan was initiated in the real-world or created in Quicken. But the "next" (scheduled) loan payment will NOT necessarily be the "first" payment due for the loan; it will be the next payment due AFTER the Quicken loan creation date. Thus the scheduled loan payment transaction sequence may begin too late (bypassing any payments that should have been made before the loan was created in Quicken), then will have the final payment due later than the real-world payment should be due.
I tested in R39.23, R42.19 and R42.21 and each produced the results described above.
My tests lead me to believe that the original poster likely created a loan where the Quicken user is the borrower, rather than the lender.
The original poster refers to a "built in lending tool" and implies that the loan was created according to Quicken's instructions for creating a lending loan. But I suspect those directions were not followed and that is what caused the problem.
The initial step to create a lending loan is to create a Quicken Asset account. But during the process of creating that asset account, Quicken will ask the user if there is a loan against the account, to which the user must say NO. If, instead, the user answers YES, and completes that loan creation process, the user will create a "borrower loan", NOT a "lender loan". And, as noted above, a "borrower loan will only create a payment schedule for payments that Quicken assumes have not already been made.
The Type of loan account created by the original poster is simple enough to determine: a true lender loan account will be a Quicken Asset account, displayed in the Account List/Account Bar with other Quicken assets - and the loan payment transaction created by Quicken for a lender loan will be a deposit to the Quicken payment account, rather than a withdrawal.
[At the time of this post, the original poster has not provided the details of the technique used to setup the loan, the "terms" used for the loan, the resulting Quicken "Account type", or the algebraic sign of the loan payment transaction created by Quicken; so what actually happened is largely speculation.]