Term Loan workpaper (TLN)

The Term Loan (TLN) workpaper reconciles the term loan liability shown in the GL against the loan's supporting documents (loan agreement, statement, amortisation schedule) at year end. Each loan gets its own section.

Data extraction

• Lender, Loan #, Drawdown date, Repayment date, Principal, and Loan purpose are entered from the loan agreement or loan statement provided in Supporting Documents.

• Private % is entered as an input (e.g. 3.9 entered as 3.90%) and is used to split the interest charge between the Business and Private columns. It does not affect the outstanding balance, which is reported in full.

• "Do you accrue interest to the term loan liability?" is a yes/no input (TRUE/FALSE) that determines whether accrued interest is rolled into the liability balance for the year.

• Where accrual applies, "What was last year's interest accrual amount?" captures the prior year's accrual amount, which is removed from the opening balance so it isn't double-counted in the current year's movement.

Determining the closing balance from the loan statement

Opening balance roll-forward

• Opening balance per GL, less last year's interest accrual, gives the opening balance less accrual — the base the year's movements are applied to.

• Plus advances made — additional drawdowns during the year, each captured as a date and amount. Multiple advance lines are summed automatically, with no fixed cap on the number of lines.

• Less payments made — repayments during the year, captured as a number of payments and a payment amount per instalment (e.g. 50 payments of $500). As with advances, multiple payment lines are summed automatically.

Outstanding balance per statement (check)

A separate check, independent of the roll-forward above, that ties the calculated balance to the loan statement: outstanding balance per term loan statement, plus this year's accrual, gives the outstanding term loan balance.

Interest for the year

• A summary of the year's interest, split into Private and Total columns.

• Made up as follows — the year's interest and principal are further split between the Business portion and Private portion, driven by the Private % input.

Calculation of current portion & interest accrual

• Inputs: Pay periods in year (12, 26, or 52), Interest rate, Repayment amount, and Date interest last paid.

• Days since interest last paid, and Actual Accrued Interest, are calculated automatically from the inputs above. A "Tick to overwrite" option lets the preparer enter the Actual Accrued Interest manually instead of using the calculated value.

• An amortisation schedule (Date, Payment, Interest, Principal, Balance) projects the loan's repayments forward and is used to determine how much of the balance falls due within the next 12 months (current portion) versus beyond 12 months (term portion).

Posting journals

• Codes for interest accrual journal — Interest - business, Interest - private, and Term loan (the liability side).

• Codes for current portion journal — Current portion, Term portion, and Total. This journal reclassifies the portion of the loan due within 12 months from the term (long-term) liability to the current liability.

Section structure

Each loan gets its own section. Use the ALL / Term Loan toggle in the workpaper to switch between viewing the full workpaper and only this loan's section.

Balance per GL

The workpaper compares the calculated balance to the GL balance, split between current and term portions: Balance Per Workpaper (Current) vs Balance Per GL (Current) vs Variance (Current), and Balance Per Workpaper (Term) vs Balance Per GL (Term) vs Variance (Term). Any variance here drives the "Unreconciled" status and the variance figure shown at the top of the workpaper.

How to access

• Go to Jobs and open the relevant job.

• Click the Workpapers icon or navigate to Job Results then Workpapers.

• Select Term Loan on the Workpapers Dashboard.