Accounting for Internal Loans
Internal Loans are the avenue through which the University may provide resources for internal financing of equipment, construction and major renovations.
The steps to initiate an Internal Loan may include:
- Processing an approved capital project internal loan requests.
- Recording of the Loan in Financial Accounting System: A liability will be recorded in the general ledger internal loan account.
- Repayment of Principal: Principal repayment is processed through Periodic Journal Entries which reduce the internal loan liability.
- Internal Interest: Interest will automatically be charged monthly by the University Internal Interest System.
For more information, please click below:
- Policies: Policy No. 1805 Internal Loans: Equipment, Construction, and Major Renovation Projects
- Forms: Internal Loan Application – See Request for Capital Project Internal Loan