Seraf enables you to record interest related to Promissory Notes, Convertible Notes and Compulsory Convertible Debentures (CCDs). You can record Accrued Interest and Interest Paid in Cash or Interest Paid in Stock as individual transactions. The value of accrued interest should be reduced by the amount of the payment recorded.
To record Interest Paid in Cash:
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Add a transaction for Interest Paid in Cash.
- Select the Investor / Investment Account or Fund name, depending on your account type.
- Select the Company.
- Select the Round of Investment (the debt round to which the interest pertains).
- Select "Interest Paid in Cash" for the Transaction Type.
- Enter the Date the interest was paid.
- Enter the Interest amount.
- Enter a Memo with any important notes related to the Transaction.
- Save your entry.
- If an Enterprise customer, update calculations.
To record Interest Paid in Stock:
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Add a transaction for Interest Paid in Stock.
- Select the Investor / Investment Account or Fund name, depending on your account type.
- Select the Company.
- Select the Round of Investment (the debt round to which the interest pertains).
- Select "Interest Paid in Stock" for the Transaction Type.
- Enter the Date the interest was paid.
- Enter the Number of Shares into which the interest was converted.
- Enter the Share Price. If left blank, then the amount of accrued interest cannot be reduced by the amount of the payment.
- Select the stock round into which the interest converted as the New Round.
- Enter the Share Certificate #, if you'd like.
- Indicate if the investment is 1244 Qualified.
- Enter a Memo with any important notes related to the Transaction.
- Save your entry.
- If an Enterprise customer, update calculations.
Learn how to record accrued interest.
Learn how to calculate how much interest you earned.
Learn how to record a note conversion.
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