I'm looking for some input on how to book the following.
Let's say I've loaned someone $1,000. Each month I receive
PIK interest on that note in the amount of $10.00. I make an entry as follows:
2023/01/01 * Note 1 PIK Interest
Income:Interest:PIK Interest -10.00 USD
Assets:Notes:Note 1Even though I haven't received this money as cash, I choose to include this PIK interest in my tithes calculation:
= /^Income/
(Liabilities:Tithe) 0.10 When the note eventually pays off, my CPA needs to know that all of this PIK interest has now been fully realized. I could back the accumulated PIK interest out of the "Income:Interest:PIK Interest" account and put it into an "Income:Interest:PIK Interest Realized" account, but this messes up my automatic tithes calculation. My other thought is to add the realized interest to a virtual "Income:Interest:PIK Interest Realized" account, but now my income reports are off unless I remember to exclude one of the two income accounts depending on whether or not I want a cash basis view or accrual view of my income.
Anyone have thoughts on a good way to handle this?
Thanks
JL