Create the finance schedule
Set up a separate schedule for each material loan or finance agreement. Record the opening/principal position and the terms needed to calculate the expected movement. Link an appropriate loan nominal/subledger where used.
Add bank transactions to the schedule
Use the loan allocation workflow to bring in relevant posted bank payments/receipts. A bank line can be added from an appropriate nominal search where the payment is genuinely part of the finance schedule. Do not automatically pull every transfer-review line into loans because internal transfers and other non-loan movements can share that review area.
Capital and interest
Review how each repayment is split between capital and finance cost. The schedule should explain the movement in the loan balance while the interest element reaches the Profit & Loss account once.
Differences and final journal
If the actual ledger and schedule do not agree, investigate missing allocations, opening balance, dates and terms first. Use the controlled difference/final adjustment route only for a genuine remaining year-end adjustment, not as a shortcut around incorrect bank allocations.
Current and non-current balances
Use the schedule to support amounts falling due within and after one year for accounts presentation. The totals must reconcile back to the related loan nominal accounts.