Help Needed: How to Link Loan Product Accounts to Chart of Accounts in Frappe Lending

ERPNext Accounting
1

Hi everyone,

I’m trying to understand how to correctly link a Loan Product(Frapee-Lending) to accounts in the Chart of Accounts(Frappe ErpNext).
I’m confused about:

  • Which specific accounts (like Loan Account, Interest Income, Penalty Income, Receivable, Payable, etc.) I need to create in the CoA for a loan product.
  • Under which parent group each account should be created — for example, should the principal loan account go under Assets > Loans and Advances, should interest income go under Income > Interest Income, and so on?
  • How these linkages affect journal entries (GL/ JE) when disbursing, accruing interest, receiving payments, or writing off bad loans.

If anyone has:

  1. A simple example of a working Chart of Accounts for Lending,
  2. Or a step-by-step guide on how to map Loan Product accounts properly,
  3. Or even a cheat sheet showing which account goes where

please share!

I’m sure this will help many others too.
Thank you in advance for your time and help.