Knowing how to enter a loan payment in QuickBooks can help you to track loan payments and associated interest. In this post, we will discuss the steps to record a loan payment in QuickBooks Online. In the first place, you need to create a loan account and enter the loan into the application. You can also create a journal entry for a loan, but it takes a good knowledge of accounting, and if not done properly, you can get discrepancies in your accounting. Read the post until the end!
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How To Record A Loan Payment In QuickBooks Application?
If you want to learn how to enter a loan payment in QuickBooks, then you need to create a loan account in the first place to enter the loan. QuickBooks Online enables you to create a liability account to record the loan and its payments. Every time, you want to record a loan payment and related interest or fees, you will need to create an expense account:
To Create An Expense Account:
- First of all, go to the Create icon and then select Expense.
- Now in the Payee field, enter the name of the business or person you received the loan from.
- After that, select the bank account holding the loan that you’ll use to make payments using the Payment account drop-down list.
- Next, mention the Payment date and select the Payment method using the drop-down.
- You may also enter any identifying number for the payment receipt using the Ref no. field, but this step is optional.
After creating the expense account, you will have to enter the payment, interest, and bank feeds as separate line items in the Category Details section.
To Record The Loan Payment:
- Select the first line.
- Now from the Category dropdown, select the account you used for loan tracking.
- Next, enter the full amount of the loan payment in the field named as Amount.
To proceed on how to enter a loan payment in QuickBooks, you will have to record the interest.
To Record Interest:
- To record the interest related to your loan, you have to select the second line.
- Now from the Category dropdown, select the account you used for tracking loan interest.
- In the Amount field, enter the total amount of the interest paid.
In the same progression on how to enter a loan payment in QuickBooks, you will also need to record the fees incurred from the bank.
To Record Any Bank Fees:
- Go to the third line.
- From the Category dropdown, select the account used in tracking bank fees associated with your loan.
- Now in the Amount field, enter the total amount you have paid.
In the end, select Save and close or Save and new based on requirements to accomplish the task.
Need To Reach Out A QB Expert?
This post elaborates on how to enter a loan receivable in QuickBooks. If you face any trouble in performing the steps, or have other doubts in your mind, dial our helpline number (855)-526-5749 and get all your doubts answered by experts. On connecting, you can ask the expert, how to enter a loan payment in QuickBooks fail-safely, and you will get the most relevant solution to get the task accomplished.