Hi i purchased a commercial property which has a mortgage, how do i add this entry into quickbooks?

I can help you in recording that, stormers148.

First, you'll want to set up an asset account to track the commercial property you've purchased. Here's how:

1. Go to the Accounting menu.
2. Select Chart of Accounts, then click New.
3. From the Account Type drop-down menu, choose Fixed Assets.
4. From the Detail Type drop-down menu, select the option that closely describes the asset.
5. Name the account, then select the Track depreciation of this asset checkbox.
6. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
7. When you're done, select Save and Close.

After that,  set up a liability account to track the mortgage and loan payments. When you're in doubt about the categories to use, you may consult an accounting professional to ensure that everything is recorded accurately.

I'm also adding this article to help manage your assets and track depreciation: Depreciate assets in QuickBooks Online.

Fill me in if you have any other concerns or follow-up questions. I've got you covered.

Thank you i have followed those steps. What do i do next? the property has GST attached to it and when i look at my GST report nothing has changed?

Thanks for getting back to us, stormers148!

You can record an expense transaction, code it with GST and allocate it to the liability account you've set up to offset the mortgage amount. Here's how:

1. Click on the + New button.
2. Click on Expense.
3. Fill out the Payee field, like supplier name, date and payment method.
4. In the Payment account field, select the account you used to pay the expense/mortgage.
5. In the Category details, select the liability account created for the mortgage.
6. Enter the Amount, and GST.
7. Click on Save and Close when done.

Then, the expense should offset the mortgage amount tracked under the liability account every time you record the expense transaction. And GST amount will be tracked on your BAS when transaction is coded with GST.

Feel free to leave a comment below if you have more questions about recording the expense. Enjoy the rest of the day!

hello when i try to enter this expense i get an error advising i cannot use that type of account. all of them are current asset types.

Thanks for your reply, stormers148.

We can set up a liability account to record the loan and its payments. Let me show you how. 

1. Go to Accounting tab and select Chart of Accounts.
2. Select New. 
3. From the Account Type ▼ dropdown, select Non-current liabilities. Note: If you plan to pay off the loan by the end of the current financial year, select Current liabilities instead.
4. From the Detail Type ▼ dropdown select Loan Payable.
5. Add Name of that account.
6. Select Save and close.

Once done, you can use the loan account created above to record the loan repayment. 

For more detailed information, you can check on this article: Set up a loan in QuickBooks Online. ​​​​​​​

Let me know if you need any help with setting up a liability account. Thanks. 

Yes i have already done that but i want to record the expense of the property purchase and the GST component. when i try to enter this as an expense quickbooks come back to me with an error... saying i cant use that type of account to record the expense. this property has a mortgage attached. how do i record the purchase of this property so that i can claim the GST? 

Hi stormers148,

Recording commercial property and mortgage can be tricky in QuickBooks Online. The steps provided by Aika and KlentB are the steps usually provided to customers on how to record the property purchase. You'll have to make sure you've selected the liability account under Category details when creating the expense transaction.

For further assistance, I'd recommend consulting your accountant with your accountant on how to account for the purchase to keep your books accurate. You can also contact our Customer Support Team, as they can do screen sharing (Smartlook) with you in a secure form to help you check if the account created for the property purchase and mortgage is correct.

Please know you're always welcome to post below if you have other concerns. We'll be sure to get back and help you. Have a great day!