Hello there, ADstaxic.
I see you’re working to streamline your loan accounting processes. I can guide you through best practices for recording bulk repayments and handling missed payments in QuickBooks Online (QBO).
First, yes, you can make a single deposit that includes multiple lines, with one line for each borrower. You can allocate each line between principal (Loans Receivable) and interest (Interest Income). This is a common and efficient approach for lenders. After that, it’s a good idea to consult an accountant to set up separate accounts for principal and interest to ensure your records are accurate.
To record loan repayments in one bank deposit, follow these steps:
- Go to + Create and select Bank deposit.
- For each borrower’s principal payment, add a line:
- Received From: the customer (borrower)
- Account: Loans Receivable (to reduce the receivable)
- Memo/Reference: loan number, payment period, and any check/reference number
- Amount: the principal portion of that borrower’s payment
- For each borrower’s interest portion, add another line:
- Received From: the same customer (or group as you prefer)
- Account: Interest Income (or the appropriate interest revenue account)
- Amount: the interest portion of that borrower’s payment
- Once done, select Save and close.
Concerning the missed payments, there is no need to record a payment if no cash has been received. The loan balance should remain unchanged. Since QBO operates on a cash-basis system and no cash has flowed in, there is nothing to record. Your external loan software accurately maintains the schedule, tracks the accrual of interest, and displays the balance due. QBO only needs to record actual cash movements.
If a payment is received and later returned (e.g., NSF), you can record the cash reversal and any bank fees. Only record actual cash events. For step‑by‑step guidance, see the QBO help article: Record a returned payment or bounced cheque.
If you need more help with QBO, we’re happy to assist. Just reply to this thread.
