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Record a loan and its payment

Learn how to record a loan payable in QuickBooks Online.

Record your company’s loan payables to keep track of what you owe. Here’s how.

Step 1. Set up a business loan

  1. Go to the Settings ⚙️ and select Chart of Accounts.
  2. Select New.
  3. Set the Account Type to Other Current Liabilities or Long Term Liabilities.Note: If you will pay the loan within the current financial year, use Other Current Liability. If it's after the current financial year, use Long Term Liability.
  4. Set the Detail Type to Loan Payable.
  5. Enter the name of the account, then select Save and close.

Step 2. Enter an opening balance for a loan

  1. Select Create ⨁ and then select Bank Deposit.
  2. From the Account ▼ drop-down, select the bank account where the loan funds will be deposited.
  3. Enter the date of the deposit.
  4. Under the Account column, enter the loan payable account with the amount.
  5. Select Save and close.

Step 3. Record a loan payment

  1. Select Create ⨁ and then select Cheque.
  2. Add a cheque number if you send an actual cheque. If you use direct withdrawal of EFT, enter Debit or EF in the Cheque # field.
  3. Enter the following information in the Category Details section.
    1. First line: Liability account for the loan and the amount of payment.
    2. Second Line: Expense account for the interest and the amount.
    3. Succeeding lines: Any additional fees along with the appropriate accounts.
  4.  Select Save and close.

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