How to record a loan repayment?

I've got you, @Julie100. I can help you choose what specific category you can use in recording your loan repayment in QuickBooks. 

I'll make sure that you can record your repayment transactions accordingly in your account. Below is the step-by-step procedure on how to track loans in QuickBooks Online. 

If you don't have a liability account set up in your account yet, I'd recommend creating it first. This way, we can track your loan repayment transactions accordingly. 

You can do the following:

1. Go to the Accounting tab on the left side, then choose Chart of Accounts. 
2. Click the New button.
3. In the Account Type drop-down, pick either Long Term Liabilities or Current Liabilities (pay off by the end of the current fiscal year).
4. Select Loan Payable in the Detail Type field. 
5. Type a unique name in the box. 
6. Click Save and close. 

After that, create a Journal Entry to record the money you got from the loan. I'll show you how: 

1. Go to the +New and select Journal entry.
2. Select the liability account you just created from the Account drop-down and enter the loan amount in the Credits column.
3. Select the appropriate bank account from the box and type the amount in the Debit field. 
4. Click Save and close. 

Once done, you may now record the repayment by creating a check. Do the following: 

1. Go to the + New and select Check. 
2. In the Category drop-down, choose the liability account you previously created. 
3. Enter the payment amount in the field.
4. Pick the expense account for the interest from the Category drop-down and enter the amount.
5. You can add another line if you want to record any additional fees. 
6. Click Save and close. 

See this article for the complete steps: Set up a loan in QuickBooks Online.

On top of that, I'd suggest consulting an accountant as well. They can review your business needs and guide you on what specific category to use. Also, they maybe have other ways to record the loan repayment that meets your business needs. 

Once everything is in place, you can always run the quick loan report by going to the Chart of Accounts page. This way, you can review the transactions with the remaining balance.

I've also added articles about managing vendor transactions, information, and related topics. 

• Track customer loans
• Manage Vendors and Expenses

If you have a question about loan payments, feel free to ask me and I'm always here to help you anytime. Keep safe.

Hi @Julie100 

Your loan & repayments seem to be set up correctly.  Leave those as they are.

The payment from the customer is separate (as far as the accounts & HMRC are concerned).

The issue here is why the customer is paying - what are they getting in return?

If they are getting an asset (or use of that asset or any service) in return for the payment then that should be reflected in the accounts - i.e. an invoice raised - and the payment should be entered as income (i.e. taxable).

The business cannot simply receive money & bypass the taxman (which is what it would look like if the customer simply repaid the loan).

Hope this helps.

Is there any way of doing this from the bank transactions screen once the Ledger Loan Account is setup?

Hello there, @bcbjork.

Let me chime in and provide insight about recording it from the bank transactions screen in QuickBooks Online (QBO).

Yes, it's possible in the bank transactions screen if you already set up the loan accounts in QBO. To do that, you have to categorize the transactions into the following liability and asset accounts and then add/match the repayment if the customer created the transactions in QBO.

For future reference, you can check this article to guide you in matching your bank and credit card statements: Reconcile an account in QuickBooks Online.

Please feel free to leave a comment below, if you have further questions about bank transactions or other QBO-related concerns. I'll be here to assist you.

Can you explain this to me more simply please

"To do that, you have to categorize the transactions into the following liability and asset accounts and then add/match the repayment if the customer created the transactions in QBO."

I have an account setup for the loan in the chart of accounts.  Do I need to journal each loan repayment and then match each transaction to the journal?

It's a pleasure to have you back here, @bcbjork.

I'm here to share additional information on how to record a loan repayment in QuickBooks Online (QBO).

Since you want to record the loan repayment in the bank transaction screen, you'll have to categorize the transactions into the following accounts and add/match the repayment if you create the transactions in QBO. 

1. Go to the Banking tab.
2. Select the tile for the account you want to review.
3. Click the For Review tab to start your review.
4. Find and click the transaction you want to categorize.
5. Click on Categorize and fill in other needed info.
6. In the Category field, select the category you want to associate the transaction with. If you're not sure which account/category to use, you can consult your accountant. If you don't have one, you can find it through this link: Find an accountant.
7. Once done, select Add.

Your categorized transaction will be shown in the Categorized tab beside For review, and check out this article for more details: Categorise and match bank transactions in QuickBooks Online.

With regards to recording a loan, See this article for more details: Set up a loan in QuickBooks Online.

Moreover, you can customize the report and save its current customization settings by memorizing it. It will serve as your record and help you quickly access it for future use.

Please don't hesitate to update us here in the Community for additional questions when setting up a loan with QuickBooks Online. We're always here to lend a hand.