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Karen R
Level 1

How do I record payments to a finance loan for a new piece of equipment so I can match the bank transaction.

Please can someone help, I'm new to this. We bought a piece of equipment through finance with no down payment. On QBO I put the equipment as a fixed asset and the financing down as a long term liability. I now need to clear the first payment so my bank account balances but I'm not sure how to register the transactions/interest and the documentation fee. The loan and doc fee was added up from so my finance balance would actually be different to my fixed asset amount. Does this matter? Thank you

Solved
Best answer September 25, 2020

Best Answers
MadelynC
QuickBooks Team

How do I record payments to a finance loan for a new piece of equipment so I can match the bank transaction.

I’m here to ensure you’ll be able to record this payment so you can match it to your bank transaction, @Karen R.


When recording payment for the liability, you can add a line item for the interest and fees. The total amount will be the same as to what was paid or taken out from your Bank.


By this, the asset will stay the same and the liability will be reduced based on the payment you've entered in the system. Here’s how you do it:

 

  1. Select the + New button.
  2. You can choose a Check.
  3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an ETF, enter Debit or ETF in the check # field.

Then enter the following in the Category Details section:

 

  1. On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
  2. On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
  3. Add the documentation fee on additional lines then select the appropriate accounts from the Category dropdown.
  4. Select Save and close once you’re done.

    Capture.PNG

If you don’t have expense accounts for these yet, you can set up or add a new one in your Chart of Account.


Once you’re done, you can run Transaction List by Customer report to track the event you’ve created. Just use the customize feature to display the details that matter to you.
Capture 1.PNG


Please let me know if there’s anything I can help with you. I’m here determined to answer them for you. Have a great day.

View solution in original post

3 Comments
MadelynC
QuickBooks Team

How do I record payments to a finance loan for a new piece of equipment so I can match the bank transaction.

I’m here to ensure you’ll be able to record this payment so you can match it to your bank transaction, @Karen R.


When recording payment for the liability, you can add a line item for the interest and fees. The total amount will be the same as to what was paid or taken out from your Bank.


By this, the asset will stay the same and the liability will be reduced based on the payment you've entered in the system. Here’s how you do it:

 

  1. Select the + New button.
  2. You can choose a Check.
  3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an ETF, enter Debit or ETF in the check # field.

Then enter the following in the Category Details section:

 

  1. On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
  2. On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
  3. Add the documentation fee on additional lines then select the appropriate accounts from the Category dropdown.
  4. Select Save and close once you’re done.

    Capture.PNG

If you don’t have expense accounts for these yet, you can set up or add a new one in your Chart of Account.


Once you’re done, you can run Transaction List by Customer report to track the event you’ve created. Just use the customize feature to display the details that matter to you.
Capture 1.PNG


Please let me know if there’s anything I can help with you. I’m here determined to answer them for you. Have a great day.

View solution in original post

Karen R
Level 1

How do I record payments to a finance loan for a new piece of equipment so I can match the bank transaction.

Thank you Maddy!

MadelynC
QuickBooks Team

How do I record payments to a finance loan for a new piece of equipment so I can match the bank transaction.

You’re most welcome @Karen R.

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