How to set up truck loan in chart of account with down payment

Let's ensure your QuickBooks Online account accurately reflects your truck loan and down payment, Crystaly.

Setting up a truck loan with a down payment in QuickBooks Online involves a few steps to ensure your books accurately reflect the asset's value and the loan liability. First, let's create and set up a liability account so you can record and track the outstanding balance of the loan.

Here's how:

1. Go to the Gear icon and select Chart of Accounts.
2. Click New to create a new account.
3. From the Account Type dropdown, select Long Term Liabilities, then select Notes Payable from the Detail Type.
4. If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities Account Type, then Loan Payable from the Detail Type dropdown instead.
5. Give the account a clear name to make it easy to identify.
6. Click Save.

Next, enter the down payment you made and the loan amount. You can do this by recording a Journal Entry to record the full value of the asset and the initial balance of the loan. Continue to Step 2 and Step 3 in this article for complete details and guidance, including how to record loan repayment: Setting up a loan in QuickBooks Online.

Please note that contacting your professional accountant for guidance on the specific journal entries for debits and credits in your situation is advisable.

Feel free to ask if you need clarification on these steps or help with any other tasks in QuickBooks Online.

Thank you, loan was set correctly..

You're welcome, Crystaly.

We're delighted that our colleague was able to help you set up the loan accordingly for proper tracking. It's our utmost priority to provide precise assistance whenever needed.

If you have more questions, don't hesitate to reach out to the Community team again.