I'm here to guide you as to how you can correctly log an auto loan and its down payment into QuickBooks Online (QBO), @bonnie-sc-techse.
You'll first have to set up a liability account in QBO. Use this account to track what you owe and record your auto loan as well as its payments. Here's how:
- Go to the Accounting menu and select Chart of Accounts.
- Click New to create a new account.
- From the Account Type drop-down, choose Long Term Liabilities. Note: If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities instead.
- Select Notes Payable from the Detail Type drop-down menu.
- Give the account a relevant name, like "Loan for a car".
- Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
- Click Save and Close.
![80.PNG 80.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/76214iFDB67206FF5DCFE3/image-size/large?v=v2&px=999)
Once you're done, record the down payment as an expense in QBO. These steps are also applicable for recording each of your repayment. Here's how:
- Go to the + New button and select Check.
- Add a check number if you send an actual check. If you use direct withdrawal or an ETF, enter Debit or ETF in the Check no. field.
- Go to the Category Details section.
- On the first line, select the liability account for the loan from the Category drop-down list. Then, enter the payment amount.
- On the second line, choose the expense account for the interest from the Category drop-down menu and enter the interest amount.
- On additional lines, add any additional fees. Select the appropriate accounts from the Category drop-down menu.
- Click Save and close or Save and new.
![81.PNG 81.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/76215iA85A1416315D60A0/image-size/large?v=v2&px=999)
Also, to further guide you in managing your business expenses, loans, and bills using QBO, I'd recommend checking out this article: Help Articles for QuickBooks Online.
Let me know in the comments how it goes. If you have other concerns about recording your auto loan and down payment in QBO, I'll gladly help. Keep safe, and I wish you continued success, @bonnie-sc-techse.