How do we ask QBO to verify/review instructions at a Support/Help link?

MichaelDougherty · ‎July 06, 2021

I'd some input on the "recording a loan repayment" section in this link: https://quickbooks.intuit.com/learn-support/en-us/bank-loans/set-up-a-loan-in-quickbooks-online/00/1...

QBO states that the "payment amount" should be entered (see attached image), but it seems like this should reference the "principal repayment amount" vs the total payment amount... Can someone offer some input on this please?

Thanks!

Rose-A · ‎July 06, 2021

I appreciate you getting back to us, MichaelDougherty.

Yes, you're right. You should enter the principal payment ($90) on the first line category and not the payment amount.

I'll make sure to share the article with our moderators so they can update the content with precise instructions to avoid confusion.

In the meantime, I'm adding this article to effectively manage your business transactions in QBO: Help Articles. It includes topics about banking, income, expenses, and reports to name a few.

You're always welcome to comment below if you have other concerns about QuickBooks. I'm just around to help. Take care always.

View solution in original post

Archie_B · ‎July 06, 2021

Hello there, MichaelDougherty.

I'd like to share what I know about recording a loan repayment in QuickBooks Online (QBO).

QuickBooks lets you track loan repayment in a much simpler way. Those types of repayment methods/amounts depends on the policy given by your loan provider over the amortization of the loan. If you're unsure on how to handle these types of transactions, I suggest consulting your accountant to help you track loan repayment in QBO.

Once you've figured it out with your accountant, you may go back and check the link you provided above to follow the steps on how to record a loan repayment.

Post your concerns or click the reply button for any follow-up questions about loan repayment. I'm here to help. Have a nice day.

MichaelDougherty · ‎July 06, 2021

@Archie_B Can you elaborate on the "much simpler way" please? I don't believe that this instructions at the link that I provided are correct, and am struggling to understand them. And this isn't from an accounting view; it's from a math perspective...

Example to help: $150 payment was made ($60 to interest; $90 to principal; from my loan invoice).

From the link, QBO instructions state to create a check, and then:

On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.

If you follow the above instruction, you enter $150 on the first line, $60 on the second line, then the total pmnt is inflated to $210 (when the actual total payment was $150).

What would make more sense (I think, and am asking for your input and for your instructions to be reviewed) would be to enter the "principal repayment" (NOT the "payment amount") and then the interest amount. Can you please reply with that in mind?

Again, this is not an "accounting" question... I'm looking for clarity in you instructions.

Thanks

Rose-A · ‎July 06, 2021

I appreciate you getting back to us, MichaelDougherty.

Yes, you're right. You should enter the principal payment ($90) on the first line category and not the payment amount.

I'll make sure to share the article with our moderators so they can update the content with precise instructions to avoid confusion.

In the meantime, I'm adding this article to effectively manage your business transactions in QBO: Help Articles. It includes topics about banking, income, expenses, and reports to name a few.

You're always welcome to comment below if you have other concerns about QuickBooks. I'm just around to help. Take care always.

MichaelDougherty · ‎July 07, 2021

@Rose-A Thanks for taking the time to read my post, comment back, and for sharing the article with the moderators. Best, Mike

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How do we ask QBO to verify/review instructions at a Support/Help link?