Draws on loan from bank

Thanks for sharing your concern, @Anne. I'd be glad to help you enter loans in QuickBooks Desktop. 

When recording a loan in QuickBooks, you'll need to set up a liability account for it first. 

Here's how:

1. Go to the Lists menu, then choose Chart of Accounts.
2. Right-click anywhere, then click New.
3. Select Other Account Types, then select the right account type for your loan:

• • Other Current Liability: Use this for short-term loans payable over one year.
  • Long Term Liability: Use this for long-term loans payable over a longer period.

   4. Click Continue, then enter the name and number of the account.

   5.Click Save & Close.

Then, set up an escrow account to track the escrow portion of a loan payment. Here's how:

1. Go to the Lists menu, then select Chart of Accounts.
2. Select the Account dropdown, then New.
3. Select Other Account Types, then Other Current Asset.
4. Select Continue, then enter the account name.
5. Click Save & Close.

Once all are set, you can now track your loan in QuickBooks Loan Manager. Here's how: 

1. Go to the Banking menu, then select Loan Manager.
2. Select Add a Loan, then enter the account info for the loan.
3. Select Next, then enter the payment info for the loan.
4. Select Next, then enter the loan interest info.
5. Click Finish. 

Check out this article for more details: QuickBooks Loan Manager.

For future reference, you also want to learn about manually tracking your loan in QuickBooks Desktop. 

I'll be around to help if you need more assistance. Have a nice day.

I already have everything set up in chart of accounts.

I take draws on the loan not the full amount. I was wondering how to put partial loan draws into loan manager. Loan Manager wants the total amount of the loan. We might not use the full amount of the loan.

Thank you

Hey there, @Anne. 

I appreciate you reaching back out to the Community and trying to clarify how to do this in the loan manager. It's my priority that you're able to get back on track with your business. 

I can see how beneficial this would be for you to have partial loan draws within the Loan Manager feature. However, this isn't available at this time. I'll send feedback to our Product Developers so they can consider this in the next available update. They take the time to review every request and try to add them to the next release. Check out our QuickBooks Blog to keep up with what's new in the system. 

Moreover, I suggest consulting with your accountant to ensure partial loan draws are the best route for your business. They'll be able to give you the best accounting advice. If you don't have one, then no worries. Here's a link to help you find one in the area. 

I hope this information answers your question. I value you as a customer. Let me know if you have any other concerns. Wishing you and your business well! 

I have the same problem. we take money out of an FSA loan only when needed and I don't know how to enter partial amounts into QB. Let a lone interest issues and payments.  wondering if there is a solve for this?

I have the same exact issue except it is a FSA loan. we only take what we need but pay interest on the whole. Not sure how to input this, or if there is a solve for it yet??

Thanks for joining the thread, @Mariad444. Let me chime in and provide a way to record your loans in QuickBooks Desktop (QBDT).

QuickBooks lets you track the loan amount and record your payments so you can stay on top of it.

One way of doing this is by manual tracking. Please follow the steps below.

To begin, set up a liability account for the loan:

1. Go to Lists and choose Chart of Accounts.
2. Right-click anywhere, then select New.
3. Select Other Account Types, then select the right account type for your loan. Other Current Liability is used for short-term loans payable over one year, while Long-Term Liability is used for long-term loans payable over a longer period.
4. Select Continue.
5. Enter the name and number of the account.
6. Select Save & Close.

Then, set up a vendor for the bank/lending company:

1. Go to Vendors and choose Vendor Center.
2. Select New Vendor.
3. Enter a name and fill in the necessary details.
4. Select OK.

After that, set up an expense account to track the interest payments or fees.

1. Go to Lists and choose Chart of Accounts.
2. Right-click anywhere, then select New.
3. Select Expense, then Continue.
4. Enter the name of the account.
5. Select Save & Close.

After setting everything up, proceed to record the loan amount.

1. Go to the Banking menu, then select Make Deposits.
2. If the Payments to Deposit window opens, select Cancel.
3. In the Make Deposits window:
   a. In the Deposit To field, select the account to deposit the loan into.
   b. Check the Date and enter an optional Memo.
   c. In the From Account column, select the Liability account you created in Step 1.
   d. In the Amount column, enter the loan amount.
   e. Select Save & Close.

Finally, let's now record your loan payments:

1. Go to the Banking menu, then select Write Checks.
2. Select the Bank Account you want to use to pay the loan.
3. Verify the Check NO. and Date.
4. In the Pay to the Order of field, select the name of the bank.
5. In the Expenses tab:
   a. On the first line, select the liability account you created above. Then enter the payment for the principal amount.
   b. On the second line, select the interest expense account. Then enter the payment for the loan interest.
6. Select Save & Close.

For a more accurate recording of the loan, I recommend reaching out to your accountant.

Moreover, as mentioned above the Loan Manager feature was discontinued in QuickBooks Desktop 2022. You can still use Loan Manager in previous, currently supported versions.

Additionally, you can run a report to get an overview of your business' finances.

Let us know if you have further concerns about recording your loans to QBDT. We'll be here to help you in any way we can.