I have just set up a loan. Which account do you apply the loan payment to?

Hello there, swainentllc.

You'll have to create a liability account and make it use to enter payment for a loan in QuickBooks Online. To guide you further, please follow these steps:

1. Go to Accounting on the left panel.
2. Click New at the upper right corner to create a new account.
3. From the Account Type drop-down arrow, select 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.
4. From the Detail Type  drop-down arrow, select Notes Payable.
5. Enter the account name.
6. In the When do you want to start tracking your finances drop-down arrow, choose when you want to start tracking the transactions.
   

To track the loan money you have to spend, you can create journal entries. Then, use the liability you've created from the Chart of Accounts (COA). Enter the loan amount in the Credit column. In the next line, choose the asset column appropriately from the Account drop-down arrow and record the same amount in the Debits column. 

Then, record a loan repayment by creating a check within QuickBooks. You can use this reference for an additional guide: Learn how to record a loan in QuickBooks Online. 

Also, you might want to use this article to learn more about the Chart of Accounts: Understand the chart of accounts in QuickBooks.

Please let me know if you have other concerns. I'm always around to help you figure them out. Take care always and enjoy your day!

Hi swainentllc,

Hope you’re doing great. I wanted to see how everything is going about applying loan payment. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

Hello:  

Thank you for replying.  It really has not been answered.  However, I was not clear on my question.  We purchased a new truck (semi).  I set up the account per the instructions and it is all set.  We just made our first payment on it and I just was not sure which account to attach to the payment?  

Thank you!

Cheri Swain

I'll help you record the payment for the loan, @swainentllc.

Once you have set up the liability account, you can apply the first payment for the loan by creating a check.

Here's how:

1. Select + New and then create a Check.
2. From the Account drop-down list, select the liability account you created for this loan.
3. Enter the Amount of the payment.
4. Hit Save and close.

With this, the asset will stay the same and the liability will be reduced based on the payment you've entered into the system.

Additionally, you can visit our Community page to boost your navigation experiences such as recording income and expenses: Help Topics.

If you have other concerns with recording transactions, let me know. I'll take care of it. Enjoy your day!