How do you record the PPP loan forgiveness? I have the loan on my books already. I recently got the full amount forgiven, so do I need to make an entry into QB for that?

Yes, you're right, @JayrardsJava

To get off the PPP loan or record the forgiveness, you'll have to create a journal entry. I'd recommend reaching out to your accountant to determine which accounts to use. If you don't have one, you can visit the ProAdvisor site to run a search.

Here's how to create a journal entry:

1. Click +New and select Journal entry.
2. On the first line, select an account from the Account field. 
3. On the next line, select the other account you're moving money to or from. 
4. Make sure your debit and credit amounts are in balance.
5. Enter information in the memo section so you'd know why you made the journal entry.
6. Select Save and new or Save and close.

I’m also adding this guide that covers all the information about loan forgiveness: Paycheck Protection Program.

You're always welcome to post here anytime you have other concerns. Our door is always open to help you.

Thanks for your reply. I’m actually hoping someone can provide more specific info. I do my own QuickBooks as I have a pretty fair understanding of accounting. This is something new for me. What type of account are we creating for the forgiveness? I know how to journal entry. My loan is currently listed as a liability and I need to get that out of there. 

Thanks for your reply

@JayrardsJava 

To record PPP loan forgiveness, set up an 'Other Income' account called 'PPP Loan Forgiveness'.  Since PPP loan forgiveness income is non-taxable, you will want to have a separate income account for it.  Then, debit the PPP loan payable liability account and credit the new income account.  That will remove the liability and show the income as a separate amount on your P&L, separate from operating income. 

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