cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Intuit
2 helpful votes

QuickBooks Loan Manager

Learn how to track your loan with the help of Loan Manager in QuickBooks Desktop.

QuickBooks Loan Manager helps you calculate interest and payment schedules. We’ll help you get started so you can track your new and existing loans, make repayments, and run different “what-if” scenarios to compare different loan options.

Step 1: Set up the accounts for QuickBooks Loan Manager

Check out the required accounts to set up. If you have these accounts set up already, then you can move to Step 2.

Set up a liability account

Setting up a liability account first is necessary, because you will choose this account later on when you record your loan.

  1. From the Lists menu, select Chart of Accounts.
  2. Select the Account dropdown, then New.
  3. Select Loan, then Continue.
  4. Enter the Account Name, then select Enter Opening Balance.Note: Record the initial loan amount as an opening balance and make sure to use the loan origination date.
  5. Select OK, then Save & Close.

Create a vendor

You have to create a vendor for the bank or financial institution issuing the loan.

  1. From the Vendors menu, select Vendor Center.
  2. Select New Vendor.
  3. Enter the vendor’s name of the bank or financial institution issuing the loan.
  4. Fill out the other needed info.
  5. Select OK.

Set up an expense account

An expense account lets you track the interest payments or fees and charges.

  1. From the Lists menu, select Chart of Accounts.
  2. Select the Account dropdown, then New.
  3. Select Expense, then Continue.
  4. Enter the account name for interest payments or fees and charges.
  5. Select Save & Close.

Set up an escrow account

Escrow is a specific portion of a loan that is held in an account by a third-party until the conditions of the loan are met. An Escrow Account is a QuickBooks Asset Account that tracks the escrow portion of a loan payment. Escrow accounts are commonly used to pay taxes and insurance.

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

Step 2: Record and track your loans

If everything is all set, you can now track your loan in QuickBooks Loan Manager.

How does QuickBooks Loan Manager works?

When a loan is repaid in regular fixed payments, this repayment usually includes both compounded interest and principal installments for the period. As each successive payment is made, the interest portion gradually decreases and the principal portion increases. The QuickBooks Loan Manager creates an Amortization schedule for the duration of the loan, showing how much of each payment is applied to principal, interest, and escrow (additional fees related to the loan).

  1. From the Banking menu, select Loan Manager.
  2. Select Add Loan.
  3. Enter the account info of the loan and select Next.
    • Account Name: Loan Account that you previously set up.
    • Lender: Vendor to which payments will be made.
    • Origination Date: Date from which the loan originates.
    • Original Amount: Full initial amount of the loan.
    • Term: Time it will take to repay the loan in full in weeks, months or years.
  4. Enter the payment information of the loan and select Next.
    • Select the Due Date of Next Payment.
    • Payment Amount: Amount that will be paid each period.
    • Next Payment Number: Only applicable if previous payments have already been made.
    • Escrow Payment Account: Escrow account.
    • (Optional) Select Alert me 10 days before a payment is due.

    Note: If payments have already been made against the loan, you need to enter these as checks, bills or journal entries.

  5. Enter interest information of the loan and select Finish.
    • Interest Rate: Enter the interest rate of the loan. For a 5% interest rate, enter “5”(no quotes), rather than “5%” or “0.05”.
    • Compounding period: Based on what is specified on your loan documentation.
    • Payment Account: Bank account used to pay the loan.
    • Interest Expense Account: Expense account that will track the interest.
    • Fees/Charges Expense Account: Expense account that will track fees and charges of your loan.
  6. Review the loan information. Select Edit Loan Details if necessary.Note: The loan details you entered shows on the Summary tab at the bottom of the Loan Manager.

Step 3: Asses your loan with What If Scenarios tool

You can use this tool to view the effects of other payment amounts, repayment period etc.

  1. Select the What If Scenarios button at the bottom of the Loan manager screen.
  2. From the Choose a Scenario dropdown, select either How much will I pay with a new loan? or Evaluate two new loans.
  3. From the Choose a loan dropdown pick a loan to work with.
  4. Enter the loan criteria and select Calculate.
  5. Select Print to print out the results.
  6. Select OK.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us