How to record loan payments as buyer if seller is carrying my loan?

@7innlodging 

Make sure you have set up the seller's note as a note payable (liability) account in QB.  Then, each month, when you write a check to the seller, assign the principal amount to the note payable and the interest amount to interest expense.  This will reduce the note payable each month by the principal amount and book the interest expense.

Thank you!

Thank you!

I have the same situation , I created a long term liability account , and QuickBooks automatically created an opening balance equity account. Is that how is supposed to be? 

I have the same situation , I created a long term liability account , and QuickBooks automatically created an opening balance equity account. Is that how is supposed to be?

QuickBooks generates an opening balance equity account when you manually enter an opening balance to the liability account created, Brivera83.

It is normally used by QuickBooks as the default offsetting account when creating a liability account (or other accounts) and entering an opening balance. Depending on the situation, it's preferable not to enter an amount and instead record the loan account using another method, like a deposit or journal entry.

I would still recommend consulting with an accountant so they can advise other ways how to record the loan in QuickBooks Online. This is to ensure your books are accounted for properly.

You'll also want to check to manage default and special accounts in your Chart of accounts for additional reference and guidance.

Feel free to post again if you have other questions about managing your accounts. The Community is always here to assist.