Loan Payable

@aleksandras2 

If you are receiving deposits on a loan you made, it is not a loan payable, it is a note receivable.  Make sure you have a note receivable asset account set up.  The journal entry to record the loan would be to debit note receivable and credit cash for the amount of the loan.

When you download the bank transactions, you can add them or match them if you have entered them already, or exclude them.  You need to split the payment between the note receivable asset account (principal portion of the payment) and interest income account (interest portion of the payment).  This will increase your cash balance, reduce the note receivable balance, and book interest income.

I'm not sure I understand the last part.  Can you explain in more detail?  Did you loan money to a vendor and fund the loan with a credit card charge?

Hi,

Thank you for your response. So the loan was actually made to us, not from us which is why we made it as the loan payable.

Same Problem.

Fist off, I am a QuickBooks noob. I use QuickBooks online and bought a vehicle for my business. I put down a down payment, and then financed the rest. I made a long-term liability for the loan, but did not add any journal entries in the register yet so it says $0.00. I created a Fixed Asset and recorded my down payment since I paid it with my business account that is linked to QuickBooks. So the Asset Register shows the down payment in the journal entries, with the dollar amount showing up under “increase” column.

I used the QuickBooks help chat and it was a long and wild ride but the person or bot helping me walkthrough how to add a loan never figured it out…just kinda had me go round and round and then responded with lots of “hmm…”s.

My question is (I think), how do I add the loan to the asset and then can track each loan payment?

TellCulvers Customer Satisfaction Survey

Thanks for joining us here today, @Hector12.

I'll help share the steps on how you can record a loan for an asset in QuickBooks. It's a good start that you've created a long term-liability account and the asset account. This way, you can easily keep track of your loan transaction. 

You'll want to double-check the journal entry you've created. Make sure you've applied the loan to the proper accounts. Enter the loan amount you're applying to the liability account under the Credit column, and the asset account on the Debit column.

Here's how it should look like.

When you're ready to record the payment, just create a check and use the liability account from the Category drop-down. For more information about the process, check out these articles below.

• Set up a loan in QuickBooks Online.
• How do I record the loan for an asset?

With the above recommendation, you're able to keep track your loan accordingly.

In case you need help with other QuickBooks-related tasks, feel free to browse this link. It has our general topics with articles: View all help for QuickBooks Online.

Drop a reply anytime if you have follow-up questions or concerns with loan transactions. I'm more than happy to answer them for you. Take care and have a great day ahead.

@aleksandras2 

OK, got it.  I was confused since you mentioned deposits (plural).  If you recorded it via a journal entry (debit cash, credit loan payable), that increased both your cash balance and your payable.  Therefore, you can either match the bank deposit or exclude it.

On the second part of your question, do I understand correctly that you made payments to a vendor, that were charged to a credit card, and those payments are reducing the loan payable?  Unless I'm not understanding, you can just enter a credit card charge and assign the charge to the loan payable account.  That will increase your cc balance due and reduce the loan payable.

Yes, the first answer helps so much, thank you! You won't believe how many people I asked this question to.

On the second part, I have an invoice from a vendor, and the individual we have the loan from made a payment on their credit card (I already have this entered in the loan payable). The only way for me to identify how much of a credit that I have floating for this vendor, I recorded this as "bill payment" and recorded the full amount of the credit card payment. Is that correct?

Yes, the first answer helps so much, thank you!

On the second part, I have an invoice from a vendor, and the individual we have the loan from made a payment on their credit card (I already have this entered in the loan payable). The only way for me to identify how much of a credit that I have floating for this vendor, I recorded this as "bill payment" and recorded the full amount of the credit card payment. Is that correct?

@aleksandras2 

Ideally, you would not have used a journal entry to record the bill payment.  You would record the bill payment coming from a bank clearing account.  If you don't have one, set up a bank account in QB called 'clearing account'.  Then, after you have recorded the bill payment coming from the bank clearing account, create a journal entry - debit the bank clearing account and credit the loan payable.  This will put the bill payment into the loan and keep your vendor balance accurate.

If you already entered that bill payment into the loan payable, what journal entry did you use? 

@aleksandras2 

I don't see an example attached.  Try again?

You mentioned you entered an expense charge and an offsetting deposit - that's even more confusing because you didn't make a deposit for the amount of the bill that was paid on your behalf.  Clearly, I'm not understanding something.

You're the best at answering - don't give up on me just yet!

Okay, so what I have is an expense from a vendor. The lender made a payment on our behalf. Should I be entering this transaction in QB although the payment amount that was made was made the lender and not technically us...although we are paying the funds back? 

Was that any better?

I have the same question, I work for a construction co. and handle different LLCs as separate entities

They pay each other's bills with their bank accounts or main owners' Credit cards. I created each LLC their own Quickbooks desktop because like I mentioned they are different entities. The scenario is that if LLC #1 paid for an expense for LLC#2 I know how to record the expense from where it got pay and I use an asset account and name it loan to the (LlC#2) but how do I record the expense to the borrower? I created dummy bank accounts and named them loaners with the LLC name. So that I can record the expense but when you run reports those accounts show (-) for the whole total of accumulated invoices. Please advise. 

the