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krucki
Level 2

Setting up a car loan

I'm trying to set up a car loan in QuickBooks. I already set up the long term liabilities account and entered the loan amount. Do I have to set up a fixed asset account also? 

 

If I have to set up a fixed asset account, which account do I apply the monthly car payments to? 

 

thank you!

 

 

3 Comments 3
TirzahC
Level 6

Setting up a car loan

It’s our pleasure to help, krucki.

 

Yes, you can create a fixed asset account where the equipment will be posted. Fixed Assets are the purchased items for long-term use. 

 

Here's how to create an account: 

  1. Go to the Gear icon at the top.
  2. Under Your Company column, choose Chart of Accounts.
  3. On the top right, select New.
  4. From the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Select Save and Close.

 

For additional information, you can refer to this article: 

You can also check with your accountant for guidance. This way, we ensure the accuracy of your books after recording this.

 

Please click this article on how to set up a particular account to manually track depreciation using journal entries: Depreciate assets in QuickBooks Online.

 

You can always get back to us if ever you have other questions or concerns in the future.

krucki
Level 2

Setting up a car loan

So if i have a loan account and a fixed asset loan, which account am I applying the payments to? also, how do I get the other balance down ?

Charies_M
Moderator

Setting up a car loan

Welcome back to this thread, krucki.

 

You'll be applying the payments to a loan account. Learn more about this by visiting this article: Set up a loan in QuickBooks Online.

 

To get the balance down, you might need to create a Journal Entry for that. Before doing so, I recommend consulting your accountant to help you in choosing the right accounts to debit and credit.

 

Here's how:

  1. Go to the + New icon.
  2. Select Journal entry.
  3. Fill in the necessary information.
  4. Click Save.

In case you want to review the entries made, you can pull up or print a report for Journal Entries.

 

To do that:

  1. Go to the Search icon then choose Advanced Search.
  2. Filter your search to Journal Entries. Add additional filters such as Reference no., as necessary.
  3. Select Search, then choose the desired Journal Entry.
  4. Select More, then choose Transaction journal.
  5. To print, select the Print icon in the upper right of the report.

Be sure to get back to me if you have additional questions. It would be my pleasure to help. Have a good one!

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