Hello, lanacpa22.
Nice to have you here in the Community. We're always here to help record loans in QuickBooks Online.
Before you begin, we suggest setting up the loan in QuickBooks to make the process much easier. After doing so, you can create an expense to record the payment. The steps are listed below:
- Click + New.
- Select Check. Or if you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
- Add a check number if you plan to send an actual check. If you use direct withdrawal or an ETF, enter Debit or ETF in the Check # field.
Then enter the following in the Category Details section of the check:
- On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
- On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
- On additional lines, add any additional fees.
- Select the appropriate accounts from the Category dropdown. When you're done, select Save and close.
That's all there is to it! If you need more information, you can check out this article on making loan payments.
Also, I would recommend seeking assistance from a professional accountant. This way, he/she can help you with proper categorizing of your transactions and selecting the appropriate accounts.
If you have any other questions, please let me know by adding a comment below. I'm always here to help. Have a good day!