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PremierRef2019
Level 2

Vehicles

Our company purchased a vehicle and we are making monthly payments on the loan. How do I set this up in Quickbooks as far as Chart of Accounts? 

Solved
Best answer January 11, 2022

Best Answers
MichelleBh
Moderator

Vehicles

I'll help you how to record your loan in your QuickBooks Desktop, @PremierRef2019. This way, you can start managing them in your account. 

 

To begin with, let's create a liability account if you don't have this yet. Follow the steps below: 

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Right-click anywhere and click New.
  3. Pick Long Term Liability in the Other Account Types drop-down, then tap Continue
  4. Enter Account Name in the field. 
  5. Complete the necessary fields, then hit Save & Close.

 

Next is to set up the vendor or lending company profile to personalize the transactions. Proceed as follows:

 

  1. Go to the Vendors menu, then select Vendor Center.
  2. Choose New Vendor and enter the bank name or the company you need to pay for the loan.
  3. Click OK

 

After that, create an expense account to track the loan interest payments or fees. Do the following:

 

  1. Press Ctrl+ A to open the Chart of Accounts page, then right-click and select New
  2. Select Expense and click Continue
  3. Enter a unique name in the field and hit Save & Close

 

Following that, let's record the loan amount by creating a Journal Entry (JE). For a non-cash loan, you'll need to set up an asset account first. Please follow the first steps I outlined above about creating a liability account. Just make sure to choose Asset

 

Once done, proceed in creating the JE. Do the following:

 

  1. Go to the Company menu and select Make General Journal Entries.
  2. Complete the Date and Entry No.
  3. Select the asset account and input the amount in the Debit field.
  4. Pick the liability and type the same amount in the Credit box. 
  5. Click Save and close

 

After the payment is complete, record it in QuickBooks by writing a Check. For the instructions, check out this article: Manually track loans in QuickBooks Desktop.

 

Did you know that you can memorize transactions and set up a reminder for your upcoming payments in QuickBooks? To learn more about the process, click the following links below: 

 

 

I always check my notifications to keep track of responses. That said, please feel free to tag my name in the comments area if you have a follow-up question. Happy to help you again. Take care, PremierRef2019.

View solution in original post

2 Comments 2
MichelleBh
Moderator

Vehicles

I'll help you how to record your loan in your QuickBooks Desktop, @PremierRef2019. This way, you can start managing them in your account. 

 

To begin with, let's create a liability account if you don't have this yet. Follow the steps below: 

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Right-click anywhere and click New.
  3. Pick Long Term Liability in the Other Account Types drop-down, then tap Continue
  4. Enter Account Name in the field. 
  5. Complete the necessary fields, then hit Save & Close.

 

Next is to set up the vendor or lending company profile to personalize the transactions. Proceed as follows:

 

  1. Go to the Vendors menu, then select Vendor Center.
  2. Choose New Vendor and enter the bank name or the company you need to pay for the loan.
  3. Click OK

 

After that, create an expense account to track the loan interest payments or fees. Do the following:

 

  1. Press Ctrl+ A to open the Chart of Accounts page, then right-click and select New
  2. Select Expense and click Continue
  3. Enter a unique name in the field and hit Save & Close

 

Following that, let's record the loan amount by creating a Journal Entry (JE). For a non-cash loan, you'll need to set up an asset account first. Please follow the first steps I outlined above about creating a liability account. Just make sure to choose Asset

 

Once done, proceed in creating the JE. Do the following:

 

  1. Go to the Company menu and select Make General Journal Entries.
  2. Complete the Date and Entry No.
  3. Select the asset account and input the amount in the Debit field.
  4. Pick the liability and type the same amount in the Credit box. 
  5. Click Save and close

 

After the payment is complete, record it in QuickBooks by writing a Check. For the instructions, check out this article: Manually track loans in QuickBooks Desktop.

 

Did you know that you can memorize transactions and set up a reminder for your upcoming payments in QuickBooks? To learn more about the process, click the following links below: 

 

 

I always check my notifications to keep track of responses. That said, please feel free to tag my name in the comments area if you have a follow-up question. Happy to help you again. Take care, PremierRef2019.

PremierRef2019
Level 2

Vehicles

Thank you for your help!! This helped alot!

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