Vendor Loan

Thank you for being here, shafferm. Let me help with your inquiry regarding loan management in QuickBooks.

Are you the one who took a loan from a vendor? If so, I'll share the steps on how you can set up a loan and how to record the payment as well. 

To get started, you need to set up a liability account. Here are the steps you need to follow: 

1. Go to the Lists menu and select Chart of Accounts.
2. Right-click anywhere, then click New.
3. Select Other Account Types, then select Other Current Liability if it's a short-term loan or Long Term Liability if it's payable for a longer period.
4. Click Continue and enter all other details of the account.
5. Select Save & Close.

Next, create an expense account to track interest payments or fees. Let me show you how:

1. Go back to your Chart of Accounts. 
2. Right-click anywhere, then select New.
3. Select Expense, then Continue.
4. Enter the account name for the interest payments or fees.
5. Click Save & Close.

After that, you can record the loan as a bank deposit (cash loan) or through a journal entry (non-cash loans). You can refer to the following articles for detailed instructions: 

• Create A Journal Entry In QuickBooks Desktop For Windows Or Mac
• Record And Make Bank Deposits In QuickBooks Desktop

Lastly, create a check to record or apply the payment. Here's an article as a guide: Create, Modify, And Print Checks In QuickBooks Desktop.

You can also check out this article that thoroughly discusses the process of manually recording loans in the program: Manually Track Loans In QuickBooks Desktop.

If you are the one lending money instead of borrowing it, the process would be different. In this case, you can create an asset account and use vendor credit to write off or deduct the payment if you want it to apply to your existing bills. 

You can refer to these articles for guidance:

• Add, Edit, Or Delete Accounts In QuickBooks Desktop
• Write Off Customer And Vendor Balances

However,  I would strongly recommend reaching out to your accountant for additional guidance to ensure everything is recorded properly when it comes to managing loans in QuickBooks.

Feel free to explore or save these additional articles as well, in case you might need them in the future:

• Track Your Cash Flow in QuickBooks Desktop
• Set Up A Mortgage In QuickBooks Desktop

Don't hesitate to always ask for help or reply to me if you have follow-up questions with any of the steps above, shafferm. The Community is open 24/7 to make sure all your inquiries are taken care of.

Hi there!  Thank you for the response.  When it comes to the check, would the loan payment & interest portion be entered as a negative to adjust the check amount? 

Hello there, Shafferm. 

I appreciate you returning to the thread with further inquiries regarding your vendor loan in your QuickBooks Desktop (QBDT). 

When recording your check with the loan payment and interest, you should enter the check amount as positive since the loan payment is a fee and the interest is a charge of a used asset. 

Furthermore, refer to this article to know more about recording your loan in QBO: Set up a loan in QuickBooks Online. 

In addition, you can check this article for information on how to write off debts if your customer cannot collect them: Write off bad debt in QuickBooks Online.

If you need additional assistance recording your vendor loan, the Community is here to help you. Just let us know by commenting below. Take care, and have a great day ahead!

This reply would be accurate if you were receiving a loan FROM instead of making a loan to someone.