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Level 2

We loaned money to a customer, they will be repaying with interest - How to I record the principle and interest amount?

We loaned money to a customer, they will be repaying with interest - How to I record the principle and interest amount?

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QuickBooks Team

We loaned money to a customer, they will be repaying with interest - How to I record the principle and interest amount?

Glad to see you here in the Community, @LindaKP1023.

 

I'd be glad to help you record the principle and interest amount in QuickBooks Desktop (QBDT).

 

The first step to recording a loan for a customer is to determine the purpose of the loan:

  • Are you going to use the loan to close all open invoices?
  • Is the loan intended for other purposes (regardless of whether or not it is a customer) and you intend to write a check?

If the loan's purpose is to cover open invoices, you'll need to:

  1. Create an account to track the loan and its repayment.
  2. Then, enter a journal entry.

If the loan is for a different purpose:

  1. Create an account to track the loan and its repayment.
  2. Issue a check for the loan.
  3. Record customer payments.

I've also added this article about the loan manager in QBDT: QuickBooks Loan Manager. It will help you calculate interest and payment schedules.

 

Let me know how it goes by dropping a comment below. I'm always here to help. Take care!

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Level 2

We loaned money to a customer, they will be repaying with interest - How to I record the principle and interest amount?

We loaned an employee funds to purchase a home. She will be making monthly payments. There is the principle amount and interest will be assessed. What is the best way to record it?

Highlighted
Level 2

We loaned money to a customer, they will be repaying with interest - How to I record the principle and interest amount?

There are no open invoices, we wrote check to pay off the employee debt. I did create an account for the loan. when she pays i will record it to the account but should i create an account for the interest? will it be an asset other asset?

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