Hi there, @cvt15.
Thanks for sharing your concerns here in the Community. Great job in creating a liability account for your loan. You can record the loan payment by writing a check as you normally do.
Debt payments consist of two components: principal and interest. I've got you the steps to record loan payments:
- Go to the Banking menu, then open the Write Check interface.
- Fill out the check to the appropriate bank or lending institution.
- In the account section, you will need to split the payment between the principal and the interest. In the first line, click the drop-down command, select the loan that you set up from the liability account. In the amount column, enter only the principal portion of the loan payment.
- On the second line, select the “Interest Expense” account in the Account column and enter the interest portion of the payment in the amount column.
- Click Save & Close.
If you prefer to enter it using journal entries, here's how:
- Go to the Company menu, then select Make General Journal Entries.
- Enter details in the fields to create your journal entry. Make sure your debits equal your credits.
- Select Save or Save & Close.
For proper posting of debit and credit transactions, I'd suggest you consult an accountant for proper guidance.
To verify if everything has been correctly entered, run a Balance Sheet report. There will be a new asset listed in the fixed asset section at the full purchase price, a long term liability listing principal value, and a cash balance that has decreased accordingly.
Feel free to post again if you have additional questions. I'd be here to help you some more.
