how to set up morgage loan payments

Hello, Doris. To correctly set up your mortgage loan payments in QuickBooks, you'll need to create a liability account for the mortgage and an expense account for interest payments. Let me guide you through this process.

Follow these steps to create a liability account for the mortgage:

1. Go to the Gear ⚙ icon and select Chart of Accounts.
2. Select the New button.
3. Choose Long Term Liabilities under Account Type▼, then Notes Payable under Detail Type. If you plan to pay the loan by the end of the current fiscal year, pick Other Current Liabilities as the Account Type and Loan Payable as the Detail Type.
4. Type in the account name (e.g., Mortgage) and hit Save.

Set Up an Expense Account for Interest Payments:

1. Navigate to the Gear icon, then Chart of Accounts.
2. Select the New button.
3. Choose Expense as the Account Type, then Interest Paid as the Detail Type.
4. Enter the account name (e.g., Mortgage Interest) and click Save.

After creating the necessary accounts, you’ll need to create a journal entry to enter the initial mortgage loan. It's advisable to consult your accountant to ensure that all accounts and amounts are recorded accurately. If you need an accountant, you can find one through QuickBooks.

After this, we can record the loan repayment, by using a Check. Here’s how to do it:

1. Go to the +New button and click Check.
2. If you plan to send an actual check, enter a check number. For direct withdrawal or EFT, input Debit or EFT in the Check no. field.
3. Head to the Category details section of the check.
4. On the first line, choose the liability account for the loan from the Category dropdown and type in the payment amount.
5. On the second line, select the expense account for the interest under the Category and enter the interest amount.
6. Input any extra fees on additional lines and pick the appropriate accounts.
7. Hit Save and close.

Additionally, feel free to check out this article for more information on the topic: Set up a loan in QuickBooks Online.

For future reference, it's also worth noting to regularly update your account balances and reconcile your accounts to maintain the accuracy of your records.

If you have any other queries or need further assistance with mortgage loans, please feel free to reach out through the thread. The Community and I are here to support you every step of the way.