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matt48460
Level 1

Set up a loan in QuickBooks Online

Hi!

 

I'd like to set up a loan in QuickBooks online. However, in the Help ("Set up a loan in QuickBooks Online"), the instructions don't follow what I'm seeing in QuickBooks.

 

For example, it says "select Long Term Liabilities" but this option isn't available in the version I'm seeing online.

 

Which option should I choose? This is a personal loan from a family member to help set up the business, to be paid back over more than one year. I've chosen "Current liabilities" and entered -1,000€ as the amount I've been loaned. Is this correct?

 

So, I've tried to enter a payment against the loan, following the same Help article (Step 3: Record a loan payment). Now, when I check in my Chart of Accounts, the loan has increased, from -1,000€ (the original amount) to -1,250€. Clearly this amount is incorrect as the outstanding loan should be 750€ (I'm not sure whether this should be displayed as a negetive or positive figure).

 

Any help on these matters would be greatly appreciated!

 

Cheers,

 

Matt

Solved
Best answer May 07, 2020

Best Answers
Maybelle_S
QuickBooks Team

Set up a loan in QuickBooks Online

Hey there, @matt48460.

 

I can help you set up a loan in QuickBooks Online (QBO).

 

Setting up an account in the Chart of Accounts depends on the region. We can use Other Current Liabilities instead of Long Term Liabilities.

 

Here's how:

  1. Go to the Gear icon, then click the Chart of accounts.
  2. Select New.
  3. From the Account window, select the Account Type drop-down arrow then choose Other Current Liabilities.
  4. In the Detail Type drop-down arrow, select Other Current Liabilities.
  5. Enter a Name for the account.
  6. Select Save and Close.

Once done, you can now create a journal entry to record the loan.

 

Please know that you're always welcome to post if you have any other concerns. Have a great day!

View solution in original post

1 Comment 1
Maybelle_S
QuickBooks Team

Set up a loan in QuickBooks Online

Hey there, @matt48460.

 

I can help you set up a loan in QuickBooks Online (QBO).

 

Setting up an account in the Chart of Accounts depends on the region. We can use Other Current Liabilities instead of Long Term Liabilities.

 

Here's how:

  1. Go to the Gear icon, then click the Chart of accounts.
  2. Select New.
  3. From the Account window, select the Account Type drop-down arrow then choose Other Current Liabilities.
  4. In the Detail Type drop-down arrow, select Other Current Liabilities.
  5. Enter a Name for the account.
  6. Select Save and Close.

Once done, you can now create a journal entry to record the loan.

 

Please know that you're always welcome to post if you have any other concerns. Have a great day!

View solution in original post

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