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A
AnnetteS2
February 19, 2020
Question

Categorizing an auto loan down payment expense on the register

  • February 19, 2020
  • 6 replies
  • 60 views

I understand how to create a journal entry for the purchase of a vehicle with a loan and down payment.  My question is now when I am recording the transactions and the check payment for the down payment clears and shows up on the register... how to categorize it?  Because if I add it to the vehicle asset account I created it seems to increase the asset amount but I already accounted for the down payment in the original journal entry.  If I decrease it from the loan liability this is incorrect as well because it is not part of the loan contract.  Thank you.  

6 replies

Rustler
Rustler
Level 15
February 19, 2020

edit the journal entry and delete the down payment part of it

then enter the actual payment in banking and use the fixed asset account as the expense (reason) for the payment

A
AnnetteS2Author
February 19, 2020

Thank you.  In the journal entry it will not let me delete the down payment and save the entry because the credits and debits become unbalanced.  Am I doing something wrong here?

N
Nickey1989
October 3, 2022

I know this is very old, but when you remove the down payment and it unbalances the journal entry. You would balance it by selecting which ever bank the check would be coming out of for the down payment, that way when you reconcile that account by entering the check for the down payment when it clears, it will reduce the Down Payment.

T
Texas2020
April 16, 2020

Can you include the down payment in the original loan balance?  When the check is issued, it will reduce the amount due.    Not sure if that helps, but a suggestion.

G
GraceC
Level 4
April 16, 2020

Hello there, @Texas2020.

 

You'll want to create an account so you can use it to track your loan balances.

 

Here's how:

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Hit New.
  4. Choose an appropriate account type and detail type of your account.
  5. Enter Wash Account as the name of your account.
  6. Click Save and Close.

In addition, here's an article you can read to learn more about how you can create a new account: Create a new account in your chart of accounts in QuickBooks Online.

 

Please feel free to add a post/comment below if you have any other questions. I'll be always here to help you. Have a great day ahead!

P
plinker
July 5, 2020

Hi Grace,

 

Could you be more specific about step 4? The question is regarding how to categorize an auto loan payment and you provided the ambiguous response of "choose the appropriate account type and detail type of your account." 

 

So the question is what is the appropriate account type for a vehicle purchase down payment? 

 

 

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