How do I record the purchase of a business? It is a seller-financed purchase agreement where we made down payments and now monthly payments.

Hi there, @reliancerecyclin.

You can record a Bill for the total amount of purchase. Then, when entering monthly payments, you have the option to post them using the Pay bills feature. I'll guide you how.

Follow these steps to record a bill:

1. Select +New.
2. From the Vendors section, choose Bill.
3. Fill in the necessary details.
4. Select Save and close.

Next, let's pay your bills using the steps below:

1. Select +New.
2. Choose Pay bills.
3. Select your payment account.
4. Modify the date.
5. In the Payment column, enter the payment amount.
6. Select Save and close.

Once you fully paid your bill, this will automatically mark as PAID.

Additionally, when you pay your bills through checks, refer to this article for more details: Enter and pay bills.

Then, you can run the Transaction List by Vendor to show you all the transactions for each vendor. You can also add the Open balance and A/P paid columns. Doing so helps you see the remaining balance and know the payment status.

Here's how:

1. Go to Reports.
2. In the Find report by name field, type in "Transaction List by Vendor."
3. Click Customize.
4. Change the reporting period.
5. In the Rows/Columns section, click Change columns.
6. Select Open Balance and A/P paid.
7. Click Run report.

To learn more about navigating your QBO account, check this article: Getting started with QuickBooks Online.

If you need anything else, the Community is the place to go. Have a great day.

Why using A/P account? This is not a short-term, one time payment. Aren't you supposed to create a liability account for all long-term debt and post the monthly payment of principal and interest against it like you will normally do with a loan?

Hey viky,

Thanks for chiming in here! For this situation, it would be best to as your accountant to see what is the best practice. If you don't have one, you can connect with one of our experts. Many offer a free consultation if you are interested in using that! Here's how:

1. Go to this link: Find an Accountant 
2. Enter your City or ZIP code.
3. Click on Find a ProAdvisor.
4. Enter a Location and Filter by business type or industry.
5. Get connected with an expert.

If there's anything else I can do to help, please post them anytime here. I'll be sure to help.