Notes Payable

Hi smm9bv,

Welcome and thank you for posting about your notes payable. I'm happy to share information about recording your payment.

You can record your wire transfer payment as a check. Just put WT in the check number field to indicate that it was processed via wire transfer.

By the way, you haven't specified the product you use, so I'll share the articles for QB Online and QB Desktop. Then, you can click the one that is applicable to you. Both of them have details about recording loan/notes payable repayments.

• Set up a loan in QuickBooks Online
• Manually track loans in QuickBooks Desktop

If you need more help, feel free to go back to this thread. Have a good day!

Thanks, JessT. So if we've already repaid the notes payable, what would I do instead of step 3? 

Hello again, @smm9bv.

Since you've already repaid the notes payable, this time, you'll need to link the payment so that it will show you've paid. To do so, I recommend checking the recorded payment and ensuring that the liability account for the notes payable is selected.

You can see Step 3 on this article for a guide: Set up a loan in QuickBooks Online.

For future help, I'm also attaching this link that you can read for guidance in reconciling your accounts: Reconcile an account in QuickBooks Online. This helps you ensure your accounts are well accounted for.

Feel free to add a comment if you have additional questions. I'm here to answer them for you. Wishing you and your business continued success.

I'm having a similar issue and the responses don't make sense to me. We had the loan repaid via a wire transfer so it shows up in our bank transactions. If I categorize it as the loan, then it shows as an expense, which isn't correct. But it's not a transfer or credit card payment either. So how do you record it? Step 3 in the article linked talks about a new check not a payment that was already made. I tried doing a new check to record the wire transfer and then match it but that didn't work either.

Hi jh93!

Let me assist you in posting the wire transfer transactions.

You'll want to make sure to select the liability account for the loan from the Category dropdown in the Category Details section when creating a check. For the downloaded transactions, you can select the same liability account under the Category drop-down. This makes the wire transfer transaction be posted as a payment.

Please check these links if you need help in categorizing downloaded transactions and balancing your accounts: 

• Categorize and match online bank transactions in QuickBooks Online

• Reconcile an account in QuickBooks Online

Keep on posting here if you need more help with tracking loans. Stay safe!

Do you have any advice for handling transactions when your loan account is connected to QBO, where the transactions come in from the bank? I like having this option to have the account connected; however, figuring out how to match everything, while accounting for the interest and principal portion seems challenging for some reason. I am a former CPA, so I understand debits and credits, and I can make AJE's to adjust wherever. I just wanted to find out how to handle transactions if the loan account is actually connected to QBO.

Thanks for joining the Community and getting involved with this thread, slwalton.

After downloading your latest transactions from the account, you can begin reviewing and categorizing your downloaded transactions from the For review tab.

Here's how to match a downloaded transaction with an existing transaction record:
 

1. Find a downloaded transaction that says Match in its Action column.
2. Take note of its Date, Description, Payee, and amount spent or received.
3. Click your downloaded transaction to expand its view.
4. Review the Matching records found. These are possible matching records you've already entered in your books.
5. Hit the link next to each match to view more details.
6. Confirm you've found your correct match. In particular, review the Deposit to, Payment method, and Bank account fields on forms for your existing transaction.
7. If you've located the correct match, close your open transaction.
8. Select Match.

If you don't see a match for some transactions, there's a number of reasons why this can occur:
 

• The amounts don't match.
• Their payees don't match.
• The payment has been reconciled.
• The transaction is already matched to something else.
• The dates don't match or aren't close enough to eachother.
• The bank account on your payment isn't the same as your bank where the match is located.
• The transaction is older than 6 months. If this occurs, you can still find a match by using your Find match option.
• There's a multicurrency issue with your exchange rates, or the transaction doesn't pass through your home currency at some point.

You can also categorize and match transactions in other ways.

I've additionally included a couple detailed resources about working with loans and journal entries which may come in handy moving forward: 
 

• Set up & manage loans
• Create journal entries

Please feel welcome to send a reply if there's any additional questions. Have a lovely day!