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drcynpizzulli
Level 2

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

 
Solved
Best answer May 31, 2020

Best Answers
MarshallA
Intuit

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hello,

 

Let me answer your question please.

 

No, you cannot do this automatically in QuickBooks Online.  QBO does not have an amortization feature built in.  You can suggest this feature by going to the gear icon and clicking feedback.

 

Calculations of interest and principle would need to be done manually and then entered into QBO.

 

Here is the article on how to do the manual transactions but the short answer to your question is "No, QuickBooks Online cannot do this automatically."

 

https://quickbooks.intuit.com/learn-support/en-us/journal-entries/does-quickbooks-online-have-an-amo...

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9 Comments 9
SarahannC
Moderator

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hi there, drcynpizzulli.

 

Let me share some information on how to manage and process amortization of mortgage within QuickBooks Online. 

 

Creating an expense helps us to track the mortgage in the Online product. We'll be using two lines in this transaction to record the loan account and interest expense account. To guide you further, you can follow the steps below:

 

  1. Go to the +New button.
  2. Click Expense under the Vendor column.
  3. Enter the needed details such as the name of the customer, payment account, payment date, payment method. 
  4. Select your loan account under the Category details. Then, enter the amount paid off for the principal loan.
  5. On the second line, select the interest expense account and enter the interest amount as well. 
  6. Once done, I recommend reviewing it one more time to make sure that everything is correct.
  7. Then, Save and Close

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Afterward, you can create a journal entry in handling the amortization of intangible assets. We can manually create an expense account in the chart of accounts to track the amortization. However, it would be best to seek advice with your accountant in this process. They can guide you further and help you ensure that the accounts you're using are the appropriate ones.

 

Also, you may want to check out this article for additional details about it: Does QuickBooks Online have an amortization schedule?
 

If you have other questions with the Online product, just add another post below. I'll help you figure them out as soon as possible. Take care!

drcynpizzulli
Level 2

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

This did not answer my question.  According to what you're saying, I'd have to manually enter the interest/principal (which changes every month in amortization) each time I make a payment right?  Is there no way to set this up so that when the payment comes through the interest automatically calculated?  I'm able to to this in quicken and I'm told it can be done in quickbooks desktop.  Why not here?

RusnaBrpakpahan
Level 3

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hi There ;) 

To process amortization of debts with a check:

 

  • Select + New.
  • Select Check.
  • From the Payee ▼ drop-down menu, select a customer.
  • From the Bank Account ▼ drop-down menu, select an account.
  • Enter a Mailing address and a Payment date.
  • Choose a Location,Project or Class ▼ if applicable (and turned on).

 

 

  • If this is a hand-written check, enter a Check no and appropriate Payment date.

 

 

  • Under Category, select the loan account.
  • Enter a description.
  • Under enter the Amount paid off for the principal loan.

 

  1. On line 2, enter the interest expense account and the interest amount under Amount.
  2. Enter a description.
  3. Note: The amount on your check must equal the total of the lines listing principal and interest. For specific information on what accounts should be used, consult your accountant or bookkeeper.
  4. Enter notes under Memo.
  5. Select Save and Close.

To process amortization of debts with as an expense:

 

  • Select + New.
  • Select Expense.
  • From the Payee ▼ drop-down menu, select a customer.
  • From the Payment account ▼ drop-down menu, select an account.

 

 

  • Select a Payment date.
  • From the Payment method ▼ drop-down menu, select a payment.

 

 

  • Under Category, select the loan account.
  • Enter a description.
  • Under Amount, enter the amount paid off for the principal loan.

 

  1. On line 2, enter the interest expense account.
  2. Enter an interest amount under Amount.
  3. Follow the same steps above done for line 1.
  4. Enter notes under Memo.
  5. Select Save and Close.

To handle the amortization of intangible assets, you can create a journal entry to deplete it. To record this transaction you would normally have an expense account setup to track amortization, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortization. Again, you would want to consult your accountant or bookkeeper to make sure you are using the appropriate accounts.

Pabz_L
QuickBooks Team

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hello there, @drcynpizzulli.

 

Let me share some information about recording customer payments in QuickBooks Online.

 

If you're charging the customer with interest, QuickBooks Online (QBO) does not calculate interest automatically. What you can do is, take the loan balance and multiply by the interest percentage, then divide by 12 for one month’s interest.  

 

To record customer payments, here’s how. 

 

  1. Select + New.
  2. Select Bank Deposits.
  3. Make sure the appropriate Deposit to account is selected.
  4. In the Add funds to this deposit section, enter the following information:
  • Received from: Customer Name
  • Account: The customer loan account
  • Memo: Enter a memo that helps record-keeping
  • Pmt Method: Choose cheque, cash etc.
  • Ref #: Enter the cheque number
  • Class: If you are using Class tracking
  • Amount: Amount of the cheque
  1. Select Save and close.

 

You may refer to this article and look for record customer payments for more detailed information on customer payments in QuickBooks Online. Customer payments.

 

You can also use this handy article to track customer loans. Track a loan to a customer.

 

Feel free to fill me in if you have any other questions. Keep safe.

drcynpizzulli
Level 2

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

I'm not sure what your reply has to do with my mortgage payment - I am the property owner of a rental property and I have to keep track of principal vs interest.  I am not lending any money to a client.

MarshallA
Intuit

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hello,

 

Let me answer your question please.

 

No, you cannot do this automatically in QuickBooks Online.  QBO does not have an amortization feature built in.  You can suggest this feature by going to the gear icon and clicking feedback.

 

Calculations of interest and principle would need to be done manually and then entered into QBO.

 

Here is the article on how to do the manual transactions but the short answer to your question is "No, QuickBooks Online cannot do this automatically."

 

https://quickbooks.intuit.com/learn-support/en-us/journal-entries/does-quickbooks-online-have-an-amo...

drcynpizzulli
Level 2

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Ok so I guess that is fine....

But then do business owners tend to have BOTH the desktop and online versions? What benefits would that have for me as an owner if any?

 

Is it common practice for folks to just to the payment manually every month???

MarshallA
Intuit

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Hello,

 

I have heard of some people using desktop just to do the calculations and then enter them into QuickBooks Online.  Or there are Excel and GoogleSheet templates that will do amortization for you and then you take those figures and enter them manually into QuickBooks Online.

drcynpizzulli
Level 2

How do I manage amortization of mortgage with quickbooks online when I don't have quickbooks for desktop?

Thank you....I will suggest it.

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