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Level 2

Including Mortgage Principle in Budget

Hello, 

 

I am creating my first budget in QB Online and have a question. How can I include a Mortgage Principle in the budget since it is a liability and not an expense? Or, is there another accounting method that needs to happen in which to do this?

 

Thank you,

jbooze1

4 Comments
Level 2

Re: Including Mortgage Principle in Budget

See:

https://quickbooks.intuit.com/learn-support/en-us/chart-of-accounts/set-up-a-mortgage/00/202617

 

I don't think you can include it in the budget per se but you should be able to use the lenders amortization schedule and/or Banking > Loan Manager, to estimate the amount of interest and principal to be paid for a certain period.

 

QuickBooks Team

Re: Including Mortgage Principle in Budget

You can set up a long-term liability account to track your mortgage, @jbooze1

 

First, set up the loan account:

 

  1. Go to the Accounting tab, then click the New button.
  2. Set the Account Type to as Long Term Liabilities and the Detail Type to Loan Payable.
  3. Enter the name of the account, then click Save and close.

Then proceed in recording an opening balance for the loan:

  1. Click the Plus (+) icon, then select Bank Deposit.
  2. Select the bank account where the loan funds will be deposited.
  3. Type in the date of this deposit.
  4. Enter the loan payable account with the amount under the Account column.

Lastly, here's how you can record a loan payment:

  1. Click the Plus (+) icon, then select Check.
  2. In the Category Details section, enter the following information.
  3. First line: Liability account for the loan and the amount of payment.
  4. Second line: Expense account for the interest and the amount.
  5. Succeeding lines: Any additional fees along with the appropriate accounts.
  6. Select Save and close.

See this article for detailed guidance: Set up a loan in QuickBooks Online.

 

For any other questions, drop them in the comments below. I'd be glad to answer them for you.

Level 2

Re: Including Mortgage Principle in Budget

Hi MaryJoeD, 

 

So I would track any Mortgage payments separate to my Budget? I will definitely try what you sent me for tracking my Mortgage.

 

Thank you,

jbooze1

Highlighted
QuickBooks Team

Re: Including Mortgage Principle in Budget

Hi there, @jbooze1.

 

Yes, you can consider separating the Mortgage payments to your budget. However, it'll show on the Budget vs Actual report.

 

To track them separately, you can utilize the Class Tracking feature so you can specify each Mortgage payment and easily find them on the report.

 

Let's turn on the class tracking to get started. Here's how:

 

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. Go to the Advanced menu.
  4. In the Categories section, click the pencil icon to edit.
  5. Put a checkmark beside Track Classes.
  6. Click Save, then Done.

Then, you'll have to create your class lists. Once you're ready, please follow the steps below:

 

  1. Click the Gear icon.
  2. Select All Lists.
  3. Choose Classes, then select New.
  4. Enter the class name. (Example: "Mortgage Payment 1")
  5. Click Save.

Once done, you can create an expense or a check transaction to track each Mortgage payment by class.

 

I've got you an article for more details: Get Started with Class Tracking in QuickBooks Online.

 

You might also want to read this article to learn how to manage your budgets: Create, Edit, and Manage Budgets.

 

Please know that you can always get back to this post if you have any other questions. We're always here to help.

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