I tried this in 2018 Desktop Pro and it kept rejecting it stating it would not accept a negative number

Hello,

Sorry for the late response, is "Loan Interest" the same as the [8100 - Interest Expense] account in QBDT Premier?

Hi Rustler,

I have followed your advice regarding this process successfully, except our purchase of a vehicle also included a $10,000 "loan" from me to my husband for the majority of the downpayment for the vehicle.  Hubby put $2,000 down, for a total of $12,000 down.  I do want to set up the $10,000 as a liability account as he is repaying it monthly.  How would I record this in QBDT ?

In addition, the Bill of Sale has the Extended Warranty amount and the GAP insurance, sales tax, fees, etc. which was all financed.  Should these other items be categorized in the check (expenses) as well, when I record the purchase of the vehicle? (I do know how to set the accounts up, IF I need to).  Thanks for your response.

Victoria H.

Hi Rustler,

I have followed your advice regarding this process successfully, except our purchase of a vehicle also included a $10,000 "loan" from me to my husband for the majority of the downpayment for the vehicle.  Hubby put $2,000 down, for a total of $12,000 down.  I do want to set up the $10,000 as a liability account as he is repaying it monthly.  How would I record this in QBDT ?

In addition, the Bill of Sale has the Extended Warranty amount and the GAP insurance, sales tax, fees, etc. which was all financed.  Should these other items be categorized in the check (expenses) as well, when I record the purchase of the vehicle? (I do know how to set the accounts up, IF I need to).  Thanks for your response.

Victoria H.

Here is a simpler and more clear solution, lets pretend you purchased a Honda CRV for $15,000 with a 2k down payment

Step 1: Add the Vehicle as a Fixed Asset

1. Go to the Chart of Accounts:

   • Click on the Gear icon at the top.

   • Under "Your Company," select "Chart of Accounts."

   • Click on "New."

2. Create a Fixed Asset Account:

   • From the Account Type dropdown, select "Fixed Assets."

   • For the Detail Type, select "Vehicles."

   • Name the account "Honda CRV."

   • Click "Save and Close."

Step 2: Record the Down Payment

1. Create a Journal Entry:

   • Go to the + New icon.

   • Select "Journal Entry."

2. Enter the Down Payment:

   • Date: Enter the date of the purchase.

   • Account: Select the "Honda CRV" fixed asset account.

   • Debit: Enter $2,000 (the amount of the down payment).

   • Account: Select "Business Checking." or whatever account it came from

   • Credit: Enter $2,000 for the business checking line.

   • Click "Save and Close."

Step 3: Record the Loan

1. Create a Long-Term Liability Account:

   • Go to the Chart of Accounts.

   • Click on "New."

   • From the Account Type dropdown, select "Long Term Liabilities."

   • For the Detail Type, select "Notes Payable."

   • Name the account "Honda CRV Loan."

   • Click "Save and Close."

2. Create a Journal Entry for the Loan:

   • Go to the + New icon.

   • Select "Journal Entry."

   • Date: Enter the date of the purchase.

   • Account: Select the "Honda CRV" fixed asset account.

   • Debit: Enter $13,000 (the financed amount).

   • Account: Select "Honda CRV Loan."

   • Credit: Enter $13,000.

   • Click "Save and Close."

Step 4: Record Monthly Loan Payments

1. Create a Recurring Expense:

   • Go to the + New icon.

   • Select "Expense."

   • Payee: Enter the name of the lender.

   • Payment Account: Select "Business Checking."

   • Date: Enter the date of the first loan payment.

   • Amount: Enter  Loan Payment Amount $400 for example

   • Category: Select "Honda CRV Loan" for the principal portion and "Interest Expense" for the interest portion.

   • Click "Make Recurring" and set the frequency to Monthly.... if its monthly

   • Click "Save and Close."

Here is a simpler and more clear solution, lets pretend you purchased a Honda CRV for $15,000 with a 2k down payment

Step 1: Add the Vehicle as a Fixed Asset

1. Go to the Chart of Accounts:

   • Click on the Gear icon at the top.

   • Under "Your Company," select "Chart of Accounts."

   • Click on "New."

2. Create a Fixed Asset Account:

   • From the Account Type dropdown, select "Fixed Assets."

   • For the Detail Type, select "Vehicles."

   • Name the account "Honda CRV."

   • Click "Save and Close."

Step 2: Record the Down Payment

1. Create a Journal Entry:

   • Go to the + New icon.

   • Select "Journal Entry."

2. Enter the Down Payment:

   • Date: Enter the date of the purchase.

   • Account: Select the "Honda CRV" fixed asset account.

   • Debit: Enter $2,000 (the amount of the down payment).

   • Account: Select "Business Checking." or whatever account it came from

   • Credit: Enter $2,000 for the business checking line.

   • Click "Save and Close."

Step 3: Record the Loan

1. Create a Long-Term Liability Account:

   • Go to the Chart of Accounts.

   • Click on "New."

   • From the Account Type dropdown, select "Long Term Liabilities."

   • For the Detail Type, select "Notes Payable."

   • Name the account "Honda CRV Loan."

   • Click "Save and Close."

2. Create a Journal Entry for the Loan:

   • Go to the + New icon.

   • Select "Journal Entry."

   • Date: Enter the date of the purchase.

   • Account: Select the "Honda CRV" fixed asset account.

   • Debit: Enter $13,000 (the financed amount).

   • Account: Select "Honda CRV Loan."

   • Credit: Enter $13,000.

   • Click "Save and Close."

Step 4: Record Monthly Loan Payments

1. Create a Recurring Expense:

   • Go to the + New icon.

   • Select "Expense."

   • Payee: Enter the name of the lender.

   • Payment Account: Select "Business Checking."

   • Date: Enter the date of the first loan payment.

   • Amount: Enter  Loan Payment Amount $400 for example

   • Category: Select "Honda CRV Loan" for the principal portion and "Interest Expense" for the interest portion.

   • Click "Make Recurring" and set the frequency to Monthly.... if its monthly

   • Click "Save and Close."