Setting up and Recording a Short Term Loan(60 Days)

Sorry forgot one important item... He paid the invoice directly to the packaging company

Hello there Grimayoj, 

Nice to see you in the Community. Let's start by setting up a liability account to record your loan and its payments. That should include the interest you've paid. The next step would be to record the money you got from the loan, in which the steps are linked. Then, record your loan repayment by creating a check. Next, you must select the expense account from the Category drop-down to record the interest accordingly. Let me guide you on how to do so.

1. Go to the + New button.
2. Select Check.
3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an ETF, enter Debit or ETF in the Check # field.
4. On the Category details section, select the liability account for the loan from the Category drop-down. Then, enter the payment amount.
5. On the second line, select the expense account for the interest and enter the amount.
6. On additional lines, add any additional fees (optional).
7. Select Save and close.

For more detailed steps, you can also refer to this article: Set up a loan in QuickBooks Online.

Let me know if you need additional assistance! I will be around. Bye for now. 

So, Why do you create a check?

And need a little more explanation around the interest.. Does QBO automatically calculate the interest each month?

Thanks

Hi there, Grimayoj. 

I can share additional information about recording loans in QuickBooks Online (QBO). 

QuickBooks Online (QBO) does not calculate interest automatically. To manually calculate the interest due on the current payment. Take the loan balance and multiply it by the interest percentage, then divide by 12 for one month’s interest.

For reference, feel free to check this article: Track customer loans in QuickBooks Online. This also includes steps in creating a recurring invoice transaction for monthly loan payments. 

I've added this article to learn more about recording loan from the officer in QBO: Company Loan.

Please let me know how this goes and leave a reply below if you have additional questions about recording loans in QBO. I'm just around the corner to help. Have a good one and keep safe.