How to record loan transactions? cashreceived from loans, and payments made to repay loan. how pls?

Recording a loan transaction in QuickBooks is just an easy process, @accounting-ygpso.

To start, you’ll want to set up a liability account. This way, you can record the loan accurately. Here’s how you do it:

1. Select the Gear icon at the top.
2. Choose Chart of Accounts, then select the New button.
3. From the Account Type dropdown, choose Non-current liabilities.
4. From the Detail Type dropdown, select Notes Payable or Loan Payable.
5. Enter a name.
6. Choose when you want to start tracking your finances.
7. Select Save and close.

Then, you can now record the amount you got from the loan. Refer to the steps below:

1. Select the + New button.
2. Choose Journal entry.
3. From the first Account dropdown, select the liability account you just created.
4. Select the bank account on the second line. Please know that this instruction is only possible if you put all the loan amount right into your bank. Otherwise, you’ll need to reach out to your accountant for assistance.
5. Enter the same amount in the Credits and Debits column, then save.

You can use this reference for complete instructions: Set up a loan in QuickBooks Online. It includes steps on how you can enter each repayment.

Once everything is good, you can categorise and match your transactions in the program. Then, use this reference to ensure your account are balanced and accurate: Reconcile an account in QuickBooks Online.

If you have any other questions or concerns besides managing your loan transactions, don’t hesitate to add a comment below. I’ll be here. Have a good day and always take care!

Hi Madelyn, thank you so much for your quick response. 

clarification: 

1.) referring to https://quickbooks.intuit.com/learn-support/global/loans/set-up-a-loan-in-quickbooks-online/00/38146... ; 

Step 1: Set up a liability account to record what you owe: 

under item #6: 

1. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.

SCENARIO: loan amount P100k . 

monthly interest 2% = P2K monthly from may14 to dec14 = 8mos x 2k = 16k 

total due: 116k

QUESTION 1: Under the balance field, which amount should i input?

the 100k, or the 116k?

Hi there, @accounting-ygpso. Glad to see you back in the Community. I can share more details on how to set up an account for your loan in QuickBooks Online (QBO).

The account you're creating is for your loan, you can enter the 100k to track it properly. The interests and fees are for the Expense account when you record the payment.

You can create another expense account specific to your loan so you can track the interest you've paid.

Now, when you enter the loan payment, create a Check transaction and enter the following details:

• First line: Liability account and amount paid.
• Second line: Expense account and interest paid.
• Third line: Any fees included such as bank fees, transaction fees, or overdue fees.

I also recommend speaking with your accountant if you need further assistance that can affect your books. They will check into your company details and give you the best advice.

Once you're good with recording your loan, you can proceed with matching and categorizing your account. See the reference shared by my colleague for more information.

I'll be around if you have any QuickBooks-related concerns. Please don't hesitate to let me know in the comment section. Take care and more power to your business!

Hi mars, im really concern on how really is the proper way to record loan repayments/interest,etc. 

the previous instruction given by QBO was:

::::, you can now record the amount you got from the loan. Refer to the steps below:

1. Select the + New button.
2. Choose Journal entry.
3. From the first Account dropdown, select the liability account you just created.
4. Select the bank account on the second line. Please know that this instruction is only possible if you put all the loan amount right into your bank. Otherwise, you’ll need to reach out to your accountant for assistance.
5. Enter the same amount in the Credits and Debits column, then save.

means JOURNAL ENTRY 

vs. 

EXPENSE 

which one should i really choose?

Hi accounting-ygpso,

I'm here to share some information on how you can keep track of the loan repayments.

We use a journal entry to record the loan you've received. For recording the loan repayment, you'll have to enter a cheque or expense transaction. Here's how:

1. From the + New button, select either Cheque or Expense.
2. Enter the necessary details.
3. Click Save and close.

If you prefer to record the payment using a journal entry, I'd suggest reaching out to your accountant. This way, they can guide you on how to do so without messing up your account.

Once everything is good, you can categorise and match your transactions. Then, reconcile your account to ensure they're balanced and accurate: Reconcile an account in QuickBooks Online.

I'll be around if you have any QuickBooks-related concerns. Please don't hesitate to let me know in the comment section.

hi, 

so expenses tab is better, compare to journal entry right?

Hello, I already set up a liability account under Chart of Account specifically for LOANS that I have received.

To record the amount that I got from the loan, can I use the "SALES RECEIPT" feature instead of JOURNAL ENTRY?

Under DEPOSIT TO: select the LOANS liability chart of account that i just created

I appreciate your time getting back to us, accounting-ygpso.

We're glad to know that a liability account is already setup. I'd like to add some additional details in using the journal entry for the loan.

In QuickBooks, a sales receipt is used when your customer immediately pays for the products or services at the time of sale. If you plan to use your loan money in a different way, please reach out to your accountant. This process can get tricky and they know how to handle the situation and ensure that your books are accurate. Don't have an accountant? Please visit our Intuit Find-A-ProAdvisor site to find certified professionals near you.

With regard to your situation, a journal entry is required if you plan to put the money directly into your bank account. Doing so helps put the entire loan amount into your bank account. This way, whenever you record expenses or purchases, you can select your bank account as the payment account

To learn more about the sales receipt and the loan process, please read these articles: 

• Set up a loan in QuickBooks Online
• Create and send sales receipts in QuickBooks Online

Please feel free to reply again if you have any additional questions about the details I've shared above or need help with other task. I'll be around to provide the solutions. Take care and stay safe.