How to record a loan repayment? (2024)

I've got you, @Julie100. I can help you choose what specific category you can use in recording your loan repayment in QuickBooks.

I'll make sure that you can record your repayment transactions accordingly in your account. Below is the step-by-step procedure on how to track loans in QuickBooks Online.

If you don't have a liability account set up in your account yet, I'd recommend creating it first. This way, we can track your loan repayment transactions accordingly.

You can do the following:

1. Go to theAccountingtab on the left side, then chooseChart of Accounts.
2. Click theNewbutton.
3. In theAccount Typedrop-down, pick eitherLong Term LiabilitiesorCurrent Liabilities(pay off by the end of the current fiscal year).
4. SelectLoan Payablein theDetail Typefield.
5. Type a unique name in the box.
6. ClickSave and close.

After that, create a Journal Entry to record the money you got from the loan. I'll show you how:

1. Go to the+Newand selectJournal entry.
2. Select the liability account you just created from theAccountdrop-down and enter the loan amount in theCreditscolumn.
3. Select the appropriate bank account from the box and type the amount in theDebitfield.
4. ClickSave and close.

Once done, you may now record the repayment by creating a check. Do the following:

1. Go to the+ Newand selectCheck.
2. In theCategorydrop-down, choose the liability account you previously created.
3. Enter the payment amount in the field.
4. Pick the expense account for the interest from theCategorydrop-down and enter the amount.
5. You can add another line if you want to record any additional fees.
6. ClickSave and close.

See this article for the complete steps:Set up a loan in QuickBooks Online.

On top of that, I'd suggest consulting an accountant as well. They can review your business needs and guide you on what specific category to use. Also, they maybe have other ways to record the loan repayment that meets your business needs.

Once everything is in place, you can always run the quick loan report by going to theChart of Accountspage. This way, you can review the transactions with the remaining balance.

I've also added articles about managing vendor transactions, information, and related topics.

• Track customer loans
• Manage Vendors and Expenses

If you have a question about loan payments, feel free to ask me and I'm always here to help you anytime. Keep safe.