Loans and repayments

Hi there, @JD11_2 4207 .

Thanks for taking the time to reach out to the QuickBooks Community. I hope you're having a great day so far. 

When tracking loans and loan payments, it's important to remember to create an account for each loan. I'm including some steps below to walk you through the process of creating a loan account. 

Here's how: 

1. Go to Settings, then select Chart of accounts.
2. Click on New, then tap on Assets.
3. From the Save account under and Tax form section dropdown, hit Loans to Others.
4. On the Account name field, enter a recognizable name like "Loan - customer name".
5. Select Save without entering an opening balance.

Once you've created the account, you can issue a check for the loan. Here's how: 

1. Go to + New, then click on Check.
2. From the Bank Account dropdown, choose the account you used to fund the loan.
3. On the first line, from the Category dropdown, select the account you created to track loans.
4. On the Amount field, enter the loan amount.
5. Hit Save and close.

Now you're ready to record the payments made from your customer. Please keep in mind: QuickBooks doesn’t 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.

Here's how to record the payment:

1. Go to + New, then select Bank deposit.
2. From the Account dropdown, choose the account you used to fund the loan.
3. On the first line, from the Received from dropdown, click on the name of the customer with the loan.
4. From the Account dropdown, choose the account you created to track loans.
5. From the Amount dropdown, enter the amount they paid.
   Important: When you charge customers with interest, on the second line, select the account you use to track interest income and enter the amount of the interest.
6. Fill out the rest of the fields accordingly.
7. Hit Save and close.

That should do the trick. If you'd like to create an invoice to send to the customer for each loan payment, please check out Track Customer Loans in QuickBooks Online for more information. 

Please don't hesitate to let me know if you have any additional questions or concerns. Take care and have a wonderful day ahead!