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stormers148
February 20, 2022
Question

Hi i purchased a commercial property which has a mortgage, how do i add this entry into quickbooks?

  • February 20, 2022
  • 9 replies
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9 replies

KlentB
KlentB
February 20, 2022

I can help you in recording that, stormers148.

 

First, you'll want to set up an asset account to track the commercial property you've purchased. Here's how:

 

  1. Go to the Accounting menu.
  2. Select Chart of Accounts, then click New.
  3. From the Account Type drop-down menu, choose Fixed Assets.
  4. From the Detail Type drop-down menu, select the option that closely describes the asset.
  5. Name the account, then select the Track depreciation of this asset checkbox.
  6. Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
  7. When you're done, select Save and Close.

After that,  set up a liability account to track the mortgage and loan payments. When you're in doubt about the categories to use, you may consult an accounting professional to ensure that everything is recorded accurately.

 

I'm also adding this article to help manage your assets and track depreciation: Depreciate assets in QuickBooks Online.

 

Fill me in if you have any other concerns or follow-up questions. I've got you covered.

stormers148Author
February 20, 2022

Thank you i have followed those steps. What do i do next? the property has GST attached to it and when i look at my GST report nothing has changed?

IntuitAika
February 21, 2022

Thanks for getting back to us, stormers148!

 

You can record an expense transaction, code it with GST and allocate it to the liability account you've set up to offset the mortgage amount. Here's how:

  1. Click on the + New button.
  2. Click on Expense.
  3. Fill out the Payee field, like supplier name, date and payment method.
  4. In the Payment account field, select the account you used to pay the expense/mortgage.
  5. In the Category details, select the liability account created for the mortgage.
  6. Enter the Amount, and GST.
  7. Click on Save and Close when done.

Then, the expense should offset the mortgage amount tracked under the liability account every time you record the expense transaction. And GST amount will be tracked on your BAS when transaction is coded with GST.

 

Feel free to leave a comment below if you have more questions about recording the expense. Enjoy the rest of the day!

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