I have a loan that I will be repaying in 1 year. I need to make 2 interest payments each for 5%. How do I record the future payments as Bills on QBO? to show in A/P

Hi there, amr-ismail-trist.

Keeping your loan records accurate is really important so you won't miss any payment deadlines. I'll help by sharing the steps starting from setting up your loan account to creating bills. However, I highly suggest having this checked with an accounting professional since we'll be doing journal entries, and to make sure your books are accurate.

Set up a liability account.

1. Select Settings ⚙, then select Chart of Accounts.
2. Select New to create a new account.
3. From the Account Type ▼ dropdown, select Non-current liabilities. Note: If you plan to pay off the loan by the end of the current financial year, select Current liabilities instead.
4. From the Detail Type, select Notes Payable (or Loan Payable).
5. Give the account a relevant name, like Loan for the business, Loan account, etc.
6. Select Save and close.

Record the money you got from the loan. This step will increase the balance of the loan account and the asset account where you put the loan you got. 

1. Click + New and select Journal entry.
2. On the first line, select the liability account you just created from the Account dropdown. Enter the loan amount in the Credits column.
3. On the second line, select the bank/asset account from the Account dropdown. Enter the same loan amount in the Debits column.
4. Click Save and close.
   

Record the bill you received. Every time you record a bill against the loan account, the loan balance decreases. 

1. Click +New and select Bill.
2. Select the lending company in the Vendor field.
3. Enter the Terms, the Bill date, and the Bill no.
4. On the first line, select the loan account CATEGORY dropdown and enter the amount in the appropriate field.
5. On the second line, select an expense account to track the interest and enter the amount in the appropriate field.
6. Click Save and close.
   

Here's an article with a different way to record loan repayments for your additional reference: Set up a loan in QuickBooks Online.

Please don't hesitate to reach back out if you need more help tracking your loan. I'll be happy to assist you again. Take care!