Loan to a customer

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To clarify, do you mean recording the payment as cash in QuickBooks Online? In your case, you can still use the Check feature to record the loan payments and select Cash as your payment account. To enter regular payments with ease, you can schedule recurring transactions instead.

To start, you'll have to set up a liability account to record the loan. Here's how:

1. Go to the Gear icon and then Chart of Accounts.
2. Select New to create a new account.
3. From the Account Type ▼ dropdown, select Long Term Liabilities. If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities instead.
4. From the Detail Type, select Notes Payable.
5. Give the account a relevant name, like "Loan for a car" or "Covid-19 relief loan."
6. 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.
7. Select Save and close.

Then, follow these steps to create a journal entry to record the loan:

1. Click on the + New button.
2. Select Journal entry.
3. On the first line, select the liability account you just created from the Account dropdown. Enter the loan amount in the Credits column.
4. On the second line, select your bank account from the Account dropdown. Enter the same loan amount in the Debits column.
5. When you're done, select Save and close.

Lastly, you can create a recurring transaction template for the loan repayment.

1. Go to the Gear icon.
2. Under Lists, select Recurring Transactions.
3. Select New.
4. Select Check, and then select OK.
5. Enter a Template name.
6. Choose Scheduled.
   • Creates a series of transactions according to the schedule you set. If you choose for them to be sent via email once created, they will be sent automatically.
   • How you control it: You can choose whether or not to be notified when the transactions occur. In either case, they are recorded without any intervention from you.
   • This type is useful for: Transactions with a fixed schedule and amounts that don't change, such as rent payments, loan payments, and depreciation.
7. On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
8. On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
9. On additional lines, add any additional fees. Select the appropriate accounts from the Category dropdown.
10. Complete the remaining fields and select Save.

Check out these articles for more information:

• Create recurring transactions
• Set up a loan in QuickBooks Online

I've also attached an article that might also be helpful for you in choosing what type of transaction should you use in recording your expenses. Check this out: Bills, Cheques, and Expenses.

Tap me again should you have more questions about recording expenses and payables. The Community always has your back.