mortgage

Good day, bucksbar.

You can set up a mortgage to show principal, interest, and escrow payments in QuickBooks Desktop. Ensure to consult with your accountant for the accounts you need to use. Let me show you the process.

Create three accounts to track escrow payments. Here are the steps:

1. Go to the Lists menu, and choose Chart of Accounts.
2. Right-click anywhere and click New.
3. Create a loan account.
   1. Click the Other Account Types drop-down, choose Long Term Liability, then click Continue.
   2. In the Name field, enter the name of the loan.
   3. Click the Enter Opening Balance button and enter the full (beginning) amount of the loan in the Opening Balance field.
   4. In the as of field, enter the loan origination date.
   5. Click Save & New.
4. Create an escrow account.
   1. From the Type drop-down list, choose Other Current Asset.
   2. Enter a name for the account ( for example, Escrow), the Opening Balance amount (if there have been any prior payments), and the as-of-date.
   3. Click Save & New.
5. Create an expense account.
   1. From the Type drop-down list, choose Expense.
   2. Enter a name for the account (Interest, for example).
   3. Click OK.

Once done, make a mortgage payment. The steps are as follows:

1. From the Banking menu, choose to Write Checks.
2. Choose the appropriate supplier, then enter the amount of the payment.
3. On the Expenses tab, enter the account/s you have created and the appropriate amount/s. Note: QuickBooks does not do loan amortisation.
4. Click Save & Close.
5. Make transfers from the escrow account:
   1. From the Lists menu, choose Chart of Accounts.
   2. Double-click the escrow account to open its Register.
6. Enter the amount in the Decrease column and then select the Expense account.
   1. Note: You can create accounts depending on the expenses that make up your escrow payment.
   2. After making the correct entries, click the Record button.

Here's an article to guide you on how to track loans and their payments for additional reference: Set up a mortgage in QuickBooks Desktop.

I've also added some resources to learn more about tracking loans in QuickBooks:

• Manually track loans in QuickBooks Desktop.
• QuickBooks Loan Manager.

That should do it! If you have other follow-up questions about the process, you can get back to this thread and add details so I can get back to you as soon as I can.