Does anyone know how to record a bank loan transaction?

Hi omandap-cga,

Welcome to Community!  QuickBooks Online is a dynamic program designed to accomplish all of your daily bookkeeping tasks seamlessly.  I'd be glad to assist!

Your first step is to create a liability account to track the loan.  Here's how;

1. Open your Settings ⚙ and select Chart of accounts

2. Select New to create a new account.

3. Use the Account Type ▼ dropdown and choose Long-term Liabilities.

Note: 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 ▼ dropdown, select Notes Payable (or Loan Payable)

5. Give the account a name, like "Loan for xxx" 

6. Choose when you want to start tracking your finances. In the Unpaid 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. Hit Save and Close

Each time you want to make a payment towards the loan, you can record it against the account, in one of two ways.  I'll provide both options so you can choose the best fit.

Option #1; 

If you plan to put the loan directly into your bank account, follow these steps;

1. From the left menu select + New and then Journal entry

2. On the first line, select the liability account you just created from the Account dropdown, then enter the loan amount in the Credits column

3. On the second line, select your bank account from the Account dropdown. Enter the same loan amount in the Debits column

4. When you're done, hit Save and close

Option #2;

If you decide to use the money right away instead of putting it in a bank account, reach out to your accountant. This can get tricky and they can provide their expertise and best course of action.  If you don't have an accountant We can help you find one in your local area.

Note: To pay and amortize the debt of an intangible asset, see the Amortization schedule in QuickBooks Online.

Follow these steps to record a loan repayment;

1. Select + New

2. Choose Cheque

3. Enter the Payee, Bank account, Payment date and Cheque number if you plan to send an actual cheque. If you use direct withdrawal or an EFT, enter Debit or EFT in the Cheque no. field

4. Complete the Category details by selecting the liability account for the loan from the category dropdown menu, then enter the Payment amount, on the first line

5. On the second line, select the expense account for the interest from the category dropdown. Then enter the interest amount

6. On additional lines, add any additional fees. Select the appropriate accounts from the Category dropdown

7. When you're done, hit Save and close.

Should you require additional assistance, please don't hesitate to contact us.  It would be our pleasure to work with you in real time, and ensure you're able to record your loan and associated payments with confidence!

Schedule a Callback or start a Chat: click (?) Help in the upper right in QuickBooks Online > enter "Contact support" > hit Contact Us > provide a brief summary of your situation > hit Let's Talk > choose Get a callback or Start a Chat.

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Feel free to reach out again, if any other questions come to mind.  We're always happy to help!