Skip to main content
G
GV3
March 4, 2021
Question

Pay out for a loan a third party paid. School

  • March 4, 2021
  • 1 reply
  • 0 views

Good Morning,

I work for a charter school and just took over the financial side.  The loan had not been recorded on Quicbooks and I did that.  The loan paid in full by another organization.  The payment went straight to the bank.  We will pay the amount for the pay out to them.  How do I show this?

Also, quickbooks has never been reconciled with bank statements since May of last year.  There is a category used in the past named clean up financial.  Can I use this account so my February reconciliation is the same from the bank?

Thank you so much

1 reply

Rubielyn_J
Rubielyn_J
March 5, 2021

I'll walk you through how to record the amount you pay for a loan, @GV3.

 

Let's record it first before recording a payment. This is to ensure that your reports will not display a loss if you only record it as an expense. 

 

First, create a liability account for the loan.

  1. Go to the Gear icon
  2. Select Chart of Accounts.
  3. Click New.
  4. On the pop-up window, choose Other Current Liabilities or Long Term Liabilities for the Account Type.
  5. Choose Loan Payable for the Detail Type.
  6. Enter a name for the account.
  7. Once done, click Save and close.

 

Next, enter the opening balance.

  1. Choose the Plus icon (+)
  2. Click Bank Deposit.
  3. On the Account field drop-down, select the bank account where the loan funds will be deposited.
  4. Enter the date.
  5. In the Account column on the line items, choose the account you created and the amount.
  6. Lastly, choose Save and close.

 

Finally, record the payment.

  1. Click the Plus icon (+).
  2. Select Check/Cheque.
  3. Add a check number if you send an actual check.
  4. Fill in the following information in the Account details.
    1. First line: Liability account for the loan and the amount of payment
    2. Second Line: Expense account for the interest and the amount
    3. Succeeding lines: Any extra fees along with the appropriate accounts.
  5. Click Save and close.

 

For more details, feel free to check out this article: Set up a loan in QuickBooks Online.

 

Moreover, I also encourage you to consult an accountant if you can use the clean-up financial category in reconciling your February data. This is to make sure that your books will not be messed up. 

 

If you need tips and related articles in the future, you can always visit our QuickBooks Community help website.

 

Keep me posted in the comment section down below if you have any other questions. I'll be always around ready to lend a helping hand. Have a great day.

Terms & ConditionsAccessibility statement