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Simple
June 20, 2024
Question

How to post monthly mortgage payments in general ledger?

  • June 20, 2024
  • 1 reply
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I use QB 2022 Desktop. How do I post monthly mortgage payments with principal and interest amounts in General Journal ledger so it keeps my chart of accounts accurate?

1 reply

Rainflurry
Rainflurry
June 20, 2024

@Simple 

 

You have a couple options:

 

1) The best way is to create a bill breaking out the principal and interest portions and then pay the bill.

2) Write a check (use check # EFT or whatever if you pay electronically) and break out the principal and interest portions on the "check".

 

The difference between the two options is that, if you're on accrual basis, the principal reduction and interest expense are recorded as of the bill date, not the payment date.  If you use a check, the principal reduction and interest expense are recorded as of the check date.  If you're on cash basis, the principal reduction and interest expense are recorded as of the bill payment/check date, not the date of the bill.  So, it's quicker to create a check if you're on cash basis.

    S
    SimpleAuthor
    June 20, 2024

    Thank you! The monthly payment is automatic w/d with the bank. In my QB desktop I have been going under “banking” then “write check” and I post the interest and principals as two separate line items in the body.

    Do I also need to post it in the general ledger?

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