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Chapter 17. Recording Liabilities > Using the QuickBooks Loan Manager

Using the QuickBooks Loan Manager

You can simplify your loan payments using the Loan Manager that comes with your QuickBooks program. Enter basic information about your loan, including the starting date, interest rate, number of payments you will make, and amount you will pay; QuickBooks takes care of calculating how much of each payment is principal and interest. When it's time to make a payment, open the Loan Manager and click the Set Up Payment button to initiate a payment with the interest and principal recorded correctly.

Use the QuickBooks Loan Manager

Select Loan Manager from the Banking menu.

Click the Add A Loan button.

Enter the liability account where the loan balance is recorded.

Enter the name of the lender.

Enter the date on which the loan was initiated.

Enter the principal balance.

Enter the number of payments you will make.

Enter the frequency with which you will make payments.

Click Next.

Enter the due date of the next payment.

Enter the payment amount.

Enter the number of the next payment.

Enter the payment frequency.

Enter escrow payment information if applicable.

Check here if you want a 10-day advance warning of the payment due date.

Click Next.

Did You Know?

Escrow payments increase the amount of the loan payments. Mortgages are the most common type of loan that include escrow payments. Escrow payments are payments made to a separate fund that is held by the lending institution and used to pay such items as property taxes and insurance.


Enter the interest rate.

Enter the frequency with which interest is compounded.

Enter the account from which payments will be drawn.

Enter the account in which interest expense should be recorded.

Enter the account in which any bank fees or service charges should be recorded.

Click Finish.

Click the Payment Schedule tab to see a detailed list of how your payments will be recorded.

Click Set Up Payment to open the check window and issue a payment for this loan. QuickBooks fills out the check with the proper interest and principal disbursement.

Return to the Loan Manager and click Set Up Payment each time you are required to make a payment on the loan.


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