Recording Loan Payments

If you receive a monthly statement from your lender that breaks down interest and principal payments, you can skip using the Loan Manager and just enter the principal and interest information when you write your check. When you make payments on your loan, write a check to the lender, noting both parts of the payment. See the accompanying text for information on calculating interest.

Click the Write Checks icon in the Banking section on the Home page.

TIMESAVER

You can quickly open the Write Checks window by pressing Ctrl+W.

Verify the account from which the payment will be drawn.

Enter the payee.

Enter the date of the payment.

Enter the amount of the payment.

Enter the loan liability account.

Enter the amount of the payment that will reduce the loan balance.

Enter the expense account where you record interest paid by your company.

Verify the amount that QuickBooks calculated for interest (the difference between the check total and the amount in step 7).

Select whether this is to be an online payment or a check is to be printed.

Save the check.