How do I Enter and Keep Track of Vendor Bill (such as insurance) that has been paid by finance in Quickbooks Online?

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When a vendor bill such as insurance has been paid by finance there are a number of things you want to track in Quickbooks Online.

The insurance companies bill and amount.

That the insurance company's bill was paid by finance.

That a liability account has been created for the financed amount.

That the loan and interest will be tracked by the liability account.

 

To create the vendor bill and finance the payment do the following:-

  1. Create the Vendor or Supplier.
  2. Add their Bill to the Vendor/Supplieraccount.
  3. Create a "New Journal Entry"
  4. 1st Line choose the loan liability account created earlier and enter the total amount of the vendor bill to be financed in the credits column. Add a description.
  5. 2nd Line choose "accounts payable" and enter the total amount of the finance in the "Debits Column". Select the  Vendor Name that the bill is from in the name box. Add a Description.

 

TO RECORD THE LOAN PAYMENT INTO QUICKBOOKS ONLINE:

When we record a payment to the finance company off the loan we also want to make sure that there is a record of the interest paid etc.

To do this we can create an expense and split the payment amount between interest expense account and loan liability account.

If we want to document the interest payments in the liability account as well then we need to create a "New Expense" and a "New Journal Entry."

Click on "New Expense".

Choose the loan liability account created earlier.

Enter the total amount of the payment to the finance company.

Click on "New Journal Entry"

On the 1st line choose "Interest Expense" as the account and enter the interest for that month in the "debit" column. If there is no account call "Interest Expense" in the chart create one.

On the 2nd Line choose the "Loan Liability Account" we created earlier and enter the interest amount in the "credit" column.

 

See Also: Recording and tracking a loan for a physical asset in Quickbooks Online.

How do I Enter and Keep Track of Vendor Bill (such as insurance) that has been paid by finance in Quickbooks Online?

When a vendor bill such as insurance has been paid by finance there are a number of things you want to track in Quickbooks Online.

The insurance companies bill and amount.

That the insurance company's bill was paid by finance.

That a liability account has been created for the financed amount.

That the loan and interest will be tracked by the liability account.

 

To create the vendor bill and finance the payment do the following:-

  1. Create the Vendor or Supplier.
  2. Add their Bill to the Vendor/Supplieraccount.
  3. Create a "New Journal Entry"
  4. 1st Line choose the loan liability account created earlier and enter the total amount of the vendor bill to be financed in the credits column. Add a description.
  5. 2nd Line choose "accounts payable" and enter the total amount of the finance in the "Debits Column". Select the  Vendor Name that the bill is from in the name box. Add a Description.

 

TO RECORD THE LOAN PAYMENT INTO QUICKBOOKS ONLINE:

When we record a payment to the finance company off the loan we also want to make sure that there is a record of the interest paid etc.

To do this we can create an expense and split the payment amount between interest expense account and loan liability account.

If we want to document the interest payments in the liability account as well then we need to create a "New Expense" and a "New Journal Entry."

Click on "New Expense".

Choose the loan liability account created earlier.

Enter the total amount of the payment to the finance company.

Click on "New Journal Entry"

On the 1st line choose "Interest Expense" as the account and enter the interest for that month in the "debit" column. If there is no account call "Interest Expense" in the chart create one.

On the 2nd Line choose the "Loan Liability Account" we created earlier and enter the interest amount in the "credit" column.

 

See Also: Recording and tracking a loan for a physical asset in Quickbooks Online.