Loans and Long Term Liabilities
1) If you do not already have a GL account setup go to Ledger~>Chart of Accounts~>New GL Account.
(Example: "ABC Bank XXX Term Loan")
2) Then, go to Payables~>Vendors~>New Vendor. Input the company name you received your loan or long term liability. (Example: ABC Bank)
3) Now go to Payables~>Vendor Bills~>New Bill
Insert the vendor name and TOTAL loan amount. Also enter the “Bill into how many equal parts”.
(Example: Total = $10,000, Bill into 10 parts. Monthly payments will be $1,000)
4) Go to Payables~>Checks~>Write Checks~>Write Checks for Pre-Approved.
Apply the principal to one ledger account and the interest to another ledger account.
5) When you are ready to make a payment go to Payables~>Checks~>Write Checks~>Write Checks for Pre-Approved.
(Example: "ABC Bank XXX Term Loan")
2) Then, go to Payables~>Vendors~>New Vendor. Input the company name you received your loan or long term liability. (Example: ABC Bank)
3) Now go to Payables~>Vendor Bills~>New Bill
Insert the vendor name and TOTAL loan amount. Also enter the “Bill into how many equal parts”.
(Example: Total = $10,000, Bill into 10 parts. Monthly payments will be $1,000)
4) Go to Payables~>Checks~>Write Checks~>Write Checks for Pre-Approved.
Apply the principal to one ledger account and the interest to another ledger account.
5) When you are ready to make a payment go to Payables~>Checks~>Write Checks~>Write Checks for Pre-Approved.