Managing Loan Information (QuickBooks Loan Manager)

The loan manager tracks loans set up in QuickBooks based on the information in the Long-term Liability and Other Current Liability accounts.  Using the loan manager, you can track both principal and interest, without having to refer to amortization tables to calculate the amounts and then enter those amounts manually using journal entries.

1. From the banking menu choose Loan Manager.
2. Click “Add a Loan” and use the payment window to set up each regular loan payment, as well as any extra payments for loans tracked in the loan manager. When you make changes to a loan, the Loan Manager recalculates the payment information and the payment schedule.

The loan manager both sets up amortization schedules based on the following input:

• Loan account selected from chart of accounts
• Loan amount
• Origination date
• Term
• Date of first payment
• Payment amount
• Payment period
• Escrow payment amount, if any
• Escrow payment account selected from chart of accounts
• Interest rate
• Compounding period
• Payment account selected from chart of accounts
• Interest expense account selected from chart of accounts
• Fees/Charges account selected from chart of accounts

The loan manager report includes loan information, the payment schedule, and the lender contact information. It can be set to automatically alert the user when a payment is due and post each scheduled payment to accounts payable or to a check with the appropriate distributions to principal, interest, and feesIt can be set to automatically alert the user when a payment is due and post each scheduled payment to accounts payable or to a check with the appropriate distributions to principal, interest, and fees.

Below are screen shots of the setup and a posting to accounts payable:

Robert Guild is certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users.  His company Accounting Insight maintains a sixteen station QuickBooks lab, providing hands on training.  You can contact him directly at rguild@accountinginsight.biz or follow him on twitter at QBPro