Effortlessly Manage Your Loan Invoice Template for Procurement

Loan invoice template for Procurement

how to enter a bill for a loan payment in QuickBooks hey everyone this is Matt Holquist with the QuickBooks University uh if this video is helpful please give it a thumbs up please share it I sure would appreciate it and also subscribe uh that helps me grow the channel I sure appreciate it okay so have this question this week from one of our members uh because I had shown how to enter a check for a loan payment just to to give an example of what it looks like and they had a question about okay well how do I enter a bill for a loan payment and so I want to walk you through that in this video all right so if you get a bill and you are using the enter and pay bills function in QuickBooks there is a certain way that you definitely want to enter that bill okay so what we're going to do is now we'll take an example assume you get this bill it could be an email it could be in the mail whatever the case may be and you get this bill so you need to pay the bill so how do we do that all right so we're going to go to vendors and we're going to go to enter bills bring up the bill template screen here first of all we're going to enter the vendor okay so in this sample file we'll say that this is Bank of any City and we're going to put the date so what is the date of the bill it will default to today's date but you want to make sure that you put in the actual date of the bill it'll say somewhere on there the statement date the the bill date invoice date whatever it is but you want to put that in there so let's say that that is 11 30 22. and we go down in a reference number okay so what I always Advocate people is to put in an invoice number so the reference number is going to be an invoice number for any invoice that you get now typically a loan statement or a bill for a loan payment is not going to have an invoice number so what do you do in that situation well you can do a number of things I'm going to show you how I do it and how I advise my clients to do it and members but in general what you want to do is you want to make sure that you're consistent in how you do this so for every single time that you get an invoice for a bill for a loan payment make sure that you stay consistent Okay so foreign you know for one of these for a loan payment what I typically will do is put in the month okay so you could say August okay or since I used uh 11 30 you could put in November okay or you could put in November 2022 okay just something that's going to be consistent every time because the reason that you want to put in this reference number which is really the invoice number is that it helps you avoid entering duplicate bills so if you get this bill again and you stay consistent and you say hey this is November 2022 you put that in QuickBooks are going to alert you and say you already have a bill for this is this a duplicate Bill okay so it's kind of a safety feature so we'll put in November 2022 and we're going to say that this is a thousand dollars okay how about a thousand dollars and 33 cents for a loan payment due date uh of course you're gonna put the due date that's pretty self-explanatory and then you see down here in the account and of course you can put in memo and all that kind of stuff you're going to see down here under the account it's already broken out between Bank of any city which is a note payable so you can see your notes payable Bank of any City and then the second line is the interest expense okay so we have any time you have a note payable or a loan payment you want to break out the accounts this is called a split transaction in QuickBooks so if you hear that reference that's what this means it's not complicated all it means is you are splitting the bill between two accounts okay so note payable this is going to be the Principal portion so normally it's going to show you on your bill for the loan or your statement what the breakout is now sometimes it won't show the breakout for the current one but it will show for the previous month's payment which is kind of a pain in the butt but you know what you can do in that situation is estimate it for November so if you get this November Bill and it just breaks it out it doesn't break out anything for November just says you owe a thousand dollars and 33 cents for November's payment and your October payment was 1033 and here was the breakout between principal and interest what I would do is go back into that bill and just adjust the breakout to how it should be now it is kind of a pain you got to go to last month's bill but that's what we typically do now for this month's bill what I will do is either put the same as October uh the breakout between principal and interest or estimate it and then when I get next month's statement I will break it out ingly now many times also you can just go online log into your account and look at what that breakout is and record it appropriately but the important thing is you want to break this out be between principle and interest okay so I'm going to delete this line and we'll go up here and we're going to say that this is what I'm going to do delete that so it automatically fills okay so 350 33 type in interest expense 350 33. and if you have a class or you know a customer or whatever that you need to put to then you can do that as well so the important thing to remember here is you want to break it out between principal and interest and if I hit save and close and I go to I'm going to go to my balance sheet because I want to show you why this is important okay so if I pull up the balance sheet you're going to see Bank of any City no payable Bank of any city right here you want to make sure that that principal balance is correct as a liability on your balance sheet okay any questions any comments feel free to leave those below also head over to the QuickBooks University link is down in the comments it's the first pin to comment join the master class and I look forward to seeing you there