In this article you will learn how to track customer loans. To know more call on Quickbooks Support Number.<\/p>\n
The first step in the process of recording a loan for a customer is to make out the purpose for which the loan is taken:<\/p>\n
Option 1: If the loan is taken to close all open invoices<\/strong><\/p>\n Step 1:<\/strong> To track the loan and its repayment create an account<\/p>\n \u2022 Click on the Gear icon present at the top.<\/p>\n \u2022 Select Chart of Accounts.<\/p>\n \u2022 Select New from the upper left.<\/p>\n \u2022 Set the Account Type.<\/p>\n Note:<\/strong><\/p>\n o<\/strong> If the loan is to be repaid within the current fiscal year create other current asset.<\/p>\n o<\/strong> Create an Other Asset If the loan will be repaid after the current fiscal year create an Other Asset.<\/p>\n \u2022 In the Detail Type drop-down choose loans to Others.<\/p>\n \u2022 Add a name which can be recognized for eg: “Customer Loan-Lastname”.<\/p>\n \u2022 Without entering an opening balance click on save and close.<\/p>\n Step 2: Create a journal entry<\/strong><\/p>\n The opening balance of the loan will be established by the journal entry and create a credit in Accounts Receivable for that customer. To open invoices you can then apply the credit.<\/p>\n \u2022 Click on the Plus icon (+)<\/p>\n \u2022 Select Journal Entry.<\/p>\n \u2022 Add the customer loan account on the first line in the Account field, and then the loan amount in the debit field.<\/p>\n \u2022 Add the Accounts Receivable account on the second line in the Account field, and then the customer’s name in the Name field.<\/p>\n \u2022 Click on Save and close.<\/p>\n Option 2:<\/strong> Issue a multi-purpose loan to your customer<\/p>\n Step 1:<\/strong> To track the loan and its repayment create an account<\/p>\n \u2022 Click on the Gear icon present at the top.<\/p>\n \u2022 Select Chart of Accounts.<\/p>\n \u2022 Select New from the upper left.<\/p>\n \u2022 Set the Account Type.<\/p>\n Step 2:<\/strong> Issue a check for the loan<\/p>\n \u2022 Click on the Plus icon (+) present at the top.<\/p>\n \u2022 Select Checks.<\/p>\n \u2022 For bank account, select the account which was used to fund the loan (Example: Checking or Money Market) for Bank Account.<\/p>\n \u2022 Select the account which was used to track the loan as the off-setting account.<\/p>\n \u2022 Enter the amount.<\/p>\n \u2022 Click on Save and close.<\/p>\n