How do I record automatic loan payment that is an interest only payment?
Also, do you use the Undeposited funds account when you receive a payment on an invoice? I have been doing that and when we make a deposit, I use the bank deposit tab (under the + sign at the top) and match the payments up to the deposit. Am I doing this right?
I have just started doing the accounting at a family business and I am quite new to Quickbooks online. In the past, invoice payments were put into Accounts Receivables so now there looks like there are double deposits on the books for the last several months. How do I fix this one the deposit has cleared the bank?
I hope this makes sense to you . . . . I understand if it doesn’t! 🙂
Thanks for your help!
Hi Kathy, thank you for posting your questions. First, you can record an interest only payment by categorizing it to an account called Interest expense. If you don’t have an account on the chart of accounts for interest expense, you need to add one. Below, I will post our video tutorial on the chart of accounts which includes step-by-step instructions on how to add a new account.
Second, yes you are suppose to use the undeposited funds account when you receive payment on an invoice. Yes, matching the payments to the deposit is exactly what you should be doing.
Third, you mentioned payments posting to accounts receivable. That is actually correct. When you create an invoice in QuickBooks it increases the accounts receivable (A/R) balance. When you receive payment for that invoice it is suppose to reduce the A/R balance. I’m not sure why your A/R is doubled up but there could be another reason for that.
I recommend you run the Invoices and Received payments reports to identify which invoices show double payments. Once you identify the duplicates, you need to go into each payment transaction and delete one of them. Deleting transactions can be tricky so if you’re not comfortable with this, contact the Intuit support team and have someone walk you through it. You get unlimited customer support via telephone or chat with your paid subscription.
Chart of Accounts Video Tutorial: https://fitsmallbusiness.com/set-up-chart-of-accounts-quickbooks-online/
Best of luck,