Q:
Subject: Accounts Receivable
I have searched high and low in QBs on establishing Accounts Receivable with Amortized Loans. I have printed Amortization Schedules and could record via monthly splits but surely QBs has such an animal and can be “memorized”. Surely, Uncle Sam will want his take based on Interest Income.
Thanks
A:
Actually, QB does not have a function that will automatically do the amortization between principal and interest for loans receivable. They do have that feature, called the Loan Manager, for loans payable. However, this is another of the many features in QB that I don't like or use.
It is much easier to just split the deposit entry into two lines yourself; one for the principal portion and one for the interest portion. Use an estimated allocation if you are not positive what it is at the time of the payment and then go back later and correct it when you have coordinated your figures with the borrower's.
For various reasons, please do not set up any loans you make as Accounts Receivable for the type of account in QB. That type of account make things very messy. I already have an Other Assets account set up for Loans Receivables, with sub-accounts for each loan. Set up a new sub-account as the need arises.Good luck. I hope this helps.
Kerry
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