How to enter assets with accompanying loans

If for example you have company vehicle that has a loan against it, you will need to easily record the loans payments every month.

You will need to create 2 general ledger accounts, one under the asset heading for the vehicle, and one under liability for the loan.

1. In either the Accounts Payable or Accounts Receivable tabs, click Account Maintenance.
   
   
   
2. Under the Asset tab, click Add.
   
   
   
3. Enter an Account Code, Account Name, and Description.
4. Select Asset as the Classification.
5. Tick the boxes for Reference Required and GST Allowed.
6. Click OK.
   
   
   
7. Under the Liability tab, click Add and create another account. It should look similar to the below screenshot.
   
   

The next step is to enter the invoice for the purchase of the asset, and then transfer that amount to the loan liability account.

1. In the Accounts Payable tab, click Creditor Invoices.
   
   
   
2. Click New.
   
   
   
3. Enter a Supplier and the Date of Purchase.
4. Enter the Invoice Number, Amount, and Narration.
5. Select your previously created Asset Account in the GL Acct field.
6. Enter a Reference and a Type of OT.
7. Enter the Purchase Amount.
8. Click Post.
   
   
   
9. In the Accounts Payable tab, click Make Payments, then Bulk Payments & Transfers.
   
   
   
10. Select the Creditors account.
11. Select the Supplier, then click Transfer.
    
    
    
12. Select the Loan account in the To Account field.
13. Enter a Reference and Narration.
14. Select No Consolidation (Same Payee).
15. Select the Purchase Line Item, then click Post.
    
    

The final step is to create a recurring journal for the loan payments, and then post that journal when loan repayments are made.

1. In either the Accounts Payable or Accounts Receivable tabs, click Journal Entry.
   
   
   
2. Click Recurring Journals.
   
   
   
3. Click Add.
   
   
   
4. Enter a Journal Name.
5. Select your previously created Liability account, your Interest Expense account (If you are recording interest paid), and the Bank account that the payment is coming out of.
6. Enter the Finance Company in the Client field.
7. Enter a Reference and a Type of OT.
8. Record the payment amounts, Debiting the Liability and Expense accounts, and Crediting the Bank account.
9. Click Save.
   
   
   
10. When the payment is due, click New Journal, then select your Saved Journal. Ensure you update the Date to match the payment date.