I don't understand how the second method of recording the financed asset works. The total cost of the vehicle was $50,000, but at 8:12 the total is listed as $90,000. Is this the total of the loan or did I miss something? - Vicki w/ All Bright Blinds
I started using the quickbooks after I got a loan in 2023. The loan was taking from the dealer. I never received the money and paid them. Just making monthly payments and interest payments. That was in 2022. How can I calcify this?
You’d have to post the payments to the loan balance that you recorded. And since you have not classified interest expense on that loan since 2022. I would do a journal entry to correct the balance of the loan at the end of 2023 and record the interest expense.
Hi thanks for the video! I know somebody that is having their accountant use COGS (Costs of Goods Sold) for their Vehicle loan payments. They're either coding the interest or the principle portion to COGS. Either of which doesn't seem right as the business is a service based business and they do not sell or manufacture products, nor do they use or purchase products to conduct their services. They only provide transportation services and this was for a vehicle used for that. What do you think?
I could see that being fine if the vehicle is providing the transportation service that produces revenue. Just the interest portion though, principal payments would hit the loan on the balance sheet
if im recording for the first time a car loan that has existed for a few years Do i record it the same way with the original cost of the car???? iv been searching for two days on this How do you record an existing car loan
@The Quickbooks University Thank you so much!! I only do this once at the start of set , and then moving forward, I just do the payment and the interest entries like normal Correct..
Great video. Understood clearly. 1). Have you done a video on making car payments that separates principal and interest against long term liability in QB for those that don’t know how to do it? 2). I’m buying an SUV next month for $55K. It weighs under 6000lbs. Can you please do a video on accumulating depreciation in QB? I plan to take the bonus depreciation in 2022. Since the business vehicle will be use 100% business, I believe the maximum depreciation for the first year is $18,000 for vehicle under 6000lbs. If so, how to record $18,000 depreciation against the fixed asset? Would love to see you demonstrate in QB tutorial. Thank you
www.QBUniversity.org/Masterclass - Feel free to leave a comment or question here!
Best clearest explanation I have seen on You Tube!
Awesome thanks!
Is there an equivalent quickbooks online tutorial?
I don't understand how the second method of recording the financed asset works. The total cost of the vehicle was $50,000, but at 8:12 the total is listed as $90,000. Is this the total of the loan or did I miss something? - Vicki w/ All Bright Blinds
It’s cause he did the transaction twice for $45,000 (x2) = $90,000.
He didn’t delete the first method before showing the second method
When I make a payment toward the loan, how do I separate the principle from interest?
You “split” the payment between the 2 accounts
I started using the quickbooks after I got a loan in 2023. The loan was taking from the dealer. I never received the money and paid them. Just making monthly payments and interest payments. That was in 2022. How can I calcify this?
You’d have to post the payments to the loan balance that you recorded. And since you have not classified interest expense on that loan since 2022. I would do a journal entry to correct the balance of the loan at the end of 2023 and record the interest expense.
How can you stop a recurring monthly payments if you have written a cheque to pay off the truck loan. It is showing past 90 days but the balance is 0
I answered this in your other comment
How do you record donation the correct way if you write a cheque for charity for office asset, cash or cheque.
hi, have you done VDO on trade-in vehicles with 0 cash down? im struggling with recording it for a while now
please help
what if they write a $5K check and then another $8900.00 ck for a down payment? how do you record BOTH checks for the same day?
I would do 2 separate line items, one for each check, in the entry
How do I enter a leased vehicle?
In general you don’t. You just enter the lease payments as an expense
Can I record a extended vehicle warranty that was also purchased at the same time? How would I do it?
I would add this to the cost basis of the vehicle
@@QbuniversityOrgso adding that warranty would increase the asset and the liability by the warranty cost?
Hi thanks for the video! I know somebody that is having their accountant use COGS (Costs of Goods Sold) for their Vehicle loan payments. They're either coding the interest or the principle portion to COGS. Either of which doesn't seem right as the business is a service based business and they do not sell or manufacture products, nor do they use or purchase products to conduct their services. They only provide transportation services and this was for a vehicle used for that. What do you think?
I could see that being fine if the vehicle is providing the transportation service that produces revenue. Just the interest portion though, principal payments would hit the loan on the balance sheet
if im recording for the first time a car loan that has existed for a few years
Do i record it the same way with the original cost of the car???? iv been searching for two days on this
How do you record an existing car loan
Yes do a journal entry with a debit to the original cost, credit to the loan balance and the difference goes to Owners Equity
@The Quickbooks University Thank you so much!! I only do this once at the start of set , and then moving forward, I just do the payment and the interest entries like normal Correct..
@@reaganhernandez5861 that’s correct!
Great video. Understood clearly.
1). Have you done a video on making car payments that separates principal and interest against long term liability in QB for those that don’t know how to do it?
2). I’m buying an SUV next month for $55K. It weighs under 6000lbs. Can you please do a video on accumulating depreciation in QB? I plan to take the bonus depreciation in 2022. Since the business vehicle will be use 100% business, I believe the maximum depreciation for the first year is $18,000 for vehicle under 6000lbs. If so, how to record $18,000 depreciation against the fixed asset? Would love to see you demonstrate in QB tutorial. Thank you
I have done some videos on separating the principal and interest on loan payments as well as depreciation. I’ll search and post thise
Here’s a depreciation one th-cam.com/video/JG2LRSBgp0o/w-d-xo.html
How do you this on QBO?
Really the exact same way, the layout is just different
Great, very helpfull
Thanks!
The journal entry was so much easier
Yes it is!