How to set a family loan where I am the lender

dwelch115

Looking through the archive I saw instructions that I believe apply to Quicken for Windows to set up a family loan, but no similar version for Mac.  I know the loan is an asset, but I cannot see how to get Quicken to recognize that the asset is loan for which I am going to receive a stream of periodic payments.

jacobs

1. Create a new Asset account; call it "Loan to Bob" or whatever you want.
2. If you are receiving interest on the loan, create a Category called "Interest Earned" or whatever you want; make sure you click the button to define it as an Income category.
   
3. In your checking account (or whatever account you took the money out of), record a payment to whoever you loaned money to. This transaction has no Category, but is a Transfer to your asset loan account.
4. When you receive payments on the loan, you can enter them in your checking account as deposits, again, as a Transfer to your asset loan account.

Your Asset loan account always reflects the balance you are still owed, and the register contains the history of the loan origination and all transactions made.

If you are receiving interest on the loan, when you record each deposit in your checking account, instead of just being a transfer to the Asset account, make the transaction a split: one split line is the amount to Transfer to the Asset account for principal repayment, and the other split line is amount of interest income, for which you will choose the Interest Earned Category you created. 

Clinton

You can't set it up as a Loan on your end because that would be a liability rather than an asset.  You could create a manual Savings or Asset account, then set up a recurring scheduled deposit that represents loan payments back to you.  You can specify an end date with the reoccurring event, which represents when the loan would be fully repaid.

jacobs

1. Create a new Asset account; call it "Loan to Bob" or whatever you want.
2. If you are receiving interest on the loan, create a Category called "Interest Earned" or whatever you want; make sure you click the button to define it as an Income category.
   
3. In your checking account (or whatever account you took the money out of), record a payment to whoever you loaned money to. This transaction has no Category, but is a Transfer to your asset loan account.
4. When you receive payments on the loan, you can enter them in your checking account as deposits, again, as a Transfer to your asset loan account.

Your Asset loan account always reflects the balance you are still owed, and the register contains the history of the loan origination and all transactions made.

If you are receiving interest on the loan, when you record each deposit in your checking account, instead of just being a transfer to the Asset account, make the transaction a split: one split line is the amount to Transfer to the Asset account for principal repayment, and the other split line is amount of interest income, for which you will choose the Interest Earned Category you created.