How do I handle a debt being repaid to me?

Question

Being new to Quicken (and having used an envelope budgeting system previously on a different platform), can you give me any guidance on how I should now treat a debt that is being repaid to me over a period of months ...? There is no formal repayment agreement - so I don't know how much I'm going to receive or when frankly ... but of $7,000 owed I've so far received $1,000 - so how do I annotate that initial repayment, and how do I then move forward - do I set it up as a Savings Goal - or do I create a Loan Repayment budget - or something completely different? Grateful for any advice offered.

NotACPA · Accepted Answer

It all depends upon how you recorded (or IF you recorded) the loan in Q, AND whether you're charging interest on it.If not setup in Q, it would be an Asset type account, since it's something that you own or is owed to you. 
The initial transaction would be a transfer from your checking account (or where ever) to the Loan account.
The principal portion of any payments would show as transfers FROM the Loan account back into your checking account.