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How to get Loan payments to show as an Expense on Reports by Category

When you set up a loan in Quicken the payment comes out of your bank account and then shows as a transfer to the loan. That transfer consists of a split transaction one with principal amount and one with interest amount. The problem is the payment does not show up as a categorized expense on Spending Reports by Category. If the loan was to buy something like a new computer you never see an expense to the Computer expense category.

To make it work. Create an asset account for example New Computer with a value equal to what your total payments will be. While setting it up link it to the loan.

Now when the payment for the Computer goes through with the 2 split category items of interest and principal add 2 more split lines. One would be for the expense category Computer with the amount of the the total principal and interest and the other would be for the asset account New Computer with the amount being the total principal and interest but a negative.

Now
1. The loan amount will work perfectly,
2. Your New Computer asset will decrease in value each month by the total expense amount,
that now shows in Your reports of Expenses.
3. The Computer will show as an Expense on all reports showing expenses.

Comments

  • volvogirlvolvogirl SuperUser ✭✭✭✭
    Where did you enter the loan originally when you set it up?  That was the expense to the computer category.  For the full amount of the loan at the beginning.  And that's when you enter the whole amount on your tax return.
  • volvogirlvolvogirl SuperUser ✭✭✭✭
    Your thought process is wrong.  
    1.  You Expense the whole loan amount to the computer category when you get the loan.
    2.  Then each payment is split to interest and principal [Loan].

    Thats it.  Very simple and straight forward.  You are not paying for the computer each month.  You are paying the loan.
  • chrisboat1chrisboat1 Member ✭✭
    I am not concerned with the thought process because I prefer to see the expense done as I actually spend it. But how do would I go about expensing the loan to Computer when I get it.
  • chrisboat1chrisboat1 Member ✭✭
    I entered the loan in add account in the loans and debt selection.
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    Look at a "Cash Flow" type report.  That will show the total in and out for the period and accounts selected.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jim_HarmanJim_Harman SuperUser ✭✭✭✭✭
    Do you want to include the full loan payment in what the computer "costs" or just the principal portion?
    -- Jim QWin Premier subscription
  • chrisboat1chrisboat1 Member ✭✭
    i simply am very happy that my reports now show the cost to buy the computer on my expenses report. My solution works for me and i have been unable to come up with any other solution.
    I am very happy with the results. I was just replying to volvogirl who said i had it all wrong. I dont think what was suggested by volvogirl can be done but i am more than happy to be proved wrong.
  • chrisboat1chrisboat1 Member ✭✭
    since it is an interest free loan I had not given it any thought. but if there was i likely would create 2 expense categories computer and loan interest so the loan interest would stand out.
  • chrisboat1chrisboat1 Member ✭✭
    @THEmikehd this might be of interest to you
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