payment to lending loan asset

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Pack6614
Pack6614 Member ✭✭
Quicken Home Business & Rental Property.

Seeking advice with how to proceed recording payment to a loan.

I have successfully set up an "Other Asset", converted to a "lending loan" with a scheduled payment that matches the amortized schedule payment issued by the title company. My question is how to insert the payment received from the purchaser into the loan account. Or does Quicken not allow this to happen and keep the two actions separate? I sold a property; I receive payment directly to a checking account for an LLC. Can I change the category for the direct payment to attach to the loan asset account in Quicken?

Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited July 2022
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    When you went through the process to set up the lending loan Quicken should have generated a recurring Reminder for it which will show up on the Bills & Income tab.  Locate that Reminder:
    • Check to confirm the settings, including the checking account the payment is to be deposited to.
    • Under "Option Settings" you can edit it to either enter the Reminder automatically or to remind you to manually enter it X-number of days prior to the due date.
    Then each month (or payment period), the Reminder is to be entered prior to the due date.  You can determine how many days prior to the due date you want it to be entered.
    Once entered, the planned deposit will show up in the checking account and in the lending loan account.
    • The Reminder transaction in the checking account will be a split transaction with the categories split for both the Principal and Interest amounts.
    • The Reminder transaction will be linked to the lender loan and will also show up in the lending loan account, also split to show the Principal and Interest amounts.  The amortization schedule (Principal vs Interest) will be automatically adjusted each month when the Reminder gets entered.
    • When the bank downloads the deposit to the checking account, Quicken should match it to the Reminder transaction that was entered earlier, after which the transaction can be Reconciled.
    Let me know if you have any questions.

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
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    "My question is how to insert the payment received from the purchaser into the loan account. Or does Quicken not allow this to happen and keep the two actions separate? "
    Assuming that the Loan asset isn't a "downloading" loan (something that I'm not even sure is possible) then the loan balance is affected by deposits in your checking Account, specifically the "principal" element of the deposit, not the interest element.  That is, you enter your deposit into the checking Account and then split the deposit into a "transfer" to the Loan asset (reducing the loan principal) with the remainder of the deposit entered into an interest income Category (increasing that Category).
    It sounds like you used Quicken's loan "wizard" to establish the loan.  During the setup it creates an amortization table and asks you what bank Account will receive the payments.  In this section of the setup you can tell Quicken to make the payment entry "X" number of days before the payment is due and if you do that, the entry will be made with the proper split between principal and interest as of the payment date.  When the payment actually hits the bank it will find that entry and report a "Match", which you accept.
  • Pack6614
    Pack6614 Member ✭✭
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    It is the first of the month and everything works except for marching the transaction with the scheduled split transaction. I will also mention that BOFA is not consistent with titling/naming the transfer of funds entry.
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    Pack6614 said:
    It is the first of the month and everything works except for marching the transaction with the scheduled split transaction. I will also mention that BOFA is not consistent with titling/naming the transfer of funds entry.
    You might want to check your Preferences to make sure that they are set properly for matching.  I recommend the "Confirm..." setting instead of the "Automatically..." setting.:
    If your Preference is already set for this, would you provide more information regarding what the matching issue is about?

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Pack6614
    Pack6614 Member ✭✭
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    Hi, Thank you for the quick response. No this did not solve the issue. The amount is the same. I've tried changing the date to fall before and after the date of the payment entry. I've also renamed the deposit to be matched the same as the Loan Payment. Quicken will not collect any entry that matches the total of the loan payment entry. I also went and backed up the file, restarted the PC and Quicken to see if that would resolve the issue and help Quicken recognize the deposit. No success.
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    Pack6614 said:
    Hi, Thank you for the quick response. No this did not solve the issue. The amount is the same. I've tried changing the date to fall before and after the date of the payment entry. I've also renamed the deposit to be matched the same as the Loan Payment. Quicken will not collect any entry that matches the total of the loan payment entry. I also went and backed up the file, restarted the PC and Quicken to see if that would resolve the issue and help Quicken recognize the deposit. No success.
    Which version of Quicken are you running?  It seems like there was a matching transactions issue with R42.8 identified by quite a few people earlier this month (https://community.quicken.com/discussion/7915941/r42-8-matching-downloads-issue).
    R42.19 says it includes a fix for "Issues matching downloaded transactions with manual transactions."
    If you have not already updated your Quicken to R42.19 you might want to consider doing that.  I suggest doing the update by downloading the Mondo Patch instead of updating from within Quicken.  Updates with Mondo Patch downloads seem to install with fewer issues being encountered.  You can download the Mondo Patch from https://www.quicken.com/support/update-and-patch-20182019-release-quicken-windows-subscription-product.

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Pack6614
    Pack6614 Member ✭✭
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    I have updated to version R42. 19 without success. On another note, I know the matching feature works in other accounts. I won’t go into to much detail but quicken will recognize transfers between accounts including the account I am using for the lender payment. Example I have an auto payment to a credit card from a bank account. When I change the category to a transfer to the CC account it will ask to confirm to match to the entry in the CC account. What other suggestions to alter the payment from the lendee could be made to the entry for Quicken to match the entry for the lend loan asset.
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    First, Quicken has released a hot patch to fix a couple of issues with R42.19.  If you have not already done so, you might want update to it (R42.21) by downloading and installing the Mondo Patch from https://www.quicken.com/support/update-and-patch-20182019-release-quicken-windows-subscription-product.
    Pack6614 said:
    Can I change the category for the direct payment to attach to the loan asset account in Quicken?
    Can you take a snapshot of what the Reminder or transaction category or split category looks like?  Black out any confidential information you don't what shared, then save the file and click and drag it to your reply.  A picture can be worth a thousand words.
    Also, what is the name of the lending loan account?

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Pack6614
    Pack6614 Member ✭✭
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    I've attached three screen shots, one for the loan lease account, the auto entry from the account, and the dialog for matching the transaction. The dialog box did not recognize the transaction. I've tried changing the date before and after the auto entry from the loan asset account. You'll see the entry for the deposit just above the transaction as "Online transfer Conf# I5".
  • Pack6614
    Pack6614 Member ✭✭
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    Another comment, I changed the name of the transfer in to match the loan asset account entry and changed the date to the end of August. Quicken asked/matched this change to the entry for September. However, I cannot get Quicken to recognize the incoming transfer for August.
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