Created auto loan account now creating Asset account
Hi I created a loan account for an auto loan, attached to the service and all is good with that. Am now creating the asset account. There does not appear to be any way for them to be linked - are they supposed to be linked? If so how lol thanks.
Best Answers
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Hi @lindycorp,
It would seem to be logical that the debt (i.e. loan used to purchase something) for an asset to be "linked" to the asset. And in real life they are linked. But in accounting they appear in two separate "accounts" - the automobile is an "asset" - something that is owned. While the loan to purchase the asset is a "liability" - something that is owed to someone or some entity - like a bank.
Hope this halos. Let me know if you have any followups.
Frankx
Quicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -0 -
Ok I'm gonna take that as a "no they're not supposed to be linked in quicken" thanks! … 😎
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Answers
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Hi @lindycorp,
It would seem to be logical that the debt (i.e. loan used to purchase something) for an asset to be "linked" to the asset. And in real life they are linked. But in accounting they appear in two separate "accounts" - the automobile is an "asset" - something that is owned. While the loan to purchase the asset is a "liability" - something that is owed to someone or some entity - like a bank.
Hope this halos. Let me know if you have any followups.
Frankx
Quicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -0 -
Ok I'm gonna take that as a "no they're not supposed to be linked in quicken" thanks! … 😎
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You can link an asset account and its associated loan account. Right click on the asset account in the Account Bar and select Edit/Delete Account. In the Account Details window, select the loan account in the drop down list for Vehicle Loan Account. Click OK to save the change.
Quicken user since Q1999. Currently using QW2017.
Questions? Check out the Quicken Windows FAQ list0 -
BTW, the only impact of such linkage it to show how much equity you allegedly have in the asset.
BUT, for most assets it's inaccurate … because the value of the auto is declining and the value of real estate is (hopefully) increasing without regard to the linked loan account.
I.E. it's a SWAG at best.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0
