how to track loan payment received to show as income

JJClarke

Hello,

Does anyone know how I can show loan payments that I receive monthly so it shows on my income/expense report?

I currently have it set up as an Asset but the income/expense report will not show it as income.

thanks

Tom Young

Set the "Transfers" under the "Advanced" tab to "Exclude self-Transfers."

Under the Accounts tab make sure that loan Account is not checked.

Under the Categories tab fill in the check box so that the loan Account will appear as a "Category" for the report.

Payments that are made into your checking Account from the Loan Account will appear under the Income section as "From (Name of Loan Account)". You'll want to exclude the interest from the loan - which presumably is going into some interest income Category - from the report, or you'll be double-counting.

JJClarke

thanks for the reply but I don't quite follow what you are advising to do.

Could you lay it out in a bit more detail, please. Which account(s) are you referring to.

thanks,

NotACPA

@JJClarke, First off, look in Q Help for "lender loan" … which will tell you how to convert that asset into a loan which you made.

Next, only the interest portion of the monthly payment is Income, the balance (the principal portion) is a reduction in the asset value … assuming that this isn't an "interest only" loan.

What you might want to take a look at, also, is a Cash Flow report … which will show both the interest and principal components of that monthly payment.