how to track loan payment received to show as income

JJClarke
JJClarke Quicken Windows Subscription Member ✭✭
edited December 12 in Reports (Windows)

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

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Comments

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭

    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
    JJClarke Quicken Windows Subscription Member ✭✭

    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
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    @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.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    https://community.quicken.com/discussion/comment/20527334#Comment_20527334

    You customize your Income & Expense report by clicking on the gear wheel in the upper right hand corner.

    Click on the Advanced tab and set the "Transfers" section to "Exclude self-Transfers."

    Click on the Accounts tab and make sure that the balance sheet Account where you're keeping track of the principal portion of the loan payments is not included (i.e., no check mark in the check box) to "feed information to the report.

    Click on the Category tab and scroll down to the loan Account, then put a check mark in the check box, making that load Account behave like a "Category" when you run the report.

    It's been a while since I've set up some of my own reports in the fashion and either Quicken changed something along the way or I'm remembering something wrong, so disregard that last statement on "double counting."

    You should end up with a report that shows whatever Category you're using to record the interest on the loan - actual "income" as accountants use that term - and separately the Income section should have a line for the principal portion of the payment.

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