How to Record a Loan Payment in Quicken 2010 - dummies

How to Record a Loan Payment in Quicken 2010

By Stephen L. Nelson

After you set up a liability account in Quicken 2010, you’re ready to make a payment. After you set up the loan and the loan payment, you’re ready to record the payment in (drumroll, please) the register.

1Display the View Loans window by choosing Net Worth→Loans.

If the Net Worth tab doesn’t appear, choose View→Tabs to Show→Net Worth. And if the Net Worth command happens to be disabled, don’t freak out. Just choose Tools→Loan Details.

2Click the Choose Loan (x) button in the top of the dialog box and select the loan from the drop-down list; then click the Make Payment button.

Quicken displays a message box that asks whether the payment you’re making is a regular payment (one the lender expects) or an extra payment (perhaps to amortize the loan more quickly). If you haven’t set up your loan yet, Quicken will walk you through a series of steps to do so.

3Select the payment type and click the Payment Type button, such as Regular or Extra.

Quicken displays either the Make Regular Payment or the Make Extra Payment dialog box (they look almost exactly the same).

4Select an account from the Account to Use drop-down list.

Specify the account from which you want to withdraw the money for the payment.

5In the Type of Transaction drop-down list, select how you plan to make this payment.

Payment means that you handwrite checks; Print Check means that you print checks by using Quicken; and Online Pmt means that you use Quicken Online Banking to make electronic payments.

6Enter the name of the lender in the Payee text box.

If you need to enter the Payee’s address, click the Address button, fill in the appropriate information, and click OK to return to the Make Payment dialog box.

7In the Date text box, enter the date of the payment.

Alternatively, you can specify the date by clicking the calendar button and selecting the day you want.

8Enter a name in the Category text box.

Or select a category from the drop-down list.

9Use the Split button to break the payment down into principal and interest amounts.

Principal reduces the balance of the loan, while interest is the cost of borrowing the money.

10Enter the loan payment you want to make in the Amount text box.

You don’t need to include a dollar sign, but you should add a decimal place to mark the cents.

11(Optional) Add some explanation in the Memo text box.

If you want to remind yourself of your payment number, for example, enter it here.

12If you're hand-writing your loan payment check, enter the check number in the Number text box, or choose Print Check to indicate that you want to print the check.

13Click OK.

Quicken enters the loan payment in the liability register and bank account register. You’re done.