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Loan payment

LisaSLisaS Member Posts: 2

Hello,
I'm just getting started with Wave and trying to understand how to record a loan and the payments.
I bought a piece of equipment and got a loan with installments.
How do I record the original purchase, the installment payments and what goes towards principal, what goes towards interest?
Thanks in advance!

in Accounting Technical Support

Comments

  • Michelle_AMichelle_A Member Posts: 45 admin

    Thanks for reaching out, @LisaS! So, what you could do is initially add a Loan Account to your Chart of Accounts under the 'Accounting' tab. From there, you can create a Journal Transaction that debits the Expense Account used, and credits the Liability. When you begin to make loan re-payments, you can create a journal transaction that debits the liability and credits the expense account used.

    We have a handy help centre article here that should shed a little more light too- I hope this helps!
    https://support.waveapps.com/hc/en-us/articles/360000041883

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