inter-company loan and bank transactions

Hello there, Capstone20. I'm here to ensure you can match your bank transactions as parts of loans from your Companies A and B. 

When recording company loans into QuickBooks, you'll need to choose a liability account to associate with it. If you've already got one set up, you're good to go and can move ahead with the next step.

If you don't have a liability account for your loan, here's how you can create:

1. Hover over to the Transactions menu on the left navigation panel, then select Chart of accounts.
2. Click +New, then enter an Account Name.
3. Select Other Current Liabilities or Long Term Liabilities from the Account Type dropdown list, depending on the type of loan and its repayment time frame.
4. Select Other Current Liabilities or Long Term Liabilities in the Detail Type dropdown list.
5. Leave the Unpaid Balance field blank, then hit Save and close.

Next, let's go ahead and make a journal entry to record the loan. It will help us keep track of what the company owes you, but it will also serve as a record of expenses for year-end reporting and tax purposes.

1. Click +New on the left navigation panel, then select Journal Entry.
2. Enter the loan amount and log the proper amounts to the appropriate expense accounts.
3. In journal entries, the total of the Debit and Credit columns must be equal.
4. Hit Save and close.

Then, we can record all payments made for the loan.

1. Click +New, then select Check.
2. Press the Account dropdown and select the liability account you created for this loan.
3. Enter the Amount of the payment, then click Save and close.

Since this involves two companies, I recommend consulting your accountant for further advice on recording and handling inter-company loans, including which account to use.  This way, we can ensure the accuracy of your books. You can check out our Find an Accountant tool if you don't have one. 

This process will ensure you can match your bank transactions accurately in both companies. 

In addition, here are some articles you can check out as a guide to handling your bank transactions and loan repayments in QuickBooks:

• Categorize online bank transactions.
• Bank errors and missing transactions.
• Record a loan repayment.

You can post a reply to this thread if you need further assistance with managing your inter-company loans and bank transactions. You can count on me to have your back, no matter what.

In company A, set up an asset account called something like "Due from company B".  This will be your debit when you loan out funds to company B. 

In company B, set up a liability account called something like "Due to company A".  This will be your credit when you receive funds in from company A.

The balance should always be the same in both accounts.

When you pay back the loans, you will use the same accounts. Just do the transactions in reverse.

Hi,

You can handle this using “Due to/from” accounts:

1. In Company A, create an account called something like “Loan to Company B” (Other Current Asset).

2. In Company B, create “Loan from Company A” (Other Current Liability).

3. Record the outgoing bank transactions from A as increases to the loan account.

4. When B repays, post the payment as a decrease to that same account.

This keeps both books aligned and audit-ready.

If you want to automate interest, terms, and tracking, you can also look into intercompany loan management software that works alongside your accounting system.
https://dnetsoft.com/treasury-management-software-dynamics