How to apply a payment to a loan

LaurieS

I created a new personal loan under liabilities with the opening balance. It's a private loan so there will be no linking to any institution. I will be paying monthly out of my checking account.

The first check cleared the checking account which I want it to do so it reduces the available balance. How do I mark it so that it shows up in the loan account to show the decreased balance?

I keep looking at the transaction details for the check entry in the checking account but I don't see any way to do this. There is a category called Loan Payment, but it doesn't actually link to the loan.

DannyB

@LaurieS

The functionality in Quicken Simplifi is the same as in Quicken Classic.

1. The following steps should take care of this item 1.
   1. Go to the transaction in the checking account.
   2. Click in the "Category" field
   3. Scroll to 'Transfer"
   4. Look for and select the loan account in the list.
   5. If there isn't already a transaction in the loan account for this payment, you will see a prompt telling you no corresponding transaction exists and one will be created.
2. The "Select account" field is for the account you are transferring OUT OF (checking account?). The "Category" field is where you select the loan account you are transferring into (loan account).

Here is an example of selecting your loan account from the payment transaction entry in your checking account.

You can do the same thing by clicking on the 3 dot ellipsis at the right side of the transaction entry, selecting "View Transaction" or by simply clicking on the transaction entry to open the Transaction detail window. Here also you can edit and make the changes described above.

DannyB

@LaurieS

Rather than a recurring Bill, I think you will want to make this a recurring Transfer.

When setting this up, in the Category field, scroll down to Transfer and a list of all your accounts will appear and you should be able to select the manual loan account you set up. Make that account your category and that should take care of it.

By default, Quicken Simplifi will exclude both sides of the transfer. If you want the transfer to show up in your Spending Plan, I think you will want to exclude ONLY the loan (transfer IN) side of the transfer.

LaurieS

Thanks @DannyB Two follow-ups…

1. The first entry is a larger one-time payment - it's showing in the checking account transactions - is there a way to get that single transaction to show that it is applied to the loan?
2. For recurring one that you mentioned, I see under the Select Account field I can pick the loan I created. But how does it know it's coming from the checking account? I don't see any other field that says which bank account to pull it from.

Or are you saying it doesn't? Are they two separate entries - the money taken out of checking and then the recurring entry in the loan account? That seems cumbersome.

In the old Quicken, I only had to have one entry in the checking register and when I picked the loan account, it just automatically showed up under both.

Thanks for your help.