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Hi, I purchased a group of Cows and calves and the seller financed the loan to me to purchase, to which I make monthly payments. How do I enter this into long term debt correctly, so that I show the loan payments with interest and add the cattle to my inventory.
Hi Nick! You'll want to enter a withdrawal transaction, leaving the amount at the top as $0.00 as the purchase was financed. Enter your Expense, line type EX, to purchase the cows and calves which should also update your inventory automatically as long as the expense account is linked to the appropriate inventory account in setup. (Setup > Chart of Accounts > Expense tab > Edit the expense account you want to use and verify which inventory account it's linked to)
Then you'll want to offset that using an L+ line and if necessary add a new loan account and balance the transaction against that. Then when you're making payments it will just be a Withdrawal for whatever the payment amount is offset by an EX line for the interest and an L- line for the amount reducing the loan balance.