When entering credit card purchases and you itemize each charge in the expense section in each correct account, will the expenses be itemized on a profit and loss report?
Also, I have a Long Term Liability (Loan), when making payments to the loan why doesn't the payment show up as a expense on the P & L report?
1) If you enter your charges, using Banking>Enter Credit Card Charges. . .and, put the appropriate date and expense account on the expense tab, it will flow to your P & L
2) When you make payments to your loan, you should break out the interest and principal portions. The interest expense will show on your P & L, the reduction in principal will show on your Balance Sheet.
Does this help?
Laura D
Your loan payment does not show up because it is not an expense. More likely than not you made a purchase with the money and that purchase is your expense. If you borrowed money to but a vehicle you either took Section 179 , MACRS, or SL depreciation. The depreciation is your expense.
Marc Barnes
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To expend on CopperCanyon's answer, the Loan would have been initially setup like this:
DR Supplies(or Equipment) $1,000 CR Loan $1,000
So the expense or asset was recorded back then, and the payments to the Owner would be:
DR Loan $90 DR Interest expense $10 CR Bank account $100
