Manage Suppliers and Expenses

Hello @brahman,

Let me help walk you through the steps on how to record a transaction for the tractor you purchased. I want to ensure that you can enter it correctly so that the posting account in your books is accurate.

To start with, we'll have to create a new asset account for the tractor and liability account for the installment. To do so:

A. Create an Asset account

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Under Account Type, select Other Assets.
5. On the Detail Type menu, select Other Long Term Assets.
6. Enter any name of your new account. Ex. Tractor.
7. Select Track depreciation of this asset.
8. Leave a blank value in the Original cost field of your asset.
9. Click Save.

B. Create a Liability account

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Under Account Type, select Long-term Liabilities.
5. On the Detail Type menu, select Other Long Term Liabilities.
6. Enter any name of your new account. Ex. Tractor Loan.
7. Click Save.

Once done, here's how you can create the payment for every installment:

1. Go to the + New button.
2. Under OTHER, select Journal Entry.
3. Below the Account column in the first line, select your new asset account.
4. Enter the installment amount under the Debits column.
5. On the second line under the Account column, select your new liability account.
6. Enter the same installment amount under the Credits column.
7. Click Save and close.

Lastly, I've got you this helpful article for ideas about how you can get back to a transaction in your account's register and use its related functions: Find, review, and edit transactions in account registers.

If there's anything else that I can help you with, please let me know in the comments. I'll be here to lend a hand.