QB Issue Resolution:
Typically a construction loan is a basically a line of credit, you use it and the amount you use becomes payable at that time.
assuming that to be the case, you want to accumulate all costs to build the building, create a current asset account called building-WIP (work in progress)
As you pay for things during the construction, use that account as the expense for the purchase, fees, surveys, materials, etc etc and of course the offset, payment comes from the note payable account
ie in an expense transaction
note payable, -$$$$ (negative amount)
when you are done and the building is ready to be put in use, create a fixed asset account named for the building and do a journal entry
debit the fixed asset account for the total amount in the WIP account, and credit the WIP account for the same amount
I set my fixed asset account structure up like this, but it is up to you
Building, 7734 downhill dr
>> accumulated depreciation – 7734
Resolution for Issue 'We have a loan for a new building. The loan is entered note payable as long term liabilities. Am I just creating a new construction account and sub accounts as expenses?' available: Yes (Solved).
Source: Intuit Community forum.
We have a loan for a new building. The loan is entered note payable as long term liabilities. Am I just creating a new construction account and sub accounts as expenses?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for fees
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