---
title: "Payment of a Loan through a Vendor"
slug: "payment-of-a-loan-through-a-vendor"
updated: 2023-12-20T17:59:14Z
published: 2023-12-20T17:59:14Z
canonical: "www.procaresupport.com/payment-of-a-loan-through-a-vendor"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://www.procaresupport.com/llms.txt
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# Payment of a Loan through a Vendor

How to enter a loan payment, such as a mortgage or auto loan. Loan payments affect two different GL numbers; interest is expensed, and the loan liability is paid down.

## Before You Begin

- If recording payments to vendors is new to you, see: [Issue a Check to a Vendor](/procare-desktop/docs/issue-a-check-to-a-vendor).
- The original entry for the loan is discussed in [Journal Entry for a Loan](/procare-desktop/docs/journal-entry-for-a-loan).

## Payment for a Loan

Below is a sample entry for the payment of a loan, such as a car loan, that covers both interest and principle. The liability (payment of principal) is entered as a negative amount, because that portion of the payment is reducing the balance owed on the loan.

In this example, the principle (-487.61) and interest (47.83) amounts are known for a total payment of 535.44. If you do not know the interest/principal breakdown, you can post an estimated amount and make a correcting journal entry later on. Ask your accountant for details.

![image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/Payment+of+a+Loan+through+a+Vendor+1202_1.png)