Record a loan escrow expense
Record lender-paid taxes or insurance after checking the escrow statement.
On this page
Have the lender statement showing the bill, payment date, amount and property. Check whether the expense is already recorded.
Step 1: Check the mortgage payment
Separate the amount added to lender escrow from a bill later paid out of escrow. Funding escrow does not by itself record the annual tax or insurance expense.
Step 2: Start the disbursement entry
Open Accounting > Revenue. Expand More accounting tools and choose Opening balances & journals. Choose Expense paid from mortgage escrow in Entry type. Set Entry date, Book, Property, Unit if needed, and Description.
Step 3: Review the balanced lines
Record property tax and insurance bills separately, using the actual dates and amounts from the lender statement. In each entry, use the matching expense and that loan's mortgage-escrow Chart account lines, with the correct Side and Amount. Confirm equal debits and credits, then select Submit for review.
Step 4: Approve and compare
Inspect Saved journal review before Approve & post journal. Approval posts to the journal. Read the report-coverage note before checking a report; if it says none, these adjustments are not included in reports using the transaction ledger.
When the expense belongs to a saved loan
Open Accounting > Accounts > Loans and choose View loan for the correct property. Select Record escrow activity, then Expense paid from escrow in Activity. Enter Date, Amount, Expense category and Description from the lender statement. Record tax and insurance bills as separate expenses with the matching category. Review the details, then choose Save record. This dedicated path records the loan's escrow activity. A general journal does not update that loan history. Choose the appropriate path once.
Check report coverage
Read the journal dialog’s report-coverage note. If it says none, reports using the transaction ledger do not include these adjustments. Do not assume the journal changes Net Income, Schedule E or the Balance Sheet.
Check the result
- The selected workflow records the actual lender disbursement once, separately from escrow funding and principal.
FAQs
Should I expense the whole mortgage payment?
No. Review its principal, interest and escrow parts. This guide concerns a bill the lender has actually paid from escrow.
Is this for tenant security deposits?
No. Use the dedicated lease and deposit workflows for tenant funds.
Does saving send money to the insurer or tax authority?
No. These records describe activity already shown on the lender statement.
Why is there no new bank-feed transaction for the bill?
The lender paid it from escrow. Your operating bank feed may show only the mortgage payment. Compare the lender statement with existing records before adding the actual tax or insurance expense.