Financing A Capital Expenditure (Bookkeeping Question)

[Justin Gomberg]

Hello everyone, 

What is the proper way to log this transaction? I am using TenantCloud to log income and expenses for my properties. TenantCloud does not link directly to my bank account like QuickBooks.  

I had excavation/sewer pipe replacement done. Instead of paying $7,200 upfront, I chose to finance it interest-free for 18 months; I plan to pay it off before the end of 2021 (8 months). 

Do I log each monthly payment as an expense individually or log it as one expense for $7,200? 

Thank you all in advance!