I would treat this like a loan to purchase the equipment. The initial entry would be a debit to manufacturing equipment and a credit to a loan account. Each payment is then recorded with the principal portion as a debit to loan, debit interest to expense, and credit to bank. To do this properly you would have to get a amortization table from the lender or create your own which may not be 100% accurate but close enough to have the balance in the loan account at zero when the last payment is made.

The payments were set up to automatically be withdrawn from our account - and I have all the amounts - I just need to set up a sub account for the equipment I believe so I can track it correctly per division then create the loan account as I have already set up the vendor - so then how would I post each payment to have it shown correctly in each account and applied properly?