QuickBooksHelpIntuit
How to pay back to the owner who paid for purchases on behalf of business
by Intuit• Updated 3 months ago
There are a few steps to record the pay back to the company’s owner who did some payment on behalf of the company. First, we'll have to create a Current Liability account to track the amount owing to the business owner for incurring expenses on its behalf.
Step 1:
- Select the Gear icon, then Chart of accounts and New.
- From the Account Type dropdown, select Current liabilities.
- From the Detail Type dropdown, select Current liabilities.
- In the Name field, type a relevant name such as 'Payable to owner'.
- Select Save and close.
Step 2:
- Select + New. Select Expense.
- Select the Payee.
- From the Category dropdown, select the account Payable to owner.
- In the Amount field, enter the total purchase amount as a negative figure.
Note: When done correctly, the amount at the top right should read S $0, as no cash has left the business at this point. - Select Save and close.
Step 3:
- Select + New. Select Transfer.
- From the Transfer Funds From dropdown, select the name of the bank account used to pay the owner.
- From the Transfer Funds To dropdown, select the account Payable to owner.
- From the Currency dropdown, if required, change the currency in which it was paid.
- In the Transfer Amount field, enter the amount reimbursed.
- Select Save and close.
Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.
More like this
- Record an owner's contribution or capital investment in your business in QuickBooks Onlineby QuickBooks•4•Updated June 21, 2024
- Mixing business and personal funds in QuickBooks Onlineby QuickBooks•Updated June 21, 2024
- Record paying back an investmentby QuickBooks•Updated June 21, 2024
- Categorise online bank transactions in QuickBooks Onlineby QuickBooks•7•Updated July 30, 2024