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Create payment from directors loan for an expense

Director has paid for a business expense from his personal account. I have entered the expense in the accounts as a supplier invoice but need to pay it from the director's loan account.

 

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Best answer 02-07-2019

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QBO does not allow you to use an asset account (directors...

QBO does not allow you to use an asset account (directors loan due in) as a payment source for a bill

the easiest way to do this is do not enter the bill, open the register for the loan due in account and make a new transaction as a decrease, select the expense account, enter something in the memo block and save

IF you have to have the bill entered, then either create a dummy bank account called clearing or use the cash account and make two entries

1. use pay bills, select the dummy bank account, and pay the bill
2. make a deposit in the dummy bank account, enter the same amount, and select the director loan account as the source (from) account for the deposit

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Has there been any change to this

Has there been any change to this
Established Community Backer ***

QBO does not allow you to use an asset account (directors...

QBO does not allow you to use an asset account (directors loan due in) as a payment source for a bill

the easiest way to do this is do not enter the bill, open the register for the loan due in account and make a new transaction as a decrease, select the expense account, enter something in the memo block and save

IF you have to have the bill entered, then either create a dummy bank account called clearing or use the cash account and make two entries

1. use pay bills, select the dummy bank account, and pay the bill
2. make a deposit in the dummy bank account, enter the same amount, and select the director loan account as the source (from) account for the deposit

View solution in original post

Established Community Backer ***

You may have difficulty entering a cheque against an invo...

You may have difficulty entering a cheque against an invopice but with a different payee (director). In this situation I would skip the invoice and go directly to cheque writing (delete invoice). Cheque made out to director. 3 items on cheque.

1.expense

2.director contribution (cash in) equal to expense

3.director loan reduction equal to expense

2 will be negative, resulting in a debit, 3 will be positive (credit)

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Re: QBO does not allow you to use an asset account (directors...

I have followed your suggestion:

 

open the register for the loan due in account and make a new transaction as a decrease, select the expense account, enter something in the memo block and save

 

What do I then have to do to to to offset it so that it doesn't double my net assets?