Expenses

Hi there, @Grimayoj.

I can guide you on how to record your transactions based on the scenarios you provided.

To start, you can create half of the payment for the bill paid by the company using the company's bank account. To do this, we can utilize the Pay bill feature. Here's how:

1. In the left menu, click the + New button.
2. Select Pay bills. 
3. Set the Payment Account and Payment date.
4. Select the bill you want to pay and enter the half of the amount in the Amount field.
5. Click Save and close.

Then, enter a journal entry for the remaining amount that'll be paid by owner/employee. 

1. In the left menu, click the + New button.
2. Select Journal entry.
3. On the first line, select the Accounts Payable.
4. Enter the balance amount in the Debits column.
5. On the second line, select Partner's equity or Owner's equity.
6. Enter the same amount in the Credits column.
7. Select Save and close.

Once done, you can apply the journal entry when paying the other half of the bill.

As for your other concern, you can create a check or an expense to record a reimbursement. For detailed instructions, proceed to Step 2 in this article: Pay for business expenses with personal funds.

Moreover, I'm also adding these helpful resources for you to review that might be helpful if you pay for personal expenses from a business bank account:

• Mixing business and personal funds
• Pay for personal expenses from a business credit card or bank account in QuickBooks Online

Please let me know if there's anything else I can do for you. I'll be standing by for your response. Have a great day.

What do  you mean by this "Once done, you can apply the journal entry when paying the other half of the bill."

Thank so much

Oh and how to I keep track in quickbooks that I need to reimburse this employee/owner..

Thanks

Hi Grimayoj!

Hope you're having a good night! I'll continue to help you with your transactions because Mirriam is already out of office. I'll explain what the phrase you quoted means.

It's assumed that the owner/employee is putting money into the business because he paid half the bill with personal funds. That situation can be recorded in your books through a journal entry, where the money is credited to equity and debited to Accounts Payable.

We're not done yet since the bill still remains unpaid at this point. Therefore, you'll want to link the journal entry to the bill to mark it paid. And that's what the sentence you quoted means.

Link the journal entry to the bill:

1. Open the bill transaction.
2. Click Make payment.
3. Select the journal entry in the Credits section.
4. Click Save and close.

On the other hand, the reimbursement can be recorded in a form of a check or an expense transaction. Just use the same equity account as a category so it offsets there.

Lastly, you can check your vendor's balance after entering all transactions. Then, check also the equity account in your Chart of Accounts to see how the transactions you entered affect it.

I only a comment away if you need more help. Take care!

Jess,

Thank you for your response... So, there are many owners here and using this method may require a meeting to discuss equity... Since this is going to be repaid shortly is there also a method that doesnt hit the equity account? 

Thanks so much

Good morning, @Grimayoj. 

Thanks for coming back to this thread. 

There isn't another method that wouldn't hit the equity account to record this information. However, you can consult with your accountant to be sure if this is the right instructions for you. 

Feel free to reach back out if you have any other concerns. We're always here to have your back. Take care!