Apply funds from Other Liability account as customer payment

@wendi.kopacz 

"Is there a way to credit the customer directly from Loan From (preferred) account?"

Sure.  Create a journal entry and debit the Loan From liability account and credit the A/R account for that customer.  Then, apply the "payment" created by the journal entry to the customer's invoice by going to New > Receive payment..  

Thanks so much!   Forgive me as Im trying to clean up some records here.  Many of these have already been invoiced/ received payment.  Either way, Im now confused on what ends up happening with the invoice.  When I create the JE, I return to the invoice to apply the payment.  This is where Im confused as the end result is puzzling for me.  I want to be sure its correct.   I go to the open invoice>Receive Payment.  Once I enter the deposit information and amount, QBO automatically applies it to the invoice, but also to the Credit option - to JE.  This leaves payment unapplied and creates an additional credit.  So, I removed the Credit to JE option from the Receive>payment.  This successfully applies the payment, zeroes out the balance on both the invoice and "payment" but now the total appears in the negative.  Is this right?  I have attached a screenshot.  Thanks for your help!  Have a great day!

@wendi.kopacz 

"Once I enter the deposit information and amount, QBO automatically applies it to the invoice, but also to the Credit option - to JE."

Why are you entering deposit information?  There shouldn't be any 'Deposit To' or 'Amount received' because you're applying the credit from the journal entry to the invoice, you're not receiving a payment.  That's what's causing the additional credit.  Leave the 'Amount received' as $0.00 and check the box for the invoice and the credit and you should be all set.  If you enter an amount in the 'Amount received' box and select the journal entry, that tells QB that you applied the credit and ALSO received a payment, thereby duplicating the credit.    

Thanks again... Looks like maybe we are back to where I started.  Let me rephrase.  We have 2 centers..operating as 2 different businesses... lets call them X and L. Sometimes a CUSTOMER PAYMENT gets processed at the wrong center (say X).  Say client John at Center L pays his monthly installment of $1000 to apply against his balance of $10,000 but the sales rep unintentionally (to my chagrin) processes it into X.   Not only, must that money be sent from X to L, but it has to apply against Johns invoice.  Furthermore We also have Loans outside of sales/income that are transferred between X & L. I was instructed to create an other liabilities account w/ 2 sub accounts.. one of which holds funds deposited on a monthly or quarterly basis to account solely for such occurrences as above (ref: L Customer John). 

To ensure our Customers payments are invoiced & payments / deductions reflected, we Receive payment & deposit accordingly.

Internally, however, the Loan From account holding the funds, much have the appropriate deduction.  

My questions are - how to properly reflect the deducted amounts from Loan From? and, if possible, how to move funds OUT of LoanFrom into the Customers account?  If not, what is the proper way to affect the books correctly?  Is there another / better type of account (say savings) to affect these things?