loan to a vendor

HI there, @pemyweb. 

Let me assist you in recording your loan payments. 

Let's make sure you have set up liability, vendors, and expense account for the loan in QuickBooks Desktop. You can refer to this link for more detailed steps on how to set it up: Manually track loans in QuickBooks Desktop. 

Once done set up liability account for the loan, here’s how to record the loan payment: 

1. Click the Banking menu, then choose Write Checks.
2. Select the Bank Account you want to use to pay the loan.
3. Add a check number if you send an actual check.
4. In the Pay to the Order of field, pick the name of the bank.
5. In the Expenses tab: 
   1.  First line: Liability account for the loan and the amount of payment.
   2. Second Line: Expense account for the interest and the amount.  

      6. Press Save & Close. 

The set of steps I've shared is a general way on how to record loans in QuickBooks. But I still recommend contacting your accountant for further accounting-specific help.  

If you don’t have an accountant available, you may visit our ProAdvisors page. You can contact one of our ProAdvisors and ask them for accounting advice.  

If you want to learn more "How do I" steps, visit our Help Articles page for reference.  

Keep me posted in the comment section down below if you have any other questions. I'll be always around ready to lend a helping hand. Have a great day!

Is @pemyweb asking for assistance on how to record a loan given to someone else, or a loan received (like when you borrow from a bank)?

I have a similar question.  My client allows certain vendors to use his supplier account, but if they don't pay the supplier back by the end of the month then my client pays the entire account. So the outstanding supplier invoices turn into a loan for these vendors, and I invoice them for it (customer invoice).  Meanwhile, they are still performing work for my client and they bill him for that (vendor bill). 

How do I cancel them out without actually exchanging money back and forth?

Example:  Invoice sent: 500.00;  Bill received:  540.00

I would like to deduct the 500.00 they owe my client from the bill and cut a check for the remaining 40.00, only.