Loan

This seems to be a bit tricky, @Lil2022.  I'll give you some information on how to handle a loan paid directly to a vendor.

If the loan money is used differently than having it deposited into a bank account, we'd usually recommend you reach out to your accountant. They're capable of providing you with the next steps. This also avoids messing up your books.

Once everything is in order, feel free to read these helpful guides about handling loans and repayments:

• Set up a loan in QuickBooks Online
• Amortization schedule in QuickBooks Online.

We're always here to answer further questions regarding this matter or particularly QuickBooks. Just leave a comment so we can reply right away. Keep safe!

@Lil2022 

When the bank pays the vendor directly, follow this process:

1) Set up a bank account called "Clearing Account".

2) Enter bills as you normally do.

3) When the bank pays the vendor, pay the bill in QBO and use the newly-created Clearing Account as the payment account.

4) Then, create a journal entry to move the amount in the Clearing Account to your Loan Payable account: debit Clearing Account, credit Loan Payable.

Thanks for your reply and links. I am going to talk with my accountant. Thank you

Thanks for your reply. I am going to talk with my accountant about this option. Thanks