Can I use owner's draw to pay a vendor?

Thanks for checking in with us, teamp3.

An owner's draw account is an equity account used by QuickBooks Online to track withdrawals of the company's assets to pay an owner. With that said, the option to apply it as a reimbursement to a vendor is unavailable. To learn more about setting up and paying an owner's draw, you can check out this article: Set up and pay an owner's draw.

If you want to record business expenses you made with personal funds and enter a reimbursement, then we can create a journal entry transaction for this one. Here's how:

1. Click the + New Plus icon. 
2. Select Journal Entry.
3. On the first line, select the expense account for the purchase.
4. Enter the purchase amount in the Debits column.
5. On the second line, select Partner's equity or Owner's equity.
6. Enter the same purchase amount in the Credits column.
7. Press Save and close.

Then, proceed to the next steps in this article to finish the process: Pay for business expenses with personal funds. You can learn more about managing expenses in QBO by checking out this article: Enter and manage expenses in QuickBooks Online.

Also, you may want to check out this article as your reference to guide you in pulling up vendor reports to see all their payments and compare your expenses in QBO: Common custom reports in QuickBooks Online.

If there's anything else you need, or you have other concerns about managing vendor transactions in QBO, I'm always ready to help. Just leave a comment below and I'll get back to yo

@teamp3 

"Can I take an owner's draw and apply some or all of it to a reimbursement?"

Did you pay a business expense personally and now you want to reimburse yourself by taking an Owner's Draw?  

I was traveling with my assistant paying the bulk of our travel expenses along the way.  I would like to take an owner draw to pay for my trip, but I also need to reimburse my assistant for the expenses already incurred.

Thanks for reaching out to us @teamp3. I can provide a quick guide on how to pay for business expenses using personal funds and how to set up and pay an owner's draw.

Several methods are available to document a business expense paid using personal funds. Here's how:

1. Select + New.
2. Select Journal Entry.
3. On the first line, select the expense account for the purchase.
4. Enter the purchase amount in the Debits column.
5. On the second line, select Partner's equity or Owner's equity.
6. Enter the same purchase amount in the Credits column.
7. Select Save and close.

To ensure a smooth reimbursement process, you can choose from two options if you want to decide how you want to reimburse the money.

Furthermore, I recommend that you seek professional advice from a qualified accountant. With their extensive knowledge and experience, they can assist you in making informed decisions that align with your financial goals and help you avoid costly mistakes.

In addition to the tasks at hand, you should also make arrangements for setting up and paying an owner's draw.

For future reference, after setting up an owner's draw in QuickBooks, you can record the transaction in the system: Create and record checks in QuickBooks Online.

Keep me updated if you have other questions about handling entries or any QuickBooks-related concerns. I'm always prepared to help you. Have a great day ahead.

@teamp3 

If you and your assistant paid the expenses personally, there's no need to take a draw.  You can just enter bills for the expenses (set you and your assistant up as vendors) and then issue the payments.