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Join nowI'm pretty new to Quickbooks. I manage a two member LLC that will be providing guaranteed payments to one or both partners, and I have set up a guaranteed payment expense account. How do I record the payment transaction?
Solved! Go to Solution.
Hi @martron,
Welcome to QuickBooks. You can record a guaranteed payment with a check transaction.
Here's how:
I would suggest for you to consult your accountant for the best method to record these transactions, in such a way that it works for your company.
In case you would need to create an owner's draw account, refer to this article for the steps: Set up and process an owner's draw account. It lists the steps on how to create the account, as well as the steps on how to write checks from that account.
Feel free to drop a comment below if you have other questions in mind. I'll be sure to get back to you.
Hi @martron,
Welcome to QuickBooks. You can record a guaranteed payment with a check transaction.
Here's how:
I would suggest for you to consult your accountant for the best method to record these transactions, in such a way that it works for your company.
In case you would need to create an owner's draw account, refer to this article for the steps: Set up and process an owner's draw account. It lists the steps on how to create the account, as well as the steps on how to write checks from that account.
Feel free to drop a comment below if you have other questions in mind. I'll be sure to get back to you.
That seemed to work. Thank you!
Hi @martron,
Thank you for your prompt reply, and you're very much welcome.
It puts a smile on my face knowing the steps I provided worked for you. You can always post here in the Community if you have other questions.
Wait what banking menu?
Wait where is the banking menu to make the guaranteed payment? I only see a way to write a check to a vendor.
Thanks for chiming in this thread, AustinSellinger.
In QuickBooks Desktop, the Banking menu is located at the top. Here's a sample screenshot for reference:
When it comes to recording the guaranteed payment, you can use the Write Checks option. Before doing so, please consult with your accountant for the accounts affected. Then, follow the steps provided by my colleague Ryan_M on how to write the check.
I'm adding this article for more details: Create, modify, and print checks.
You're always welcome to add a reply here if you have other concerns for QuickBooks. Thanks.
Is anyone making Direct Deposits of Guaranteed Payments?
Hi, slofo1.
I'll make sure that you can process guaranteed payments.
Yes, You can use direct deposit in paying vendors and independent contractors. Before you can do that you'll need to set up your vendor's direct deposit.
Here's how:
1. Open your Quickbooks Desktop account.
2. Go to Vendor Center.
3. Double-click the vendor you want to make a direct deposit.
4. Select the Additional Info tab and click the Direct Deposit button.
5. Click the Use Direct Deposit for (Vendor Name) box, and enter the bank information.
6. Select Send confirmation direct deposits to [email address] if you'd like to send an email.
They will send you 2 days before payment will arrive. Included email:
7. Enter the pin
Once done, you can now process a direct deposit for a vendor.
You can check this article that will help on how to Pay bills for vendors through Direct Deposit.
I've also included this article in managing direct deposit: Get help if you’re over a direct deposit limit.
Don't hesitate to reply to this thread if you have additional questions about vendors' direct deposits. I'm one post away. Have a good one.