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Level 1

How to pay invoices using owner's draw?

The owner of our company has purchased/used materials, from the company inventory, for personal use. The materials have been put onto invoices (for the sales/use tax) and the owner wants to apply the balance of the invoice to owners draw. How can we mark the invoice paid, using owner's draw? Is this possible? If not, I would appreciate any recommendations on how to record this type of transaction. 

 

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Level 7

How to pay invoices using owner's draw?

Two options:

 

1) receive customer payment for the full amount.  Make a deposit and select that payment.  Drop down a line and under account type in the owner's draw account and enter the amount as a negative so the bank deposit is zero.

 

2) receive customer payment.  Highlight the invoice, select discounts and credits.  Create a discount and use the owner's draw account in the amount of the invoice.

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QuickBooks Team

How to pay invoices using owner's draw?

Hello there, @DMJ79.

 

Allow me to help walk you through paying your invoices using owner's draw.

 

Here's how:

  1. Create the Invoice.
  2. Receive Payment
    1. Open the Invoice.
    2. Choose Receive payments.
    3. Click on Discount and Credits.
    4. Select the Discount tab.
    5. Put in the amount of the invoice.
    6. The Discount Account should be the Owners Draw account.
    7. Click Done.

11.png That should do it! this should get you on the right track paying your invoice using Owners Draw account.

 

Feel free to the visit us here in the Community if you have other questions about recording y our Accounts Receivable in QuickBooks desktop.

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Level 1

How to pay invoices using owner's draw?

Hello  @IamjuViel 

 

 

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Level 1

How to pay invoices using owner's draw?

Hello @IamjuViel !

 

How do we do this in quickbooks online?

Thanks,

Highlighted
QuickBooks Team

How to pay invoices using owner's draw?

Thank you for joining the thread, @chrishelle.

 

Let me share some ways to record payments to owners draw in QuickBooks Online.

 

First, record the payment to the undeposited funds then deposit it to your bank account. Then, add the owners draw account as a negative amount under the Add funds to this deposit section.

 

To record the payment:

 

  1. Select Receive Payment from the Plus (+) icon.
  2. Choose a customer under the Customer section.
  3. Enter the payment date, payment method, and select Undeposited Funds under Deposit to.
  4. On the Outstanding Transactions section, select the invoice you want to pay, enter the payment amount. 
  5. Save the transaction.

g16 1.PNG g16 2.PNG

 

To deposit the payment:

 

  1. Under Other, pick Bank Deposit from the Plus (+) icon.
  2. Pick a bank account where you want to deposit the amount under the Account section.
  3. Go to the Select the payments included in this deposit section, then check the box on the transaction/s you want to deposit. 
  4. Go to the Add funds to this deposit section, then select the Owners draw account under the Account column,  and add the amount as negative.
  5. Save the deposit.

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You can also reach out to a professional accountant for other ways of recording the transaction.

 

As always, feel free to skim through our help articles as your reference in the future.

 

Let me know if you have any other questions. I'm more than happy to help however I can. Have a great day!

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