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I have a Vendor who borrowed money from our company for repairs on his truck. I first had it in as an invoice. Then I switched it to a bill. (Hot mess here) bare with me. There are actually 2 different bills. I pay this vendor for work completed on a weekly basis. I deduct payments from his weekly check to be applied towards those bills. Expense acct Repairs and Maintenance. How do I record his weekly payments deducted from his pay to bring down the total bill. Only way I know how to explain this, please help!
Thanks for visiting us here today, @specialk6995.
I have some information about recording your vendor payment. You'll want to delete the bill you've created for the borrowed money. Instead, create an asset account to track the vendor receivables payable by the borrowed amount. Then, create a service item using the asset account as your expense account. Lastly, enter a vendor credit to deduct the borrowed money. Let me walk you through how.
To create an asset account:
After creating an account, enter a check or an expense transaction to record the borrowed money.
Once done, create a credit memo using the service item. This will deduct the asset account automatically. Just go to +New, and then Vendor credit.
Below are the images of how they look like.
I've also added this link here in case you need help with other tasks in QBO. It has topics with articles that'll guide you along the way.
Keep me posted if you still have questions or concerns with vendor transactions. I'm always here to help. Take care and stay safe.
Where do I enter the money borrowed
Hello again, @specialk6995.
To enter the money borrowed, you'll need to enter a check or an expense transaction. Then create a vendor credit as suggested by my colleague @
ShiellaGraceA. Ensure to enter the correct amount in the Amount field.
To do this, here's how:
To create an expense or check transaction:
To create a vendor credit:
For more details, refer to this article: Enter bills and record bill payments in QuickBooks Online.
In case you want to run a report on all the money paid to a vendor, here's a resource you can check for guidance: Run a report with vendor totals.
Let me know if you have any issues after following those steps. I’m always here to help. Have a good one!
Thank you both for your help and please don't leave me because I'm gonna need you again I'm sure. You are a GREAT help to me
I still am not getting the purpose of the Vendor Credit. This vendor is an owner operator leased to our company. I have done all the steps and even went back and corrected his deductions for the loan on his pay. Each deduction is now under Loans to Others asset account created. I have also made the check for all items using the connected product/service I made. Can I add items to this check or do I need to make a new one for more money borrowed in the future because he has another bill coming for repairs to his truck. I went to COA and looked at the Loans to Others register. All of his payments are there. Can you explain the vendor credit?
Thanks for reaching out to us, specialk6995.
Let me enlighten you on how vendor credit works. In QuickBooks Online (QBO), you enter a vendor credit to record returns to vendors or refunds from vendors.
The way the credit is entered depends on how the purchases are recorded.
To further assist you, I'll provide you an article on applying vendor credits to vendor payment.
Just let me know if you need further assistance. I'll be here to help you.
I have a question. Will this amount then report on the balance sheet as a negative balance or a positive balance until the money has been recouped from the vendor?
Thanks for visiting us here today, @Roslyn2012.
I'll share some insights about the balance sheets in QuickBooks Online.
The accounts' negative numbers represent a credit balance that caused the company to pay more than was anticipated.
The balance sheet report might be challenging. Before moving on, it would be a good idea to seek assistance from your bookkeeper or accountant. If you don't already have one, we can assist you in finding one.
You can also watch this helpful video to understand more about the balance sheets.
Drop a comment below if you have other questions about the balance sheet. I’m always here to help. Have a nice day!
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