cancel
Showing results for 
Search instead for 
Did you mean: 
martron
Level 2

Guaranteed Payments

I'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
Best answer December 20, 2019

Best Answers
Ryan_M
Moderator

Guaranteed Payments

Hi @martron,

 

Welcome to QuickBooks. You can record a guaranteed payment with a check transaction. 

 

Here's how:

  1. Go to the Banking menu.
  2. Select Write Checks
  3. Choose the correct bank on the Bank Account drop-down menu.
  4. Choose the partner in question on the Pay To The Order Of drop-down menu.
  5. Under the Account column, select the guaranteed payment account you created.
  6. Fill up the other fields on the check as necessary.
  7. Press Save & Close when done.

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.

View solution in original post

12 Comments 12
Ryan_M
Moderator

Guaranteed Payments

Hi @martron,

 

Welcome to QuickBooks. You can record a guaranteed payment with a check transaction. 

 

Here's how:

  1. Go to the Banking menu.
  2. Select Write Checks
  3. Choose the correct bank on the Bank Account drop-down menu.
  4. Choose the partner in question on the Pay To The Order Of drop-down menu.
  5. Under the Account column, select the guaranteed payment account you created.
  6. Fill up the other fields on the check as necessary.
  7. Press Save & Close when done.

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.

martron
Level 2

Guaranteed Payments

That seemed to work.  Thank you!

Ryan_M
Moderator

Guaranteed Payments

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. 

AustinSellinger
Level 1

Guaranteed Payments

Wait what banking menu?

AustinSellinger
Level 1

Guaranteed Payments

Wait where is the banking menu to make the guaranteed payment? I only see a way to write a check to a vendor. 

RenjolynC
QuickBooks Team

Guaranteed Payments

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.

slofo1
Level 1

Guaranteed Payments

Is anyone making Direct Deposits of Guaranteed Payments?

DebSheenD
QuickBooks Team

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:

  • Your company name
  • The amount of payment
  • The date the payment will arrive in the independent contractor's bank account (the date shown on the independent contractor's check in the check register)
  • The last four digits of the independent contractor bank account number. Note: If you don’t see an email address or the email address is incorrect, you can add or update the email address by selecting the Address Info tab.

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.




 

jbe741
Level 1

Guaranteed Payments

Hi - were you able to figure this out in quickbooks?  thank you


@slofo1 wrote:

Is anyone making Direct Deposits of Guaranteed Payments?


 

RCV
QuickBooks Team
QuickBooks Team

Guaranteed Payments

Thank you for joining the thread. Let me help you process guaranteed payments in QuickBooks Online (QBO), jbe741.

 

We can use direct deposit if you need to pay guaranteed payments to your vendors and independent contractors. We'll need to have a company bank account connected to use direct deposit. If you haven't done so, set up your company payroll for direct deposit. Then, invite your contractor to provide their W-9 business and bank account information to you. Your contractors will be invited to create a QuickBooks Self-Employed account, where they can manage their contractor profile and track payments received. Or follow the steps below to add the account info yourself:

 

  1. Open the Vendor Center.
  2. Double-click the vendor you wish add the direct deposit to.
  3. Select the Additional Info tab and select the Direct Deposit button.
  4. Tap the Use Direct Deposit for: [Vendor Name] box, and enter the bank info. 
  5. Choose Send confirmation direct deposits to [email address] if you'd like a payment confirmation. Intuit will send an email to the email address entered two days before payment will arrive in the independent contractor's bank account. Included in the email:
    • Your company name
    • The amount of payment
    • The date the payment will arrive in the independent contractor's bank account (the date shown on the independent contractor's check in the check register)
    • The last four digits of the independent contractor bank account number. If you don’t see an email address or the email address is incorrect, you can add or update the email address by selecting the Address Info tab.
  6. Enter your direct deposit pin when prompted.

 

You can check out this article to learn more about paying bills through Direct Deposit: Pay bills from vendors through Direct Deposit

 

We can also record a guaranteed payment with a check transaction. Just follow the steps and details provided by Ryan_M on this thread. Feel free to visit our Expenses and vendors page for more insights about managing your vendor's transactions.

 

I'd like to know how you get on after trying the steps or if you are referring to something else. I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always.

BKBLLC
Level 1

Guaranteed Payments

Hello, 

 

Is there a way to make guaranteed payments to owners via direct deposit in QuickBooks online version? If so, how do I set this up?

ReymondO
QuickBooks Team

Guaranteed Payments

Thanks for joining the thread, @BKBLLC.

 

I'm here to share insights about using direct deposit in QuickBooks Online.

 

You can only use Intuit’s direct deposit services to pay your employees or contractors. For paying other company expenses, use another payment method such as writing checks instead.

 

If the owner is set up as a contractor, then you can use direct deposit. All you have to do is to ensure that your company's payroll is set up for direct deposit, then follow these steps to use the service:

 

  1. Go to the Payroll menu, then click Contractors.
  2. Select Bank account.
  3. As prompted, enter the following: 
    • Account Number
    • Account Type
    • Routing Number
    • The account holder's Phone Number
    • Account holder Full Name
  4. Click Save.

 

For complete details, check the Set up your contractor's direct deposit section for QuickBooks Online Payroll in this article: Set up and manage direct deposit for your contractors.

 

If not, you can't use direct deposit to make guaranteed payments if they're set up as regular vendors. However, you can pay them outside QuickBooks and record the payment by creating checks.

 

Furthermore, you can check this article to get reports on all the money you've paid: Run a report with vendor totals

 

Please let me know if you need further clarification about making guaranteed payments to owners via direct deposit. I'll be here to answer them for you. Have a good one.

Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.

Need to get in touch?

Contact us