cancel
Showing results for 
Search instead for 
Did you mean: 
Newby13
Level 1

Reclassifying Personally-Paid Vendor Invoice to Owner Investment

Help. I had several vendor invoices (costs of good) that I had to pay with personal funds (year, I know, dumb idea). Rather than just reimbursing myself for those charges, I would like to reclassify the vendor invoices sitting in "Pay Bills" to my Owner Investment/Equity. How do I complete this transaction? Want the invoice removed from outstanding AP. TIA

2 Comments 2
Rainflurry
Level 12

Reclassifying Personally-Paid Vendor Invoice to Owner Investment

@Newby13 

 

You can create vendor credits (Enter Bills>Credit) for the same amount as each bill.  When you create the credit, assign it to your owner's equity account.  Then, pay each bill with the credits.  This will remove the bills from A/P and post the 'payment' as an increase to your equity account.

 

FYI - Generally, vendor bills do not post directly to cost of goods sold (COGS).  COGS is the account that is posted to after you sell inventory, not when you purchase it from your vendor. 

ZackE
Moderator

Reclassifying Personally-Paid Vendor Invoice to Owner Investment

Thanks for joining the Community, Newby13.
 

You can reclassify your vendor bills by editing them and changing the assigned account; however, I'd recommend working with an accounting professional before doing this. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:

  1. Go to our Find an Accountant page.
  2. Use your City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your nameYour email, and Your phone number (optional) fields.
  3. Hit Send message.


You'll also be able to find many detailed resources about using QuickBooks in our help article archives.
 

If there's any additional questions, I'm just a post away. Have an awesome Thursday!

Need to get in touch?

Contact us