business expense from personal funds- how to categorize check to partners

Hi there, cowman.

Thank you for adding the link of your reference in recording the reimbursement.

Your partner will be your vendor in creating the check. Here's how to record the reimbursement as a Check:

1. From the + New tab, select Check.
2. Select your partner as the Payee.
3. Select a bank account to use to reimburse the personal funds.
4. Select Partner's equity or Owner's equity in the Category field.
5. Enter the reimbursement amount.
6. Click Save and close or Save and new.

Afterward, you may reconcile the transaction to ensure they match your bank and credit card statements. I've added this link for the detailed steps of the reconciliation steps: Reconcile an account.

I'm just around if you have other concerns about recording the reimbursement.

Thank you so much for the help! 

A couple f/u questions: 

pt 2. for partner as the payee, is the partner added as a vendor? 

pt 3 for partner's equity is the category "partner investments, equity"? What if we have sub-accounts for each partner? 

Also, just to confirm this is in addition to recording it as an expense, correct? 

I'd be glad to answer these questions for you, cowman.

To start, yes, the partner should be added as a vendor in QuickBooks Online. If you haven't added the payee, I'd recommend following these steps:

1. Go to Get paid & pay or Expenses, then select Vendors.
2. Select New vendor.
3. Complete the fields in the Vendor Information window.
4. Click Save.

Once done, we can now add the details in the Category column. To ensure the correct account is selected, I'd suggest consulting an accountant. If you don't have one, you can visit our Find a Proadvisor website to choose an expert near you.

Lastly, we'll have to create a journal entry to track the expense. Then, choose either to record a Check or Expense for the reimbursement. For more details, please see this article: Pay for Business Expenses with Personal Funds.

Additionally, I've added our complete reconciliation guide that'll help you review your accounts in QuickBooks to ensure they match your bank and credit card statements.

Please don't hesitate to get back on this thread if you need additional assistance tracking or categorizing the reimbursement. We're always here to help you out.

Thank you, Charlene. 

In the link you sent, https://quickbooks.intuit.com/learn-support/en-us/help-article/journal-entries/pay-business-expenses... the instructions in the video are different from the text. 

Video says to do with "expense" and then "check" for the reimbursement

The text says to do a journal entry and then a "check" or "expense" for the reimbursement. 

I followed the video and created an expense with two line items to create zero balance and then the expense for reimbursement. 

Do I need to do the journal entry and then the expense OR check instead? 

Thanks for getting back to this thread, @cowman.

When recording your business expenses paid with personal funds, you'll have to create a journal entry as your first step. Here's how:

1. Click + New.
2. Select Journal Entry.
3. On the first line, choose the expense account for the purchase.
4. Enter the purchase amount in the Debits column.
5. On the second line, select Partner's equity or Owner's equity.
6. Enter the same purchase amount in the Credits column.
7. Click Save and close.

After that, you'll have two options on how to record the reimbursement. You can either record it as a check or expense it in QuickBooks Online (QBO). 

Since this is for recording purposes only, both of these options will do as long as you follow the complete steps in the article.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

Please know you can continue to reach me here with any additional questions. Thanks for coming to the Community, wishing you continued success.

thanks, @ReymondO . So, the instructions in the QB video are incorrect? I followed that, so I want to confirm first...should it be removed? That is what confused me initially 

I appreciate you for getting back here in the thread, @cowman. I'll share an insight to help you clear things out so you can complete your tasks inside QuickBooks Online (QBO).

Know that the steps given and the video instruction inside the article work the same way. The first steps in the reference will show you how to record the business expense paid using your funds. In step two, there are two options on how you want to handle the reimbursement of the money.

If you've selected the first option, then there's no to follow the steps provided for option two. If you're unsure of this, I recommend checking with your Accountant. This way, they can expand the explanation or even provide you with the most efficient way to accomplish this feat.

In case you don't have an accountant, feel free to visit this page to get one: Find a QuickBooks ProAdvisor.

Additionally, I've got you this handy article about reconciling an account in QBO: Reconcile an account in QuickBooks Online.

You can also visit this page in case you encounter issues after reconciling the account: Fix issues the first time you reconcile an account in QuickBooks Online.

Thanks for dropping by here today, @cowman. Feel free to leave a comment below if you have any additional QuickBooks-related concerns. We've got you covered. Have a good one!