how to make entries for vendor credit and loan repayment

Hi there, @gemwaresupply.

How's your day going so far? I hope all is well. 

For this one, I recommend consulting with your accounting professional. Your accountant will know the best way to handle the loan and credit based on your business needs. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center. 

I also wanted to share a couple of help articles that we have available for entering loans and credits below: 

• Record a vendor refund in QuickBooks Desktop
• Manually track loans in QuickBooks Desktop

Please don't hesitate to let me know if there is anything else I can assist you with. Take care and have a wonderful day ahead! 

@gemwaresupply 

"How do I enter his bill ($1230), credit the warehouse rent account ($560) and reduce the amount of the outstanding loan (by $670) into Quickbooks?"

Presumably, this is the same question you had in a different post with the caveat of the loan added.  You can ignore my post on the other thread.  This situation has nothing to do with reducing expenses, the "credit" from Vendor A reduces your note receivable (loan you made to Vendor A), not your expense.  The bill for the warehouse rent also does not apply in this situation.  What you have is a $560 credit that reduces the amount you owe on the bill from Vendor A that also needs to reduce the amount owed to you by Vendor A.  To do this, create a journal entry - debit A/P for Vendor A and credit the loan receivable asset account.  You now have $560 to apply to reduce vendor A's bill and the loan receivable is reduced by $560.  That's it.