I have a short term loan from a company for which we provide services. They want me to decrease amount in the invoices to cover the loan amount. How to do this?
Company A gives loan to company B. Company B provide services to company A and issues invoices for the services. So now company A owes money to company B. They (company A) do not want to get the loan back but they want to pay less (for the amount of loan) for the invoices. How to give back the loan through invoices? I created Other current Liabilities in the Chart of accounts. I could probably make a discount in the invoices for the amount of loan. But how to show that I am giving the loan back through this discount. Or what is the right way?
When I follow your instructions on the second option something wrong is happening: when I do step 5.'Under Credits, select the journal entry to be applied as a credit.' I see that credit amount doubles instead of going to '0'.
I assume I made a mistake when I was creating journal entry. When I create Journal entry in the first line I should choose the Loan account and put the loan amount in the Debits and on the second line do I choose my bank account or A/R and put the loan amounts in the credits? Is it correct?