In a partnership the only way you can do guaranteed payments is if the payment is listed as such in the partnership agreement, by name and amount and the period of payment (weekly, monthly etc). If it is not then those payments are an equity draw.
I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this (one set per partner):
[name] Equity (do not post to this account it is a summing account)
>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)
>> Equity Drawing (record the value you take from the business here)
>> Equity Investment (record the value you put into the business here)
Any transfer of value to a partner is a [name] equity draw, so use that account as the expense (reason) for the payment.
IF, if you do have guaranteed payments in the partnership agreement then you should create an expense account called guaranteed payments and use that for that portion of the payment as the expense. Be aware that guaranteed payments is an audit flag in partnerships and sole proprietors. A guaranteed payment is still fully taxable on the IRS annual personal filing, but it is an expense to the company.
Typically the partnership invoices the customer and receives income. Then the partners take funds as they need to as partner equity draws. And if necessary sub contractors are paid and that payment expense account is linked to the 1099 reporting for each sub contractor.
