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January 5, 2024
Question

Shareholder loan

  • January 5, 2024
  • 1 reply
  • 65 views

The shareholders wired payment directly to a vendor to pay invoices.  How do i record this loan on QB online and then use it to record payment to the invoices?

1 reply

QuickBooks Team
January 5, 2024

Thank you for reaching out to the Community, Pdonna. I understand that you wanted to record a loan and use that as payment to your vendor. No worries I am here to help.

 

For you to record the loan in QuickBooks Online, please follow these steps:

  1. On the top left corner, Click + New.
  2. Select Bank deposit, then choose an Account to which the loan is sent.
  3. Under Add funds to this deposit, select the received from the section, then enter what type of account loan. 
  4. Type the Amount you received. Click Save and Close.

 

Once you have recorded the loan, you can use that transaction to pay the vendor through Pay Bills. 

Here's how:

 

  1. Click the +New icon on the left panel.
  2. Go to Pay Bills, and under Payment Account choose which payment account you recorded for the loan.
  3. Select the Vendor you are going to pay, then click Save.

 

For additional information, check out this article for you to be guided: How to set up a loan in QBO.

 

Also, you may visit this link to guide you on how to record loans from a company or owner:

How to record a company loan from a company officer or owner


You can always post your reply below if you have more questions on how to record loans or record payments using a loan. I'm always here to help you. Take care.

 

August 17, 2024

I have the same situation and I don't think this is quite right. The owner did not deposit funds into the business bank account but paid the vendor directly from their personal account. How do I record this? As an expense report with payout going to shareholder loans?

 

Rainflurry
Level 11
August 18, 2024

@CinD 

 

If the owner/shareholder is not being reimbursed, the best way to handle this is to create a Vendor Credit for the amount of the payment and assign the appropriate equity account to the credit - Owner's Capital/Equity if sole proprietorship, Shareholder Contribution if S-Corp, etc.  Then, apply the credit to the bill.