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Level 1

How do I categorize a payment in QBO made to my husband's account for a stock item he bought on his personal credit card?

Item was bought at supplier, but paid with personal credit card. Got invoice. Made transfer from business account to husband's personal account to pay him back. Bank is linked, how do I categorize this transaction in QBO?
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Moderator

How do I categorize a payment in QBO made to my husband's account for a stock item he bought on his personal credit card?

Hello and thanks for visiting us today, @useradele,

 

I can guide you through the process of recording business expenses using personal funds. The first step will be recording the purchase made by your husband. Follow the steps below:

  1. Press the + New button then select Journal entry.
  2. On the first line of the journal entry, choose the expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the next row, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Hit Save and close.

Once done, you may now reimburse the personal spending. There are two options for this. Take a look at the steps below.

 

Reimbursement using a cheque:

  1. From the + New icon, choose Cheque.
  2. Pick an account to use to reimburse the personal funds.
  3. In the category column, select partner's equity or owner's equity.
  4. Enter the reimbursable amount.
  5. Press Save and close or Save and new.

Reimbursement using an expense transaction:

  1. Go to the + New button and then pick Expense or Add expense.
  2. Enter the bank account to use for the reimbursement of the personal funds.
  3. In the category column, select partner's equity or owner's equity.
  4. Enter the amount of the reimbursement.
  5. Select Save and close.

For more information about this process, use this article for reference: Pay for business expenses with personal funds

 

Let me know if you have additional questions or concerns about this topic. I'll be right here to help you with it. Have a lovely day!