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Booking Bash
Level 1

Supplier Bill Payment

Hi, I have an invoice from my supplier and I have created a Bill in quickbooks for the same. I wish to record the payment which is made directly by the owner to the supplier. 

 

In journal entry, I am unable to select the supplier account to pass the bellow entry:

 

Dr. Supplier account

Cr. Related Party Dues

 

Please advise...

Solved
Best answer June 19, 2022

Best Answers
JessT
Moderator

Supplier Bill Payment

Hi Booking Bash!

 

From what I'm getting, the business owner used his personal funds to pay the supplier, and you want to record the reimbursement. I can help you with this. However, I highly advise letting an accountant review the entries to ensure the accuracy of your books.

 

Step 1: Credit owner's equity and debit Accounts Receivable.

 

Normally, the first thing you'll do is to create a journal entry to record the business expense against the owner's equity account, However, you already have a bill, so your JE will now be a debit to Accounts Payable and a credit to the equity account. This creates a supplier's credit, which can be applied as payment to the bill, and reduces the equity account.

 

 

Step 2: Pay the bill using created credit.

 

  1. Open the bill and click Make payment.
  2. Select the journal entry in the Credits section.
  3. Click Save and close.

 

 

Step 3: Reimburse the owner by creating a check transaction.

 

reimbursement check.PNG

 

Here's a related article for your additional reference: Pay for business expenses with personal funds. The only difference is that there's no bill yet.

 

You can always visit us back in the Community if you need more assistance. Take care and have a good one!

View solution in original post

3 Comments 3
JessT
Moderator

Supplier Bill Payment

Hi Booking Bash!

 

From what I'm getting, the business owner used his personal funds to pay the supplier, and you want to record the reimbursement. I can help you with this. However, I highly advise letting an accountant review the entries to ensure the accuracy of your books.

 

Step 1: Credit owner's equity and debit Accounts Receivable.

 

Normally, the first thing you'll do is to create a journal entry to record the business expense against the owner's equity account, However, you already have a bill, so your JE will now be a debit to Accounts Payable and a credit to the equity account. This creates a supplier's credit, which can be applied as payment to the bill, and reduces the equity account.

 

 

Step 2: Pay the bill using created credit.

 

  1. Open the bill and click Make payment.
  2. Select the journal entry in the Credits section.
  3. Click Save and close.

 

 

Step 3: Reimburse the owner by creating a check transaction.

 

reimbursement check.PNG

 

Here's a related article for your additional reference: Pay for business expenses with personal funds. The only difference is that there's no bill yet.

 

You can always visit us back in the Community if you need more assistance. Take care and have a good one!

Booking Bash
Level 1

Supplier Bill Payment

That really helped !! thanks for responding to quickly :)

 

 

 

Archie_B
QuickBooks Team

Supplier Bill Payment

It's good to know that everything went well, Booking Bash.

 

You're always welcome to post other concerns about bills and payments here in the Community. We'll be here to help. Take care and have a great day!