Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
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! Go to Solution.
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.
Step 3: Reimburse the owner by creating a check transaction.
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!
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.
Step 3: Reimburse the owner by creating a check transaction.
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!
That really helped !! thanks for responding to quickly :)
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!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.