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T
Ten Forty-Two Woodworks
August 18, 2020
Question

Repaying a friend for making purchases for my business.

  • August 18, 2020
  • 1 reply
  • 0 views

Hello,

 

Due to the current pandemic, I have had to quarantine due to an exposure. During this time, I had a friend purchase supplies and materials for my business from Home Depot, so I could continue working while home.  I was given the receipt from the purchase and I already reimbursed my friend for the purchase of items.

 

Quickbooks is linked to my bank account, so I currently have a check that is pending review (the reimbursement check). My question is this, how do I properly log the expense at Home Depot and the reimbursement check I paid my friend. Is this two separate entries that I link to each other? Do I just need one entry? Do I need to create another account under my chart of accounts and have my friend listed as a line of credit that I repaid?

 

I want to make sure I log this properly so there is no question as to what was done. Thank you in advance!

 

1 reply

T
Ten Forty-Two WoodworksAuthor
August 18, 2020

I failed to mention I am using Quickbooks Online.

Kristine Mae
Kristine Mae
August 19, 2020

Let me help you get around with it, Ten Forty-Two Woodworks.


You can either enter the transaction manually and match it to the downloaded one or just add them directly from your bank account.

 

If you want to enter it manually, you'll have to create one check for the home depot expense and reimbursement to your friend. You may want to create a specific expense account for home depot. Then, add your friend as the payee or supplier. Or, add home depot as the payee and enter in the memo that it's a reimbursement.

 

Once done, you can match it to the check in the For Review tab. Although, if you select the second option, you'll just have to categorise and add the downloaded transaction directly from the bank account. You can get the steps on how to categorise, match, and add in this article.

 

If any question pops up, don't hesitate to drop a comment below. We'll reply as soon as we can.

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