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edith1006
March 8, 2020
Question

Got a Loan so I set up an account under Loan Payable. Now the loan money was directly paid to our Aluminum Supplier. (under Billets account) I recorded the loan with a journal entry for the beginning loan balance credited and Aluminum Billets Accoun

  • March 8, 2020
  • 1 reply
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Got a Loan so I set up an account under Loan Payable. Now the loan money was directly paid to our Aluminum Supplier. (under Billets account)

I recorded the loan with a journal entry for the beginning loan balance credited and Aluminum Billets Account  debited.

I need to issue a payment to that vendor for the Loan Amount but in order to do that,  I have to write a check, for which I'd need to choose a Bank Account where the payment is coming from but the Loan never enter our Bank Account. How do I take the money from the Loan to apply it against our Open Balance with this Vendor? Which by the way, will  pay the full balance,  leaving a credit in our account for future bills.

1 reply

L
LauraAB
March 9, 2020

Hello and welcome edith1006!

 

I'm glad to have you with us as a part of the QuickBooks Desktop family. I know it's integral to balanced bookkeeping to make sure information such as your loan's details and transactions are entered correctly. My goal is to help you find the right path for this situation and I'm happy to go over the options with you.

 

QuickBooks Desktop has a wonderful built-in feature called QuickBooks Loan Manager. With it, you can set up accounts, enter transactions, and account for things like interest and payments. This may be something you can consider for future use since you've already got some setup started, or you may be able to incorporate what you've already done with this feature. Learn more about it here: QuickBooks Loan Manager

 

As for the steps you've taken so far and your need to write a cheque, it should be as simple as entering the vendor name, which would hit the open balance on their profile, the bank account, and the other details. The bank account in question here is where the funds are coming from to make the payment. For instance, if you're paying the vendor back from the chequing account outside of QuickBooks, you'll want to choose the chequing account here. I hear what you're saying about the loan never going into your bank account, but the important detail here is how you're making the payment and where that money is coming from.

 

If you're not feeling certain about which steps to take, I recommend speaking with an accountant or bookkeeping professional. They have the training to back their knowledge and one with certifications in or experience using QuickBooks Desktop would also be a great asset to you. If you're not already working with such a person, you can find someone to connect with by searching our Find an Accountant page.

 

I'll be here if you need clarification about any of that. Enjoy your week.

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