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KellyMitton
January 25, 2022
Question

supplier financing accounts

  • January 25, 2022
  • 1 reply
  • 0 views

we are a small engine shop with a dealership from an equipment supplier (Toro).  As part of our deal with them they provide us with a financing arrangement wherein they provide equipment that is financed by them and so we can pay them back interest free for a period of time.  I have created this account as a credit card account in QBO which has worked for the most part however, when there is warranty work they provide us a credit for the parts and labour, and we need to invoice the work done so that the labour is accounted for in our P & L reporting.  If I define this account as a bank instead of a credit card I could use a payment method to have the dealer 'pay' for the invoice and they by account for the effort as well as update the account with the credit provided by the supplier.  But I'm not sure if there are other repercussion of making it a bank account rather than a credit card account!?!  Does anyone else out there deal with supplier financing accounts and/or warranty work????

1 reply

J
JamesM4
January 25, 2022

Hello KellyMitton, 

 

Welcome back to the Community. I'll be happy to answer your question and help steer you in the right direction so you can achieve your QuickBooks goals with ease. The program makes it easy to manage your income and expense. 

 

Recording your transactions the right way is a good exercise for keeping your books accurate. To ensure accuracy in your books, I recommend contacting an accounting professional to get expert advice on this. Doing this will help prevent any future discrepancies in your books. You can also reach out to accounting professionals on our site using this link here. 

 

I'll leave this question here so other accounting professional members can chime in and share their expert advice. Let me know if you have other questions, I'm here to help

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