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martron
December 20, 2019
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Guaranteed Payments

  • December 20, 2019
  • 1 reply
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I'm pretty new to Quickbooks.  I manage a two member LLC that will be providing guaranteed payments to one or both partners, and I have set up a guaranteed payment expense account.  How do I record the payment transaction?

Best answer by Ryan_M

Hi @martron,

 

Welcome to QuickBooks. You can record a guaranteed payment with a check transaction. 

 

Here's how:

  1. Go to the Banking menu.
  2. Select Write Checks. 
  3. Choose the correct bank on the Bank Account drop-down menu.
  4. Choose the partner in question on the Pay To The Order Of drop-down menu.
  5. Under the Account column, select the guaranteed payment account you created.
  6. Fill up the other fields on the check as necessary.
  7. Press Save & Close when done.

I would suggest for you to consult your accountant for the best method to record these transactions, in such a way that it works for your company. 

 

In case you would need to create an owner's draw account, refer to this article for the steps: Set up and process an owner's draw account. It lists the steps on how to create the account, as well as the steps on how to write checks from that account. 

 

Feel free to drop a comment below if you have other questions in mind. I'll be sure to get back to you.

1 reply

R
Ryan_MAnswer
December 20, 2019

Hi @martron,

 

Welcome to QuickBooks. You can record a guaranteed payment with a check transaction. 

 

Here's how:

  1. Go to the Banking menu.
  2. Select Write Checks. 
  3. Choose the correct bank on the Bank Account drop-down menu.
  4. Choose the partner in question on the Pay To The Order Of drop-down menu.
  5. Under the Account column, select the guaranteed payment account you created.
  6. Fill up the other fields on the check as necessary.
  7. Press Save & Close when done.

I would suggest for you to consult your accountant for the best method to record these transactions, in such a way that it works for your company. 

 

In case you would need to create an owner's draw account, refer to this article for the steps: Set up and process an owner's draw account. It lists the steps on how to create the account, as well as the steps on how to write checks from that account. 

 

Feel free to drop a comment below if you have other questions in mind. I'll be sure to get back to you.

    M
    martronAuthor
    December 20, 2019

    That seemed to work.  Thank you!

    R
    Ryan_M
    December 20, 2019

    Hi @martron,

     

    Thank you for your prompt reply, and you're very much welcome.

     

    It puts a smile on my face knowing the steps I provided worked for you. You can always post here in the Community if you have other questions. 

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