Co. purchased vehicle, invoice put into assets, director personally paid deposit, company paid balance. How to clear balance supplier invoice, using director loan acc?

Hello accounts151,

I appreciate your time here in the Community. I'm here to share information about clearing the bill balance in QuickBooks Online.

When creating the bill for the purchased vehicle, it would be best to enter the amount that the company will be paying only. By doing so, the payment that you'll enter will directly clear the balance and show as completely paid.

Additionally, please know that clearing the supplier invoice using the loan account isn't possible.  To record the deposit for the business expense (vehicle) made by the director, you can use the Journal Entry feature.

Here are the steps:

1. Click the Plus sign.
2. Select Journal Entry.
3. Under the Account column, add the company's bank account and the director's loan account on the second line.
4. Below the Credit column, add the amount of the payment in the same row as the company's bank account.
5. Below the Debit column, add the same amount in the same row as the loan account.
6. Add descriptions whenever needed for tracking purposes.
7. Click Save and Close.

Check out this visual guide:

However, I suggest working with an accountant to seek expert advice on the accounts you'll be using during the reconciliation. This way, your books will be accurate and error-free.

For additional reference into using the Journal Entry feature, please refer to this article:

Create a journal entry.

Let me know if you have additional questions concerning the recording process, and I'll be sure to get back to you.