Paying Bills

[aturneng]

Hi All

I have a question regarding Paying a Bill.  

I have recorded purchases we made from a company.  They were paid by someone else on a credit card that doesn't belong to this business.  

How do I record this amount as being paid from our account with the supplier, but not paid by us?

I think I would then have to show this amount as a loan from the other person, but really need this to be an account that I can post to as a Bank Account.  Can someone wiser than me please help

Hope this makes sense

Audrey

[Tracey_H · Accepted solution]

Hi @aturneng 

Thanks for your post. One of the common ways to deal with this situation is to create a loan liability account. In most cases it would be a director making the payments to you would call the account the Director loan account, but you can call it whatever suits your business. You'll need to make sure the Account Type is Credit Card when creating the account.

Then when recording a Pay Bills (or Spend Money) transaction change the Pay from Account to the Director loan account:

When you repay the director, record a Transfer Money transaction with the Transfer from account as the bank account and the Transfer to account as the director loan account.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[aturneng]

Thank you for your answer.  I did think this is how I would show this transaction in MYOB, but just wanted to ask someone with more knowledge 

Audrey