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Ash_Rainer's avatar
Ash_Rainer
Experienced Cover User
5 years ago
Solved

Invoicing regarding owner's part-payment to pay the invoice.

Hi, this is a rather convoluted query so I'll lay it out as best I can.   Problem:  The owner bought plant on a single invoice where the company paid 3 separate installments, and the owner paid the...
  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi Ash_Rainer 

     

    Thanks for your post. Generally speaking you could create an Owner Loan account. As the company owes the Owner it would generally be a liability account and you would need to set the Account Type as Credit Card so that you can select it as the Pay From Account.

     

    You could then record the payment of the 4th instalment in Pay Bills and select that owner loan account as the Pay From Account. 

     

    When the company reimburses the owner you would record a Transfer Money transaction. The Transfer Money From account would be the bank account you withdraw the money from and the Transfer Money To account would be the owner loan account. This will leave the owner loan account with a zero balance.

     

    If you are unsure about creating the loan account or recording these transactions I do recommend speaking to your accountant.

     

    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.

Tracey_H's avatar
Tracey_H
Former Staff

Hi Ash_Rainer 

 

Thanks for your post. Generally speaking you could create an Owner Loan account. As the company owes the Owner it would generally be a liability account and you would need to set the Account Type as Credit Card so that you can select it as the Pay From Account.

 

You could then record the payment of the 4th instalment in Pay Bills and select that owner loan account as the Pay From Account. 

 

When the company reimburses the owner you would record a Transfer Money transaction. The Transfer Money From account would be the bank account you withdraw the money from and the Transfer Money To account would be the owner loan account. This will leave the owner loan account with a zero balance.

 

If you are unsure about creating the loan account or recording these transactions I do recommend speaking to your accountant.

 

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.

Ash_Rainer's avatar
Ash_Rainer
Experienced Cover User
5 years ago

Thanks Tracey, that worked a treat.