nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

Payment of Sales Invoice against a loan account

charliez

Hello,

We have an Asset account (Account Type: Other Asset) to record the money we have loaned to our parent company.

We also have some Sales Invoices to our parent company - but they won't pay them. Instead, they want us to reduce the loan account according as a way of paying these Sale Invoices.

How do I do this?

Thanks in advance.

Find more posts tagged with

Accepted answers

Mike_James

Hi @charliez , that's correct, and it increases the loan account, I was slightly confused in that I took from your first post that head office expected it to reduce.

All comments

charliez

OK... so here's what I've done.

I've changed the Asset Type of the loan account from "Other Asset" to "Bank".

I then recorded a payment for the outstanding sale invoices, using this loan account as the "Deposit to Account" ... effectively increasing the loan to the parent company.

Seems to work OK. Is there anything I should be aware of?

Mike_James

Hi @charliez , the sales invoices are debtors, so both them and the loan account are assets and can't be offset. I suggest you point this out.