Loan from Director, how to handle bank transfer

Thankyou for taking the time to repsond Lisa,

I

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LRBooks61 wrote:

Hi

 

Have you set up the Loan account from Directors as a bank account ?

 

If I understand you correctly :

 

You have purchased items for the business from personal funds and are wanting to repay the business owners as cash flow allows? is this correct?

 

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Not as a bank account, but as a liability - loan from Director

And yes your summary is correct.  Paying a bill from personal funds, and then reimbursing director when cash flow allows.

I have set up a bill from supplier and payed the supplier using personal funds from the director,  I have recorded this in the 'record payment' against the bill, using the loan from director account.

When funds allow, I then perform a transfer in myob, using the transfer money tool

At the same time as the myob transfer, i do the real transfer in the real bank account,  however the nuance is I might bundle multiple real transfers in order to reduce real transaction fees in the real bank account.

I beleive this is as per what you describe.

This then shows up in the debit and credits as balancing for the loan from directors

when the bank feeds update, the real transfer shows up....this is where I am confused i think.  As i don't know what to associate it too or how to split it.   I code everything in the references or descriptions with the payment # and tranfer #'s in the hope to distribute correctly.

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Don't set up a bill for the payment of the directors loan , I think that is where you are going wrong. It is in itself self expanatory. Just allocate the repayment against the directors loan bank account

 

Hope this helps

 

Lisa

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I am not setting up a bill for the directors loan reimbursment (well, not that i know off).  If i split the transfer across the appropriate transfers from the bank feed using allocate, it seems to put the debit and credit out of balance.

I hope this helps to clarify the situation

I know I am missing a step here, but having a brain fade moment with this.