clearing an invoice
My client paid her invoice but deposited funds into my personal account. I cannot transfer the funds to the business at this time but I need to show the invoice as paid. I figure there must be a way...
Forum Discussion
Hi Vicky5
Thanks for your post. One way to handle this is to create a Director loan type account and make sure the Account Type is Bank or Credit Card. When recording the payment select the Director loan account in the Bank account field.
If you transfer those funds to the business bank account, record a Transfer money transaction with the From account as the business bank account and the To account as the Director Loan account.
When creating that account a Liability account is money owed by the business, an asset account is money owed to the business. If you're not sure I would recommend speaking to your accountant.
Please let me know if you need further help.
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