Transfer from Loan Account to clear a supplier invoice

Question

Hello,&nbsp;We have two companies, parent company (LM) uses a different accounting program, second company (LH) uses MYOB.&nbsp;LH is to part pay two supplier invoices to LM for the purchase of equipment.&nbsp; The balance of these invoices is being funded by a loan, however loan funds are being transferred to LM.&nbsp;&nbsp;I have created two loan accounts in LH to be able to capture the loan balances and record transactions.&nbsp;I am comfortable with the part payment of invoices but how can I record the transaction that captures the loan balance and clear the balance of the invoices outstanding to LM?&nbsp; Can I change the loan type to credit card and use a spend money transaction from the loan account to the supplier?&nbsp; Does this clear the balance outstanding on the supplier invoice?&nbsp;Thanks for your helpDannielle

earl_hd · Answer

Hi dannielle24,In this type of scenario, we recommend reaching out to an accountant for an accurate solution. However, to give you an idea, changing the loan type to a credit card is not necessary. Instead, correctly record the loan transactions using a standard loan account. You can visit this help page for more information:Receiving paymentsLoans and repaymentsRegards,Earl

dannielle24 · Answer

Hi Earl,&nbsp;Thanks for your reply.&nbsp;Sorry, I might not have made that very clear.&nbsp;The funds from the loan are being directly deposited into the parent company, not in the company that I need to create a loan account for so when I do the receive money transaction, I cannot select the loan account it only gives me the option to select a bank account or credit card.&nbsp;&nbsp;&nbsp;For example:The supplier invoice from the parent company to the secondary company is $450,000.The loan funds of $350,000 are being directly deposited into the parent company's account (no transaction takes place between the parent and the secondary company).The secondary company needs to pay the balance of $100,000 to the parent company.&nbsp;To clear the supplier invoice and record the loan, I thought I might be able to credit the loan account for $350,000 and transfer that balance to the outstanding invoice.&nbsp;Thanks againDannielle&nbsp;&nbsp;&nbsp;

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Transfer from Loan Account to clear a supplier invoice

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