clearing an invoice

[Vicky5]

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 to do this via equity accounts, however, drop down box on MYOB for receipting only shows payment from bank account, undeposited funds account etc.

Any ideas on how I can show the invoice as paid?

Thanks

[Tracey_H]

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.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[Vicky5]

HI Tracey

thanks for this - my biggest issue is there are no funds to transfer to business so I need to show increase in equity introduced and get this to an account I can use as bank - I did set up a dummy invoice doing as you said and showing the payment to invoice from owner loan but there did not seem to be a way to increase owner equity to correspond. I am unsure if I am making sense in all of this and getting totally lost with double entry (I'm only in first stage of bookkeeping course so a bit of a novice).

How can I increase owner equity without any $ transaction.

Thanks

Vicky

[Tracey_H]

Hi @Vicky5 

My apologies for the delay in getting back to you. It's not possible to select an equity account in the Bank account field when recording transactions. However, you can the record the transaction using the director loan account and then record a general journal from the director loan account to the applicable equity account.

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.