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Bill Paid by a Friend then reimbursed

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  • Bill Paid by a Friend then reimbursed

    I entered a bill submitted by a Vendor on my Vendor list. I had a friend helping organize future work by this vendor, and she made sure his outstanding bills were paid using her own money, not company money (for expediency).

    Now I need to pay her back and also account for the fact that the bills owed to the Vendor were paid. When I go to Pay Bills dialog it will only allow a payment for those bills to be a check written to the Vendor, but the check really needs to go to my friend. I can write check to my friend from the register but how do I tie it to the outstanding bills, so the system recognizes the bills from that Vendor were paid?


  • #2
    Step #1 - Create a new "bank" type account called clearing. Step #2-Create a Current Liability Account for Short Term Loans. Step #3 - Pay vendor's bill using the Clearing account for payment. That will show a minus amount in this account (credit balance) Step #4 - Make a journal entry from the Clearing Acct. (debit) and post to the Short Term Loan account. (credit. That will leave the balance in the clearing account at zero, and show an amount owed in the short term loan account. When you are ready to pay your friend, just write a check and post it to the short term loan account. If you pay the whole amount that will leave the account at zero.
    Suzanne M. - "Better Books"
    Certified Quickbooks ProAdvisor in Pro.,Prem. & Enterprise /


    • #3
      reimburse friend

      I was able to do this same thing in one step without having to create new accounts.
      Go to write checks; write a check to your friend for the amount paid and apply it to accounts payable. In the right column which states "customer:job" enter the vendor name. Print check for your friend.
      Then go to pay bills and click on the vendor and the credit (from the check you just wrote) will be there and you can apply it to the vendor bill and all will be cleared.
      I am using QBP 2004 and it works with that version.