To pay a vendor using an owner's personal funds

Use this procedure only if an owner has made a purchase on behalf of the company and used personal funds to pay for it.

1. Enter the purchase order for the vendor as you usually do. (To buy items from a vendor or To buy services from a vendor)



2. Create a vendor debit to pay for the purchase, that is to close it. To do this, use the procedure To create a vendor debit, but make one important change:

In step 5, enter your Owner's Equity account (or Owner's Equity/Investment account) in the Account field instead of the account suggested in the procedure.

This transaction will credit (increase) the Owner's Equity account (or Owner's Equity/Investment account).

3. Apply the debit. [To apply a vendor debit (Purchases Register)]