A Quickbooks client asked: A director in our community organization has $500.00 due to him from a loan he made to the organization. He wants to use this to prepay his monthly dues. How should this be handled using Quickbooks?
First, you should prepare a journal entry to debit accounts payable and credit membership dues. If you are using accrual accounting and want to use this to pay his dues each month, you will need to prepare a separate journal entry for each month being credited.
The process is below:
* Select Company > Make General Journal Entries
* Select Accounts Payable > Enter a debit of %500
* Select Membership Dues > Enter a credit of $500
* Make sure the director is setup as Vendor
* Click Save and Close
Once the journal entries are entered:
* Select Vendor Center > Pay Bills
* Select the bill > Set Credits to clear A/P