My client has an account with Lowe's. He used his contractor account to pay for a personal expense. I normally post these charges as bills, and pay them with the business checking when the statement comes, marking them as paid at that time. My client had me deduct the cost of these expenses from his paycheck to reimburse the business for them. The Lowe's bill is not due yet. How can I post all this accurately?
I realize with an expense that's paid for with a credit card or bank account, I can create an expense for the charge, then pay it, reimbursing the company. But I don't know how to pay a bill like this because, later on, I will need to pay the bill with a business check when the statement comes. So, I can't pay it the bill beforehand with his Owner's Draw/paycheck and pay the same bill later when I write a check out to Lowe's.
