"since QB doesn't have functions available to easily record an intercompany loan situation."
That isn't the discussion here. The discussion here has a Source account = credit card. Credit Card liabilty type includes the Tools for credit card charge and credit (returns) entries.
"many college-level accounting courses that teach QB, JE's are recommend"
Not if they are teaching using any of the manuals provided, such as Sleeter and Intuit manuals would have you use the Credit Card Functions. I know; I taught this for 8 years using manuals by Intuit. Sleeter Group, Paradigm, etc. However, as the subcontractor to the Business College accounting instructor, I also had to be careful and Dispute her comments about using JE in front of her students; I did so not by direct confrontation, but by pointing out, "Oh, Look; here's a Tool we are meant to use, that will do this for us." I learned to be diplomatic on the fly, in front of her class, to not insult her why "we all get to learn how this works" using QB. QB is not Accounting; it is a Program used to Do your accounting. The Program has the tools. You would not buy a Cadillac to shift it manually, like a Ferrari. You buy the Cadillac because you don't want to Manipulate it manually and you want to let the Functions work for you.
"As long as you use the correct accounts in the JE, you can make your entry accrual or cash basis."
I'm sorry, but that is incorrect for QB reporting. Try it.
"what do you think the QB functions are doing in the background when you use them? They are making JE's on your behalf "
Nope. They are making Debits and Credits with Target and Source names, because this is a Relational database. Try it yourself. Buy inventory, posting to AP, using a JE. List more than one Vendor and more than one Inventory product. Put in Quantity and Cost, each. Try using a JE to Pay payroll liabilities, in Desktop. You are able to do "accounting" but you just orphaned all of the Functions and reporting that relied on the Proper tools, such as Enter Bill and Pay Liabliity.
The Functions are part of a Program. The Names are part of the Unique Key Fields for the relational database. The Items (products and services) flow the data to the accounting. Try running a Profit report on your Sales Products, by only entering purchases and sales as JE. It just doesn't work.
"The end result is the same though on the GL and financial statements. "
Yes, you get pretty Financial reporting. Unfortunately, you just bypassed at least 85% of the program tools and functions and those reports will have no data. Examples: Sales by Customer, Purchases, product profit, Sales Taxes, inventory, etc.
If you are using Desktop, try running a Job Profitability Detail report for the customer where you bought a lot of direct services and goods for them, and charged them. Using JE = No meaningful data on that report. Just one line as No Item. For any program with inventory, use only JE, then run inventory reports.
Yes, yo ucan do Periodic Inventory management by posting to Asset and removing costs to COGS manually. That isn't how to Use QB. That is how to Do Accounting. Completely different end results. Let the program do the accounting by using the tools, and now you also are Managing Inventory = Perpetual Inventory.
