How to contra an invoice from a loan

[PaulRC]

Good afternoon,

I have a sum of money showing as having been loaned by a client to my company which is showing in my ‘loans’ nominal account as outstanding.

The client has now taken services to the value of the loan and we have invoiced them accordingly, which has increased the balances in the Debtor control account by the same sum.

My question is, how can I best record the fact that the loan is no longer outstanding and has been used to settle the outstanding invoice .

It is like using the loan to contra the invoice?

The outcome that I seek is

1. To have the client invoice showing as zero balances outstanding
2. To have the loan in my loan account shown as satisfied
3. To have my bank balance (current account) to be unaffected - we have taken no money
4. To have the debtor control account reduced by the same amount

Thanks in advance for any help

[FaradayKeynes]

You can record prepayment from client under more option> new prepayment while at client account page and once invoice generated, pay it with advance credit option

[ian_roberts]

@PaulRC

showing in my ‘loans’ nominal account

If you represent the loan as a “bank account” rather than just a plain nominal then you can simply mark the customer’s invoice(s) as paid into the loan account.

If you’ve just made it a nominal on your balance sheet then the simplest fix is to go via another dummy bank account such as drawings or director’s loan - make a manual money out transaction on that account for the relevant amount, tag it as “something not on the list” to the loan nominal. Then mark the outstanding invoice as paid into the same account to close the loop.