Creating an Invoice for a loan to another company
I am consulting with a client that routinely makes loans from their business to another business. I suggested that they create an "Other Current Asset" account named "Loan to X Company" to track the amounts that are advanced to them on the loan. They should also post all payments made on the balance of the loan to this account to track the balance due correctly.
My client wants to prepare an "Invoice" to send to the debtor to let them know what their balance is. The client also wants to be able to use the Customer Center to easily view the balance due on that Customer's Account, similiarly to other Accounts Receivable. I don't know how to accomplish this without recording the transaction twice (once with the check written to the payee and again with the invoice created.) Also, if we create an Item to use for invoicing purposes, the account linked to that item will be credited, with the corresponding debit being posted against Accounts Receivable.
If we just use the "Other Current Asset" account What type of documentation can my client send to the debtor to let them know what they owe?
