QB Issue Resolution:

“JE (DR note receivable; CR cash) for $5k.”

The first thing to do is Stop Using JE like that. You hardly make JE in QB and not when Names or Banking are involved.

You “write a check” to the Vendor Name and list the Loan account as the Expenses tab entry = Other Current Asset. That is the Payout.

“For the first month I deducted the first payment on the loan from their regular monthly contract amount”

Which means Barter.

“and wired the net amount to them (instead of having them wire me the loan amount back).

Now I am confused about how to make the journal entry.”

There is no JE.

Make a Bank account and name it Barter.

Use it to “Deposit” the amount they owe you to the Barter Bank, for this payment cycle and the “from” account is the Other Current Asset account. Now your Barter Bank has funds. Use this for Pay Bills and Pay this partial amount from Barter Bank against the Gross Bill for the total you owe.

Now use Pay Bills again, and pay the remaining amount for the Real Checking account, for the rest of what you owe them.

Now you have Gross Expense and Loan Repayment and for this one date, the Barter Bank is supposed to end at 0. That’s how you know you did it right.

“Now if I have to create a JE for the note receivable with a credit to note receivable for the loan payment what do I debit because we didn’t receive cash-I just didn’t pay the person their full contract fee for the month.”
Stop using JE.
Use real transactions with this person’s Name on the Check for payment, and capturing Gross Expense, and everything is offset properly without JE.

Resolution for Issue 'If I deducted the amount of a loan payment from a contract fee how do I record the reduction in the note receivable if no cash was received?' available: Yes (Solved).
Source: Intuit Community forum.

If I deducted the amount of a loan payment from a contract fee how do I record the reduction in the note receivable if no cash was received?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Barter Bank
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!

Error Recovery for Barter Bank [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.

Get 50% off Quickbooks Online

Click Here for 50% off!

Additional Support Options: