Savance Enterprise Support

Sometimes you need to write a check against an equity ledger for a partner distribution or draw for example.  However, when you write a check, you can only pick from expense accounts/ledgers.  In order to have the check go against the equity account instead, you need to first write the check against an expense holding account/ledger and then do a journal entry to have it hit the desired equity ledger.

Step 1 - Create the Expense Holding Ledger.  If it doesn't exist already, create an expense holding ledger and name it something like "Equity Holding Expense".

Step 2 - Write a check against this holding expense.

Step 3 - Make a Journal Entry to move the exact amount from the Expense Ledger to the desired Equity Ledger.

Step 4 - Verify Accuracy.  Verify that the Holding Expense Account is 0.  Verify that the bank ledger and the equity account both went down by the exact amount of the check.