qbteachmt
Level 15
In QB, whether you used Banking menu > Write Check, Banking menu > Transfer, or enter into the register view (creating a CHK), the "expense" detail is the Equity account for Shareholder Distributions. That's why it is not seen on the P&L, is not an expense, and does not affect profit. It is part of Cash Flow. I teach this as the difference between Expense and Expenditure. Taking a distribution is not part of the business activities; nothing was purchased or paid off with that money. It's just gone 🙂
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