Use this type to record an expense where one person paid for the entire transaction on behalf of someone else, and the person who paid does not have any personal expense in the transaction.

Use this type to record an expense when the person(s) paying have a partial share in the expense. E.g.: You go to a restaurant with a group of friends, and pay the bill for everyone.

Use this type when money is loaned or borrowed between two people. The money is not used to pay for any expense, it just changes hands from one person to another. E.g.: Your friend is running low on cash and borrows $100 from you.

Use this type to record a payment to settle up an IOU balance. E.g: Your friend owes you $10 and paid it back via Paypal.