Yes, that makes a huge difference. In your original question you didn't say that the LLC has elected to be treated as an S corp. So it is not disregarded. It is an entity distinct from you personally.
But you can't just "pull cash" from an S corp. The S corp has to pay you a reasonable salary for the work that you do. Have you been doing that? If not, I urge you to consult a tax expert to make sure that your S corp is properly meeting all of its tax obligations.
Your original question was whether the S corp has to give you a 1099 for the materials that you sell to it. The answer to that question is still no, because a 1099-NEC is issued for payments for services, not for goods. But the S corp does have to give you a W-2 for the salary that it pays you.
Your questions now seem to be about what accounts to credit or debit when you make transactions with your S corp. Those are accounting questions, not tax questions. I'm not an accountant, and this is a tax forum, not an accounting forum. Maybe someone else who knows more about accounting will answer. Otherwise I again suggest that you consult a local accountant.
