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paulapallo
October 30, 2018
Solved

Account Type Changes

  • October 30, 2018
  • 2 replies
  • 1 view

I didn't set up the chart of accounts.  I have a line of credit that was entered as a bank when it should have been entered as a long-term liability.  When I try to change it, i get this following error.

 

"This account is being used on a Check, Deposit, Payment or other transaction where an account of type 'Cash' or 'Undeposited Funds' is required. You must locate and change those transactions to use a different Cash account before you can change the Account Type of this account. To find the transactions using an Account, run an Account QuickReport, or use the Account Register."

 

What?  what should I be looking for.  Payment are made to the line of credit from the operating account, from the owners personal equity, etc.  How do I track down the offending account and get this properly assigned?

    Best answer by Rustler

    You can use a long term liability account for a line of credit (LOC), but I prefer to use a credit card type account for that. It just makes it easier to show the withdrawal against the LOC and payments and interest, not to mention reconciling the account with monthly statements. And liability accounts do not always show as a choice for transactions. But which ever you choose ...


    Create the new account for the LOC
    run a report on the old LOC account
    click on each transaction and edit it, change the account at the top to the new LOC account and save

    then make the old LOC account inactive

    2 replies

    C
    Charies_M
    Level 9
    October 31, 2018

    Hello there, @paulapallo.

     

    I can help you change your line of credit to long-term liability in QuickBoks Online.

     

    The error message you're getting typically occurs if you have transactions attached to the account that you're trying to change. To be able to change account to long term liability, you'll need to delete the opening balance or other transactions associated to it.

     

    Once done, you can now make changes to the accounts in the Chart of Accounts. I'd be happy to show you how:

    1. Go to Accounting tab.
    2. Select Chart of Accounts.
    3. Choose an account you'll want to change.
    4. Click View register and choose Edit.

    Please reach out to me if you have more questions about this. I'd be more than happy to answer them for you.

    9
    9875
    May 28, 2020

    I created a new expense account (6410-00). It shows up around account 4400-00. How do I bring it down so it's located under account 6400-00.  Thanks. HR

    R
    Rasa-LilaMQuickBooks Team
    QuickBooks Team
    May 28, 2020

    Thanks for joining on this thread, @9875.


    I’m here to help make sure expense account 6410-00 is located under the 6400-00 account. You can change the order in just a couple of minutes.


    Here’s how:

     

    1. Hit the Accounting menu on the left panel to choose Chart of Accounts.
    2. These actions will open a page that lists all accounts added to your company.
    3. Go to the Number column and then click on it to change the order.

    I've attached a screenshot on how the account number's arrangement looks like after following these steps.

    For future reference, here’s an article that can help keep your accounts organized and easy to find. It also contains links that will guide you on how to hide an account: Use account numbers in your chart of accounts.

     

    Stay in touch if you have any clarifications or other concerns. I'm more than happy to answer them for you. Have a great rest of the day.

    Rustler
    RustlerAnswer
    Level 15
    October 31, 2018

    You can use a long term liability account for a line of credit (LOC), but I prefer to use a credit card type account for that. It just makes it easier to show the withdrawal against the LOC and payments and interest, not to mention reconciling the account with monthly statements. And liability accounts do not always show as a choice for transactions. But which ever you choose ...


    Create the new account for the LOC
    run a report on the old LOC account
    click on each transaction and edit it, change the account at the top to the new LOC account and save

    then make the old LOC account inactive

      john-pero
      john-pero
      Level 12
      October 31, 2018

      I agree, create the new correct account, move transactions, make old account inactive if in QBO or delete in Desktop. Even when an account has never had transactions QBO only allows you to make it Inactive, not deleted

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