Bank Transaction and Line of Credit transaction

should  the Journal list be in my case where the bank download.  or  creat one seprately. I am a different person from the orginal person asking the quiestion.

with that said  I too  used the same bank with my line of credit (overdraft line).  so does it sense to make the overdraft that comes the bank download and make it the Journal?

Hi there, @razor518.

Please allow me to join the thread and help share a little more information about handling bank transaction and line of credit transaction.

Yes, you can create a Journal Entry, just ensure that the amount posted by the bank is the same amount in the Journal Entry created. Also, please make sure that the dates are correct and you've debited the interest expense correctly.

To learn more about creating a journal entry in QuickBooks Online (QBO), you may check this article: Create a journal entry.

Please don't hesitate to add a comment below if you have any other banking questions, I'll be always here to help you. Have a great day ahead!

I need help please.

I have a line of credit = 150,000.  The bank account shows i have 150,000 to take from.  The problem I am having:

When i connect the bank feed as an "other current liability" the bank balance shows 150,000 and the quickbooks balance shows -150,000.

If i switch it to a "Bank Account" type - the bank balance shows - 150,000 and the QB balance shows 150,000.

Why type of account should this be listed as?

Thank you!

Hi @GinaBCBO,

You’ll need to edit the Account type of your Line of Credit account. Let me discuss this further so you can successfully connect to your bank feeds.

In QuickBooks, you can’t connect a liability account to your bank feeds. It’s possible that you’ve set up your line of credit account as a liability.

To correct this, you’ll need to change the Account Type of your Line of Credit. Here’s how:

1. Hover your mouse on Accounting from the left panel.
2. Choose Chart of Accounts.
3. Locate the Line of Credit account.
4. Select Edit from the Action column.
5. Choose Credit Card from the Account Type and Detail Type drop-down.
6. Click on Save and Close.

Once done, you can reconnect your account for bank feeds.

You can refer to this article to know more about setting up and tracking your line of credit.

Please let me know if you have any other questions or concerns. I’ll only be a post away.

@Alessandra_B 

Thank you for your reply.

I am confused.  I have a few other current liability accounts that are connected to bank feeds and they work perfectly fine.  The difference with this one is that the bank made the entire 150,000 available, where as the other ones when you take from it, it grows.

Currently the bank gave him 150,000 and they took $450.00 from it making the balance $149,550.00.

When I change this to a credit card account the bank balance says +149,550.00 and the quickbooks balance says -149,550.00.  I cant seem to get them to match.

Please help!

Thank you for getting back to me, @GinaBCBO.

I can explain this further to help you with your Line of Credit account.

Setting up your Line of Credit account as a Credit Card allows you to make purchases using it. It also allows you to add your transactions is QuickBooks to match them.

In addition, the negative balance denotes an overpayment with your bank, while a positive amount denotes your payables.

Lastly, connecting your Other Current Liabilities account won't allow you to add your transactions in QuickBooks.

Please let me know if you have any other questions or concerns.

I have the same "confusion" with these types of accounts. According to my tax accountant, liability account should always show as a negative. But to get QBO to report everything correctly I had to change my LOC to show as a CC.  

I am still having trouble though with reconciling as it is still linked to my checking account as its the same bank and the transfers are creating dbl entries and messing with my reconciliations.

Hello there, @TPASP.

Allow me to sort this out to ensure you'll be able to record them correctly. In QuickBooks Online, it's how the line of credit works when you perform the process.

It'll depend on how the bank sends the data to QBO without creating double entries into the system. Other users set up LOC as a credit card type account.

Like most the credit cards, interest is mostly charged per billing cycle, so when billed, you can reconcile and on that screen there's a block to enter interest charged, recon and then make the payment.

For some reference, I've attached some articles that I suggest you visit to know more about how to set up, track a line of credit, and record a payment manually:

• Set up and track a line of credit.

• Record a payment to your line of credit.

If you have additional questions or concerns while working in QBO, leave a comment below. I’ll be happy to help you out.