How do I get my line of credit to link with bank feeds?

I can guide you on how to link the line of credit with Bank Feeds, bfcozine1.

First, let's make sure we set up and track the line of credit in QuickBooks Online (QBO).

Then, connect the bank and credit card accounts (with the line of credit) to your Online account.

If you can’t find your bank on the list but still want to add the transactions, you can manually upload bank transactions from a CSV file.

Once done, pay the bank back with a debit or credit card. Just categorize the expense that comes into your bank feed.

For more details about recording LOC's payment, you can check out this article: Record a payment to your line of credit.

Feel free to go back to this post if you need anything else with tracking your line of credit. I'm here to help.

This post is not helpful as written, as it skips over proper classification for a line of credit, and the "solution" as written doesn't allow someone to properly record line of credit transactions.  

Lines of credit are Other Current Liabilities.  

They are not bank accounts, nor are they credit cards.

The key issue at hand is that QBO, as of the writing of this reply, appears to not permit a user to link a bank feed of a non-credit card current liability account to QBO.  I hope I am wrong, but I cannot find a way to do so. 

I have our line of credit accounts manually added to QBO, but I cannot find a way to link the bank feeds for either of the accounts.  

How can a line of credit bank feed be linked to QBO?

Let me share how it works, Rgstg.

Your observation is right. You're unable to link it. You can only transfer the transaction. Here's how:

1. Click Banking.
2. Go to the Banking tab.
3. Select the transaction, then click Record transfer.
4. Select the transfer account, then click Record transfer. 

I'll include the reference on how to categorize and match online bank transactions to better guide you.

If you have further questions, click the Reply button below. We're just a comment away.

1) The inability for QBO to support linked lines of credit is, simply put, not acceptable.  If QBO can support linked credit card accounts, it can support linked current liability accounts.  QBO should support linked financial accounts of ANY type.  

2) Your reply does not make any sense.  How is a transaction related to the line of credit getting into Quickbooks in the first place?  Two examples...

• A draw is taken against a line of credit, and the bank deposits the requested funds into a deposit account that is linked with the company's QBO.

• Payment is made from a line of credit to a vendor.  In this case the company does not receive any funds; rather, funds are transferred from the bank providing credit directly to a third party.  

Please provide instructions on how to properly record transactions with the two scenarios provided above.

Thanks for coming back, rgstg. 

You can transfer the funds from your LOC accounts to the other bank account that is connected to QuickBooks Online (QBO). 

Here's how:

1. Click the + New Plus button.
2. Under Other, select Transfer.
3. From the Transfer Funds From the drop-down list, choose the bank account that the funds are coming out of.
4. From the Transfer Funds To drop-down list, select the bank account the funds are being deposited into.
5. Enter the amount being transferred in the Transfer Amount field. 
6. Edit the Date.
7. Tap Save and close.

For more details about this one, check out this article: Transfer funds between accounts. 

You can also make a bank deposit to match the transaction in your bank account connected to QBO. Just follow the steps and details in this article:

• Record and make Bank Deposits in QuickBooks Online
• Categorize and match online bank transactions in QuickBooks Online

On the other hand, QBO is unable to connect a loan account through the Banking menu. For recording a payment made from a line of credit to a vendor, we enter the transactions manually.

To record a payment to your line of credit, just follow the steps in this article: https://quickbooks.intuit.com/learn-support/en-us/bank-feeds/record-a-payment-to-your-line-of-credit....

Since funds are transferred from the bank providing credit directly to a third party, it would be best to contact your accountant. They'll help you on how to best handle this one in your account. They'll also guide you with other ways on how to record the draw taken against a line of credit.

To learn more about the line of credit, refer to Set up and track a line of credit article. 

Fill me in if you need a hand with reconciling your account or any QBO related. I'll be here to help. Take care always.

All quotes are from RCV's response.

"On the other hand, QBO is unable to connect a loan account through the Banking menu. For recording a payment made from a line of credit to a vendor, we enter the transactions manually."

Payments made directly to a vendor using a line of credit cannot be recorded at all in QBO as far as I am aware.  For example:

• A purchase order is created.
• The contents of the purchase order are copied to a bill.  
• If I attempt to mark the bill as paid, I cannot select the line of credit account as the payment account.

...But I can select a credit card account as as the payment account.  Why does QBO treat credit cards and other current liability accounts differently?!  Credit cards accounts are current liability accounts.  ALL current liability accounts need to be treated THE SAME.

"To record a payment to your line of credit, just follow the steps in this article: https://quickbooks.intuit.com/learn-support/en-us/bank-feeds/record-a-payment-to-your-line-of-credit...."

Noted.  That said, the issues at hand do not pertain to making payments to LOC accounts.

"Since funds are transferred from the bank providing credit directly to a third party, it would be best to contact your accountant. They'll help you on how to best handle this one in your account. They'll also guide you with other ways on how to record the draw taken against a line of credit."

I am the accountant for my company.  The issues at hand have nothing to do with accounting; they solely pertain to issues with the QBO software.  Why should I contact an outside accountant regarding an issue with Intuit software?

I maintain that QBO's inability to process bank feeds for any type of current liability account is not acceptable.  There is no technical difference between a bank feed for a LOC account or a bank feed for a credit card account.  The fix should be simple to implement and should be available in ALL versions of QBO. Please pass the message on to your development team.

It's incredibly frustrating that Intuit continues to increase the price of QBO software when QBO is missing core financial accounting software features.

Hi there, @rgstg.

This isn't the kind of experience and service we want you to feel.

In QuickBooks, Credit Cards is the one who groups to track the charges and payments made against a company credit card. One benefit is that you can reconcile this account as you do your bank account and also download your credit card transactions directly into QuickBooks. While the Other Current Liability is the debt that is expected to be paid within one year. This grouping includes the QuickBooks-created Payroll Liabilities account and Sales Tax Payable account, in addition to other user-defined liability accounts.

Our product engineers are considering all suggestions based on the number of requests and their impacts on the user interface before they're rolled out.

I'll pass along this feature to our Product Team so they can discuss how to add this method in the future. For now, feel free to read through the Product Updates link to know what's new and coming in the system.

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day and be safe.

This is a massive oversight.  In the meantime...

Since you didn't address the issue at hand in your reply, are you telling me I can't square our company's books and/or generate accurate financial reports with QBO until the QBO Product Team chooses to fix the problem, if they ever decide to fix the problem?

Hello, @rgstg.

At this time, you can only add and sync your bank accounts in the Banking page. However, you can still track line of credit in QuickBooks Online (QBO).

You’ll have to set up a principal and expense account from your Chart of Accounts. You can out credit funds into another account by transferring funds between accounts.

For interest charges, you can add them by recording an expense transaction. See this article for more information: Enter, edit, or delete expenses in QuickBooks Online. 

You can write a check in QBO if you’re going to send the bank or creditor a paper check. Read this record a payment to your line of credit article for more information.

We've already taken down your message and pass them to our Product Development team. Our engineers make improvements in QuickBooks Online by listening to our customers' suggestions and comments. Also, you can visit the QuickBooks Blog to check for new updates and features that we have. 

Let us know if there's anything that you need. We're always here to assist. 

Unacceptable all around. I agree with the original poster. This is core functionality that the banks make easy to handle in their feeds, but QBO simply has not programmed a product that can handle it. How very disappointing. Why should I have to set up multiple accounts and perform manual processes when a single one should suffice just because your product doesn't work completely?

You have to trick it...

Set the line of credit up as Account type "Bank" and the Detail Type as Petty Cash

When you go to link the bank, it will have that new account as an option to choose from.

Link the bank account to this new account.

Then simply go back to chart of accounts and change the account type to a current liability and the Detail Type to Line of Credit.

Greg

You are a genius. Thank you so much!!

I have the same problem. I've spent hours on the phone with QBO support with no answers. They are the ones that actually sent me the link to this thread. I followed the instructions above to the letter and still was unable to link my LOC account. The funny thing is I have an existing line of credit that for several years has been linked and transactions are uploaded daily without issue. It was originally set up in my chart of accounts as a credit card. I tried doing that same thing with the new LOC to no avail. Baffling an incredibly frustrating

I am having the same issue.  Very frustrating

I have the same issue and it is impossible to record the transaction from the loc to the vendor.  I did a journal entry to record the transaction, but it does not pull the loc payment to the bill.  Quickbooks needs to get with it.  

Thank you for joining in on the thread, golf78.

If you often use your line of credit to pay your vendors, you may want to set it up as a credit card so you can use it to pay your bills. However, if you currently set it up as a liability account, like how it is normally done, you can use that account on your bills. Check out this article for your reference: Set up and track a line of credit in QuickBooks Online.

You can always reach back out if you have any other concerns. Enjoy your day!

I want to throw our hat into the ring on this issue as well.  This adds to the list of core features that an accounting program should have that Intuit is missing.

Our disappointment with QBO grows with each change that adds flash and fails to add core functionality.

This was how I was able to do it as well.  Well done.

As mentioned above, there is a workaround. I've had mine linked for years.

You set it up as a new bank account in QBO - make it a cash account.

After the account is linked, go back into QBO and change the account type / name to the correct other liabilities / Line of Credit and save.

Just pay attention to exclude transactions that are already entered in your checking account so they are not double counted.  (like bank fees)

Will you please let me know how to pay for a line of credit? I was able to do it with desktop. Write a check and done. Now I can only write checks to vendors to pay for bills. Please help. Thank you

Thanks for reaching out, Sarita. We need to set up a liability account before paying for a line of credit in QuickBooks Online (QBO). I'd be happy to provide more information and assist you in setting this up.

A line of credit is an essential form of financing in businesses. It is typically treated as a liability account in QBO. Any amount borrowed from the line of credit is seen as a debt to the lender and is recorded as such in your books.

Here's how to create a liability account:

1. Go to the Transactions menu. Select Chart of Accounts.
2. Click New and enter a name for the account.
3. From the Account type dropdown, pick Other Current Liabilities.
4. Choose Line of Credit in the Detail type or Tax Form section dropdown. 
5. Hit Save.
   
   

If you incur interest charges, set up an expense account for it.

1. On the Chart of Accounts page. Click New.
2. Enter your preferred name in the Account name field.
3. From the Account type dropdown, pick Expense
4. Select Interest Paid in the Detail type or Tax Form section dropdown, then Save.
    

When you make a payment, you can track what you pay back to your bank or creditor. Either way, split the expense between principal and interest in the category details.

If you're going to send the bank or creditor a paper check, follow these steps:

1. Click + New, then Check.
2. In the Payee field, select or enter the bank's name.
3. Pick the financial institution in the Bank Account dropdown.
4. Select the Line of Credit in the Category field. Enter the amount of principal that you want to pay.
5. Choose the Interest Paid in the Category field if necessary. Type in the amount of interest you want to pay.
6. Once done, Save and close.

That's it! Your credit line payment has now been recorded. In such cases that you're paying the bank back with a debit or credit card, check out this article on how to handle this: Manage a line of credit in QBO.

For additional reference, I'm adding these articles to learn more about bills, expenses, and checks. These resources will also help you how to manage your transactions in QBO:

• Difference between bills, checks, and expenses.
• Categorize online bank transactions.
• Match online bank transactions.

Recording your line of credit in QBO is essential for accurate financial tracking and informed decision-making for your business. Feel free to consult your accountant to help you with the steps above. I want to ensure all your concerns will be addressed. Have a good one, Sarita!