Record a QuickBooks Line of Credit loan in QuickBooks Online

I can't imagine the hurdle that you've been through in recording a QuickBooks Line of Credit loan in QuickBooks Online, @rb49. I'm here to provide assistance and get your transactions recorded.

To make the customer payments be available on the undeposited funds, we'll have to record its payments first by following the steps below:

1. Go to the + New icon and select Received Payment.
2. In the Customer dropdown, select the name of the customer who made the payment.
3. Choose a Payment Method, and select the Deposit to account where you put the money into.
4. Select the invoice you're recording the payment for in the Outstanding Transactions section.
5. Enter additional information such as the Reference no. and Memo if necessary. Then, click Save and close.

After you record the payment, this will temporarily be posted to the undeposited funds. With that, you can continue clearing the payment from the said account and offset this with the journal entry you previously created. I'll show you how:

1. Go back to the + New icon and select Bank Deposit.
2. Select the Bank in the Account dropdown, and the Date when the payment was received.
3. Mark the box for the associated payment, locate the Journal Entry for the same amount, and check the box. The deposit should show $0.00. Then, select Save and Close.

Let me know if you require further assistance in managing your QuickBooks transactions. The Community always has your back. Stay safe!

this does not tell how to record a line of credit into quickbooks online

Hello there, tomrj60. I'm here to clarify some things and to share a solution based on your concerns. 

Before we begin, please understand that recording a credit loan and a line of credit are two different processes. When recording a QuickBooks Line of Credit loan, you should wait until the invoice has been funded before recording it. This way, you can accurately track your liabilities and expenses in QuickBooks. To record it, you can use the steps provided above. 

However, if you need to record and manage your line of credit, you can follow the steps below:

Step 1: Create an account for Line of Credit and Interest Paid within your Chart of Accounts. 

1. Go to the Gear icon located at the upper right corner and choose Chart of Accounts. 
2. Press the New option.
3. Fill out the necessary details, such as the Save account under dropdown, Tax form section dropdown, and Account name field.
4. Once done, press Save. 

For step 2, you can follow the steps in this article and scroll down until you see the Pay with a paper check and Pay with a debit credit card: Manage a line of credit in QuickBooks Online. 

It's also best to seek advice from your accountant whenever you find any confusion when setting up your account in your Chart of Accounts.

You can also connect your bank and credit card accounts to QuickBooks Online so that your transactions will automatically download. 

Feel free to notify us whenever you need some assistance with any QuickBooks-related concerns. We still have your back. 

Rose, this approach of adding a deposit entry does not make sense to me. The balance of the bank account receiving these payments is already too high because of double-counting these deposits (LOC deposit and client payment). I need to make an entry which reduces it, not increases it. Rick

Let's ensure your bank account in QuickBooks has an accurate balance, rb49.

If you're still in the process of recording a line of credit, you can refer to my colleagues' recommendations above. For further clarification, I suggest consulting an accountant regarding whether an account needs an expense transaction or a journal entry to offset the amount from the bank account. 

If you want to make an entry to reduce the balance of your QuickBooks bank accounts to match your bank statement, you can either create an expense or a journal entry. Here's how to create an expense:

1. Navigate to the +New button.
2. Select Expense. 
3. Enter the necessary fields and make sure to affect the desired bank account.
4. Click Save and close.

You can also refer to this article to learn how to record journal entries in QuickBooks: Create journal entries.

However, if you were referring to something else, I still recommend consulting an accountant to ensure your business has accurate accounting. If you find any discrepancies in your accounts, they can provide clarification on recording your transactions properly and guide you on the next steps you can take to ensure your books are balanced. If you don't have one, you can use our accountant tool to locate a nearby professional.

For future reference, here's a guide on ensuring your accounts in QuickBooks match your real-life ones: Learn the reconcile workflow in QuickBooks.

Please come back to this post if you have any other concerns about recording your transactions in QuickBooks. I'll be around to address them, rb49.