Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowHi there, bobbi-williams52.
I'l be glad to help you with setting up a Line of Credit in QuickBooks Online. If you wish to track a line of credit, you need to set up two accounts. One for the principal and the other is for an expense account. Let me show you how:
To set up for a principal account:
To set up an expense account for the interest:
For more information, please refer to this article: Set up and track a line of credit
Using the above steps, you're now able to set up the line of credit account to show the payment that will decrease the account.
Please tag me directly if you need anything else.
Thanks a bunch for your quick response. Let me clarify my question. I set up the line of credit as a liability account already and linked it to the LOC account at my bank so that it will auto feed the account. The issue I am having is that the transactions are feeding into Quickbooks with incorrect debits/credits. As payments are made Quickbooks is increasing the account balance as if it's an asset account instead of decreasing the liability. As money is drawn from the line of credit it's decreasing the balance instead of increasing the liability. Does this mean I can't use the account link to auto-transfer the activity to Quickbooks and instead perform these entries manually?
Thanks for your quick response. Let me clarify my question. I have already set up the liability account and linked my line of credit account from my bank to Quickbooks. As the transactions feed into Quickbooks the debits/credits are backward. Payments are reflected as an increase to the account as if it's an asset account and advances are reflected as a decrease to the account instead of increasing the liability. So now my balance between Quickbooks and the line of credit account doesn't agree. Does this mean I can't link the account and instead I need to perform these transactions manually?
Hi there, @RealBuilders.
Yes, you'll need to enter the transactions manually. QuickBooks is unable to connect a loan account through the Banking menu. I'll show you how to enter the transactions in QuickBooks.
Here's how to record repayment of the Line of Credit (LOC) or payment of interest charges, with screenshot for additional reference:
To pay bills where funds have gone directly from the LOC to the vendor:
There are series of transactions you can do with your LOC, please check out this article: Set up and track a line of credit.
For future reference with reconciling your account, I can see this article to be essential in this task: Learn the reconcile workflow in QuickBooks.
I'll be here ready to help if you need anything else with QuickBooks. Keep safe.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.