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Community Contributor *

Line of credit setup and bank reconciliation

I routinely have issues with the way the line of credit works in QB online. Perhaps it's just me. Here's the quick situation I have now. 

I made a payment from checking account to line of credit account. For simple math, we'll make this easy. Let's say the payment was $100. $30 was principal, and $70 was interest. When the checking account syncs, it shows $100 debit. I created an expense for $100 and put $30 in an account of Line of Credit and $70 in an account of LOC Interest. 

However, when the LOC syncs, it shows $100. BUT the balance is only going down by $30 since that's the principal. So what do I do? The LOC account in QB doesn't find the expense I entered to match up because it's only $30 and the LOC sync shows $100, which isn't accurate. 

Am I doing this wrong? I'm confused. Thanks for the help.

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Best answer 10-15-2018

Accepted Solutions
Established Community Backer ***

I noticed the same thing. I also split the debit in the c...

I noticed the same thing.

I also split the debit in the checking account, with the interest portion going to the interest expense and the rest going to the LOC liability account.

I don't think this is a QBO problem. This is how the bank sends the data to QBO. 

There is very little activity in the LOC account, so I don't need to use the bank feed (what you are calling the "sync") for the LOC.  I just ignore it.  The LOC balance is correct because of the aforementioned split entry, which correctly reduces the LOC balance.

2 Comments
Established Community Backer ***

I noticed the same thing. I also split the debit in the c...

I noticed the same thing.

I also split the debit in the checking account, with the interest portion going to the interest expense and the rest going to the LOC liability account.

I don't think this is a QBO problem. This is how the bank sends the data to QBO. 

There is very little activity in the LOC account, so I don't need to use the bank feed (what you are calling the "sync") for the LOC.  I just ignore it.  The LOC balance is correct because of the aforementioned split entry, which correctly reduces the LOC balance.

Community Contributor *

Makes sense. I'll just either ignore the bank sync or sto...

Makes sense. I'll just either ignore the bank sync or stop syncing all together. Then the balance will match. Thanks.