Recording an advance for an overdraft line of credit and repayment

You're doing right, Cherie4SA.  

I'm here to ensure you're able to record an advance for an overdraft.  You can record the overdraft as a regular expense transaction and enter the payment as a deposit.  

 To record and manage your expense transaction, you can visit this article for a detailed instructions: Enter and manage expenses in QuickBooks Online. 

Additionally, You can visit this guide on how to make a payment to your line of credit in QBO: Track what you pay back. 

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!

The problem is the expense is entered as paid by debit/credit card and then the advance was deposited to cover the shortage. Is there a way to enter it like a loan deposit and then a loan repayment and how do I handle that? Do I set it up like a credit card? 

The problem is the expense is recorded as paid by debit/credit card and then the advance is deposited to cover the shortage. Is there a way to record the advance as a loan advance and repayment? Do I set it up like a credit card? I'm new to QB so I'm not sure how to accomplish this. 

Hello @Cherie4SA,

You can create a new liability account to track the loan and corresponding payment in QuickBooks Online. Let me show you how.

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Under Account Type, select the appropriate category depending on how long you're planning to pay the loan in question:
   • Select Long Term Liabilities - for more than 1 or 2 fiscal year
   • Select Other Current Liabilities - if paid within the fiscal year
5. On the Detail Type menu, select Notes or Loan Payable.
6. Enter the name of your new loan account.
7. Below the When do you want to start tracking your finances from this account in QuickBooks? section, select when have you started tracking the loan in question.
8. Type in the exact account balance depending on the date you've chosen.
9. Click Save and Close.

In the same manner, here's an article you can read for the steps depending on how you wish to track the repayment: How to record a loan and a repayment in QuickBooks Online?

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Know where you stand financially.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.