QB Issue Resolution:

To track a line of credit (LOC) extended to your business, create a liability account with an opening balance of zero in your Chart of Accounts.

Choose Gear Icon > Chart of Accounts.
Click New.
Click Other current liability for the account type.
Click Line of Credit, for the detail type.
Enter the appropriate information. Remember to leave the account balance blank.
Click Finish.

To record the LOC extended to your company:

Choose Plus Sign Icon > Bank Deposit.
Ensure the proper Deposit to account is selected.
Select the line of credit account just created from the Account drop-down arrow.
Enter the Amount deposited into your bank account.
Click Save.

To record interest charges applied to the LOC by your financial institution:

Choose Transactions > Registers.
Select the Account register type and the LOC name.
Click Go to register.
Enter the date of the interest charge and the financial institution name where the line of credit is held as the Payee.
Enter the interest charge in the Increase column.
Choose your interest expense account from the Account drop-down arrow.
Click Save.

To record a repayment of the LOC and/or payment of interest charges:

Choose Plus Sign Icon > Check.
Click the Bank Account drop-down arrow and choose the bank account you want to make payment from.
In the Pay to the Order of field, choose the financial institution where the line of credit is held.
Enter the amount being paid and a memo if you’d like.
Under Itemize by Account, click the drop-down arrow and choose the line of credit account.
Click Save.

To enter a payment that has been made directly from the LOC to a vendor, where no bills have been entered:

Choose Transactions > Registers.
Select the Account register type and the LOC name.
Click Go to register.
Enter the date of the transaction and the vendor as the Payee.
Enter the amount you paid the vendor in the Increase column.
Choose your expense account from the Account drop-down arrow.
Enter a memo if you want, then click Save.

To pay bills where funds have gone directly from the line of credit to the vendor:

Choose Plus Sign Icon > Journal Entry. If you don’t see this, click “Show More”.
Enter the date.
On the first line, click the Account drop-down arrow and select Accounts Payable.
Under the Debit column, enter the amount you paid the vendor.
Enter a memo such as “Paid from line of credit.”
Under Name, click the drop-down arrow and select the vendor you paid.
On the second line, click the Account drop-down arrow and select the line of credit account.
Under the Credit column, enter the amount you paid the vendor (this should pre-fill).
Enter a memo such as “Paid from line of credit.”
Click Save

Now you need to link the bill payment to the vendor credit:

Choose Plus Sign Icon > Check.
Under Pay to the Order of, select the vendor name.
The screen will refresh and you’ll see a matching amount under Credits and Bill Payment Information. Click the checkboxes so the amounts match.
Leave the amount blank.
Click Save.

To enter a credit limit:

QuickBooks Online doesn’t have a specific field to enter the approved credit limit. Either enter the limit on the description field of the LOC account, or include the limit in the account name. (For example, “Line of Credit from Bank – 1000.”)

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Details
Answer ID 6483
Products QuickBooks Online Simple Start (H)
QuickBooks Online Essentials (H)
QuickBooks Online Plus (H)
Categories Using This Product
Date Created 05/20/2014 11:00 AM
Date Updated 05/20/2014 11:00 AM
Allow Crawling? Yes

Resolution for Issue 'Track a line of credit.' available: Yes (Solved).
Source: Intuit Community forum.

Track a line of credit.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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