How To Register A Line Of Credit In Quickbooks
From the account type dropdown menu select other current liabilities.
How to register a line of credit in quickbooks. Select the customer you want to apply the credit to by typing in the customer name as it appears on the invoice. Select the account you are reconciling from the dropdown at accountand click reconcile now. From the detail type dropdown menu select line of credit. How to setup a line of credit in quickbooks duration. Once established a business line of credit can be used whenever a business is in need of the funds as long as the reason for the lending request is within the scope of the original lending agreement.
Enter a name and then select save and close. Set up an expense account for the interest. To book the loan interest first make the payment in quickbooks to the loan. To do this go to l ists f ixed asset item list. On the second line under name click the account drop down arrow and select the line of credit account line of credit in this example under the credit column enter the amount you paid the vendor 10 000 in this example enter a memo such as paid from line of credit click save and close.
Open the write check window ctrl w enter the bank name date and amount. Quickbooks displays the fixed asset item list window see figure 1. Proceed to the account register below. From here select new at which point you can choose current liabilities form the account type menu followed by line of credit in the detail type field. While logged in to quickbooks online click the settings button on the home screen and choose chart of accounts.
Set the account type as other current liabilities and detail type as line of credit. Quickbooks will launch a credit memo wizard. The detail type as interest paid. Set account type as expenses. Candus kampfer 17 510 views.
How to reconcile bank and credit card accounts in quickbooks online go to the gear icon at top right of screen your company name and click reconcileunder tools. From your quickbooks home screen choose customers from the menu and select create credit memo. This tutorial shows how to create a line of credit option for your loan type templates. Go back to your chart of accounts to create a new account. If you need to track a line of credit you need to set up two accounts.