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Record a Line of Credit or Overdraft Protection Account in QuickBooks

Recording a line of credit or overdraft protection account in QuickBooks.
Solution Description
To setup the Line of Credit account and record an overdraft, follow these steps:
  1. From the Lists menu, choose Chart of Accounts.
  2. Create an Other Current Liability account in the chart of accounts for your line of credit. (If you have not used your line of credit, the opening balance would be zero).
  3. Write a check that affects your "Line of Credit" account (and possibly create an overdraft situation).
  4. From the Banking menu, choose Make Deposits.
  5. If the Payments to Deposit window opens, click the cancel button at the bottom.
  6. In the Make Deposits window, select the bank account for the deposit.
  7. Click on the first line in the From Account column, select the Other Current Liability account that you created from the pull-down list.
  8. Enter the amount of the line of credit you used in the amount column. This will transfer money from your "Line of Credit" to your bank account.
  9. Click Save & Close.
 
To pay off your Line of Credit, follow these steps:
  1. From the Banking menu, choose Write Checks.
  2. In the Pay to the Order field, choose the financial institution that you have the line of credit through.

    Note: If applicable, change the check number to EFT (electronic funds transfer) if this was just a transfer of funds.

  3. Select the Expenses tab on the write check window.
  4. Click on the first line in the Account column, select the Other Current Liability account that you created.
  5. Enter the amount of the line of credit you are paying in the amount column.
  6. Click Save & Close.

If this solution does not resolve the issue, please review other available QuickBooks support options for additional guidance. You can also read and post messages relating to your issue on the QuickBooks Community forums.

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KB ID# HOW13332
10/22/2014 5:38:04 PM
PPRDQSSWS403 9102 Pro 2013 f28145