I'm happy to see you here on the Community page, @user70999. To track a line of credit in QuickBooks Online (QBO), you have to set up two accounts for principal and an expense account for interest. To set up an account for the principle: Select Chart of Accounts from the Gear icon.On the Chart of Accounts page, tap on New.From the Account Type drop-down menu, select Other Current Liabilities.Choose Line of Credit from the Detail Type drop-down.Add the name of the account.Hit on Save and close.To set up an expense account for interest: Go to the Gear icon, then Chart of Accounts.Choose New.Select Expenses from the Account Type and Interest Paid from the Detail Type.(Optional) Change the account name.Select Save and Close.Once completed, you can now record your line of credit. To achieve the process seamlessly, you can check this article for your reference: Set up and track a line of credit. Drop a comment below if you have any other questions. I'm always here available to help. Have a great day ahead!

Question

How do I add a line of credit specifically for a supplier that is giving me an account with them? I need to add bills and payments at times.

Forum|Forum|6 years ago
December 13, 2019
1 reply
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QuickBooks Online

Angelyn_T

Moderator

I'm happy to see you here on the Community page, @user70999.

To track a line of credit in QuickBooks Online (QBO), you have to set up two accounts for principal and an expense account for interest.

To set up an account for the principle:

Select Chart of Accounts from the Gear icon.
On the Chart of Accounts page, tap on New.
From the Account Type drop-down menu, select Other Current Liabilities.
Choose Line of Credit from the Detail Type drop-down.
Add the name of the account.
Hit on Save and close.

To set up an expense account for interest:

Go to the Gear icon, then Chart of Accounts.
Choose New.
Select Expenses from the Account Type and Interest Paid from the Detail Type.
(Optional) Change the account name.
Select Save and Close.

Once completed, you can now record your line of credit. To achieve the process seamlessly, you can check this article for your reference: Set up and track a line of credit.

Drop a comment below if you have any other questions. I'm always here available to help. Have a great day ahead!

S

stockmgr

OTHER CURRENT LIABILITIES does not show as an option when I choose the ACCOUNT TYPE drop down. Can I add it?

K

Kevin_C

Moderator

Thanks for joining this thread, @stockmgr. I'll share some information about the account and detail types in QuickBooks Online (QBO).

You can select the Other current liabilities under the Detail Type of an account. The detail types provide more details on what you can track with each account type. They make it simple to set up accounts corresponding to the many transactions you input into QuickBooks.

On the other hand, if you want to track your line of credit and proceed to set up a liability account for the principle, follow these steps:

Go to the Gear icon, then select Chart of Accounts.
Click the New button.
From the Account Type dropdown menu, choose Current Liabilities.
Choose Line of Credit from the Detail Type dropdown.
Change the account name if you want.
Select Save and close.

For the complete process of tracking a line of credit in QBO, please refer to this article: Set up and track a line of credit in QuickBooks Online.

Don't hesitate to visit this thread again if you have additional questions about handling accounts in QBO. I'll get back to help and ensure you're taken care of. Have a good one!

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