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teverhart26
February 21, 2019
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Line of Credit

  • February 21, 2019
  • 1 reply
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Can anyone tell me what the ramifications to changing a line of credit account set up only in the COA as an "other liability"? It should have been set up as a "credit card" so that interest, payments, etc could be tracked, but unfortunately it was not.

Best answer by Mark_R

Thanks for getting back to us, @teverhart26.

 

I'd be glad to share a few insight about the ramifications when changing the account.

 

After changing the account, the balance from your line of credit will be transferred to your Credit Card account but it will still the same effect in your Chart of Accounts. Also, they will have different positioning in your Balance Sheet report.

 

Fill me in if you have further questions. I'll be around if you need any help.

1 reply

A
Alessandra_B
February 21, 2019

Hi @teverhart26,

 

Allow me to provide you with some information about your line of credit account and help you edit it.

 

Setting up a line of credit account in QuickBooks allows you to record interest and pay your bills. 

 

When you set up your line of credit as “other liabilities” you won’t be able to pay your liabilities or payables.

 

On the bright side, you can still edit the set up of your account. Let me show you how:

  1. On the left panel, hover your mouse on Accounting, and choose Chart of Accounts.
  2. Select the Line of Credit account.
  3. Under the View Register drop-down, choose Edit.
  4. Choose Credit Card under the Account Type drop-down.
  5. Click on Save and Close.

Feel free to read this article for more information: How to Track a Line of Credit?

 

Fill me in if you have any other questions. I’ll be here to help you. Have a good day!

T
teverhart26Author
February 21, 2019

Hi, thanks! Yes, I know I can edit the COA account. 

 

Do you know what ramifications there are in changing the account now?  It has been set up for a while.  I know I will probably have to go back at least a year to enter the interest/finance charges associated to get an accurate picture of the account.

 

Any insight would be greatly appreciated!

Thanks!

M
Mark_RAnswer
February 21, 2019

Thanks for getting back to us, @teverhart26.

 

I'd be glad to share a few insight about the ramifications when changing the account.

 

After changing the account, the balance from your line of credit will be transferred to your Credit Card account but it will still the same effect in your Chart of Accounts. Also, they will have different positioning in your Balance Sheet report.

 

Fill me in if you have further questions. I'll be around if you need any help.

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