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Old 08-31-2015, 11:15 AM
CindyMatteson CindyMatteson is offline
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Location: Oswego, New York
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Question Setup and Reconciling a Term loan & Line of Credit

QUICKBOOKS: PREMIER PROFESSIONAL SERVICES EDITION 2008

When I first took on the position of Office Manager, I had no knowledge of how to run an office or how to navigate my way around QB. I have come a long way since then with the exception of one area.

We had a Line of Credit that was already set up and I was having no problems doing the reconciliation as I had been taught to do. Until... we had an increase to the available limit of the LOC and then advanced to a 3rd party. I had asked our CPA for an entire year if he could help me with how to input those transactions so that I could continue to reconcile the LOC. That never happened and the LOC has since been paid off.

Now, I am faced with a new dilemma that our CPA still has not had time to help me with. We have a new LOC as well as a new term loan. Months have gone by and I have no idea if I set up the new loan and loc correctly and I have not reconciled them at all.

My managing attorney likes to be able to quickly look at our account balances on the home screen and be able to see what our available balance is to the loc, I have not been able to do this for her.

If anyone can provide me with instructions as to how I should have set them up as a vendor (that's how the other ones were) and then how to reconcile them, I would be forever grateful.
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Old 09-01-2015, 06:25 AM
Rustler Rustler is offline
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We have a new LOC as well as a new term loan.

Loan: create a liability account, short term if it will be paid off in less than one year. Open the loan account register and make a new entry as an increase for the amount of the loan, and use the bank account you deposited the funds to as the account. Then you pay the loan down.

LOC: A line of credit is not debt, so I am having trouble understanding how anyone got QB to show the available amount for the LOC. Typically you set up an LOC as a credit card type account, and use enter CC charges when you spend using the LOC and then you reconcile the LOC CC account just as any other CC account.

If you could explain what entries were made and where for the original LOC that might help
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Old 09-01-2015, 10:49 AM
mkam mkam is offline
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When you set up your line of credit, include the limit in the description or in the name. It makes it easy to see how much is available.

Mike
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Old 09-03-2015, 09:15 AM
CindyMatteson CindyMatteson is offline
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Awesome instructions. Thank you so very much.
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  #5  
Old 09-14-2015, 04:31 PM
CindyMatteson CindyMatteson is offline
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reconciliation of loc and term loan

Quote:
Originally Posted by Rustler View Post
We have a new LOC as well as a new term loan.

Loan: create a liability account, short term if it will be paid off in less than one year. Open the loan account register and make a new entry as an increase for the amount of the loan, and use the bank account you deposited the funds to as the account. Then you pay the loan down.

LOC: A line of credit is not debt, so I am having trouble understanding how anyone got QB to show the available amount for the LOC. Typically you set up an LOC as a credit card type account, and use enter CC charges when you spend using the LOC and then you reconcile the LOC CC account just as any other CC account.

If you could explain what entries were made and where for the original LOC that might help
>>> The only entries I have made are to enter bills in vendor center and pay same. I created an expense account type for each. I've not made any entries anywhere else. Hoping that I can somehow get caught up with reconciling but I am totally lost.
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Old 09-15-2015, 06:28 AM
Rustler Rustler is offline
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Location: Texas - The Republic
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The only entries I have made are to enter bills in vendor center and pay same. I created an expense account type for each. I've not made any entries anywhere else. Hoping that I can somehow get caught up with reconciling but I am totally lost.

vendor for what? the loan or the LOC or both?

I would set up the accounts as I mentioned, then edit the payment made to the vendor bill and redirect it to the loan or loc, depending on what it was for, and then delete the bill.
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