What is Line of Credit in QuickBooks?
Line of credit in QuickBooks is the loan given to the vendor or the customer to get the information about the credit given for the loan and the detailed structure of the amount recorded.In QuickBooks desktop version the line of credit is predefined to the user or vendors.while the transaction is processed it always reflects in line of credit if it is added to the credit.We can reconcile line of credit by checking the previous transactions of the customer or the vendor if it has food past experiences according to past line of credit given it will reconcile.
How to Set up and Track Line of Credit in QuickBooks?
Journal entries are also pointed in line of credit in the other part of it.Which means line of credit will always calculate and keep the owner aware about the credit given and how much more can be used.But if line of credit crosses the budget then also it will be given but will be added for the next payment or transactions.
When a account is created for the vendor or customers they always have the option of taking the loan to keep a specific amount in the line of credit in QuickBooks this amount is managed by the QuickBooks with the help of line of credit to have all the related information regarding the payment and transactions to the line of credit.
When a chart is made for all the accounts line of credit gives the benefit to the previous account holders with giving them loan of their order amount and details are stored with line of credit in QuickBooks itself.