I'm using TM/BM 9. My firm has a line of credit with a lender. I need to figure out how to account for draws on this line of credit.
I have created an account of type "credit card" since my only other choices were bank and fund. I have set up a GL liability account for the lender. I have created a vendor account for the lender and have linked the vendor to the GL liability account.
My lender cut me a check for X dollars which I deposited into my operating account. I now need to account for this deposit in BM.
What I tried to do is make a miscellaneous deposit specifying the GL liability account, but when I try to save, I get an error message saying "You may not use another bank or fund account as a detail item." This is despite the fact that the account is NOT a bank or fund account. It is a credit card account.
Anyone got any ideas?
Hong Law, PLC
Cedar Rapids, IA
Caren Schwartz (Moderator/CIC)
& Time &
Cents Consultants, LLC
www.3545consulting.com / www.timeandcents.com
Software for Managing Time, Money
Time Matters, Billing Matters,
Billing Matters Plus, PC Law CIC
Thanks for the response. That makes sense.
But what if the lender IS a credit card. Suppose I have a credit card account which I am allowed to draw cash advances against. I want to be able to set up the account as a credit card account so I can charge against it, but I also will need to account for the cash advances.
When I deposit a cash advance check from a credit card line of credit, how should this be accounted for?
I think I have figured out how to make this work. It appears that the following 2-step process should work.
1) When making the cash advance of say $1000: Create a $1000 charge for the CC account and select "Checks to be deposited" as the GL Account. This should result in the following Credits/Debits:
CC Acct $1000
Checks TBD $1000
2) When depositing the $1000 Cash Advance Check: Create a $1000 Misc. Deposit for the Bank account and select "Checks to be deposited" as the GL Account. This should result in the following Credits/Debits:
Bank Acct $1000
Checks TBD $1000
So after these 2 transactions, CC Acct should have a $1000 credit balance and Bank Acct should have a $1000 debit balance which is exactly where I want to be.
This appears to work. Does anyone see anything wrong with this approach?