Credit Card/Line of Credit Account form: options and information

Items marked with an asterisk (*) are available in Microsoft Office Accounting Professional 2009 only.

Credit Card/Line of Credit accounts are current liability accounts and consist of transactions made using your company credit card or amounts borrowed against your line of credit.

A line of credit account is a form of revolving credit with a lending institution. It is either secured or unsecured depending on the borrower's credit status. A business applies for a line of credit from a lending institution just like it applies for a loan. Specific details vary by lender, but line of credit accounts generally require an annual fee and have a lower interest rate than a credit card. Unlike a one-time loan, a line of credit can be borrowed against as needed and typically does not have to be repaid by a specific date. Many businesses draw funds against a line of credit account for routine operating expenses.

In Microsoft Office Accounting 2009, a line of credit is a current liability account and operates like a credit card account. If the lending institution offers online banking services, line of credit account statements can be downloaded into Office Accounting 2009 and then matched, reconciled, posted and displayed in reports, just like credit card statements.

Open the form

  1. On the Company menu, click New Account.

  2. In the Select Account Type dialog box, select Credit Card/Line of Credit.

Form options

The form contains the following options.

Option

Description

Account type

The default nominal account type is Credit Card/Line of Credit. This field cannot be edited.

Number

This field appears if you select Use nominal codes in the Preferences dialog box. Type a number in accordance with your company's chart of accounts structure. It is a good practice to number the same types of accounts together. For example, all nominal codes for Asset accounts could start with a 1, all Liability accounts could start with a 2, all Equity accounts could start with a 3 and so on. You can change the nominal code by editing the account record.

Nominal name

(Required.) Type a name for the account that describes the type of credit card/line of credit you are tracking.

Bank name

Click the Bank name arrow to select a bank name that is already entered in Accounting 2009, or click Add a new Bank to add a new bank institution.

Credit limit

Type the credit limit that is allowed by the bank issuing the card.

Card or loan number

Type the last four alpha-numeric characters of the credit card or loan number that is associated with this account. Information in this field is not encrypted.

Status

By default, the Active check box is selected, and the status is Active. You can make the account inactive by clearing the check box. An account with Inactive status does not appear in lists in dialog boxes, forms or wizard lists. You can make an account active by opening the account record and selecting the Active box.

Cash Flow category

Click the Cash Flow category arrow to identify the cash flow identity of this account as Operating, Investing or Financing. The Cash Flow Statement report separates your cash activity into categories that describe your operating, investing and financing activities. By selecting the proper category when you create an account, you ensure that the account activity is properly reflected in the statement. If you are uncertain about the category, open an account of the same type from the Chart of Accounts List and note how it is categorised. If you select one of the default accounts in the chart of accounts supplied by Accounting 2009 when you are creating a company, the proper category appears by default.

*Currency

Select the currency used for this account when Accounting 2009 is set up to use foreign currency.

Opening Balance

The opening balance for the account. You can type an account beginning balance in the Opening Balance field if you are creating the account to bring over balances from another system. When you enter the opening balance, you create the opening balance in the nominal activity.

*When Accounting 2009 is set up to use foreign currency, the amount is shown in the currency you select for the account.

*Opening Balance (GBP)

The opening balance in pounds sterling (GBP) when Accounting 2009 is set up to use foreign currency.

As of

Shows the company start date selected in the Company Setup Wizard. To change the date, type the starting date for the account opening balance or click the As of arrow to open the calendar. You can enter a date prior to the start date that you selected in the Company Setup Wizard. If you do so, a message appears that gives you the option to allow Accounting 2009 to automatically create all financial years necessary to include the entered date.

Comments

Type any additional information about the account that you are creating. This field is only for your internal informational purposes, and you can view it only by opening the account record.

For more information about using foreign currency in Accounting 2009, see About using foreign currencies.

Additional tasks

You can perform the following tasks by using the Actions menu.

Actions menu

Option

Description

New Credit Card/Line of Credit

Click to create a new account.

New Journal Entry

Click to enter a new journal entry.

Open Nominal Activity

Click to open the nominal activity for the account that you are in.

Transaction History

Click to open the Transaction History report for the account record you are in. This report shows all transactions for the account since it was created.

Audit Trail

Click to open the Audit Trail report for the accounting record you are in. This report shows all the journal entries for the account since it was created if it was a new account created during the current financial year or from the start of the current financial year if it is a running account.

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