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

Items marked with an asterisk (*) are available in Microsoft Office Accounting Professional 2008 only.

Credit card/line of credit accounts are current liability accounts and consist of transactions made by 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 2008, 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 2008 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

ShowForm options and descriptions

Option Description
Account type (Read-only.) Displays the default account type, which is Credit Card/Line of Credit.
Account no. This field appears if you select the Use account numbers check box 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 account numbers for Assets 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 account number by editing the account record.
Account name (Required.) Type a name for the account that describes the credit card/line of credit that you are tracking.

By default, the Active check box is selected, and the status is Active. You can make the account inactive by clearing the Active check box. You can make an account active again by opening the account record and selecting the Active check box.

 Note   An account with Inactive status does not appear in dialog boxes, forms, or wizard lists. However, you can still enter the account in a field.

Cash Flow category In the Cash Flow category list, select the cash flow category for the account. The three options are 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 and note how it is categorized. If you select one of the default Chart of Accounts supplied by Accounting 2008 when you are creating a company, the proper category appears by default.
*Currency When you have Accounting 2008 set to use foreign currency, in the Currency list, select the currency for the account. The options are all currencies you have set as active.
Opening Balance

Displays the opening balance, which is $0.00 by default. You can enter an opening account balance in the 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 account register.

*When Accounting 2008 is set to use foreign currency, the amount is in the account currency.

*Opening Balance (USD) Displays the opening balance in U.S. dollars (USD) when you have Accounting 2008 set to use foreign currency and have selected a foreign currency for the account.
As of

Displays the company start date as selected in Company Setup. To change the date, type the starting date for the account opening balance or click the arrow next to As of to open the calendar.

 Note   You can enter a date prior to the start date that you selected in Company Setup. If you do so, a message appears that gives you the option to allow Accounting 2008 to automatically create all fiscal years necessary to include the entered date.

Include in cash-basis reports

The default report status of an account is determined by the type of account. To change the report status of an account, select or clear the check box. Cash-basis reporting is commonly used for preparing business tax returns.

 Note   If you are unsure about the impact of including or removing an account in a cash-basis report, consult your accountant.

Bank name

Click the arrow next to Bank name, and then select a bank. To add a new bank, select Add a new Bank. If you previously set up online banking in Accounting 2008 at any time, the list includes all banks available for online setup. If you set up an account for online banking, the name of the bank that you selected in the Set Up Online wizard is automatically entered in this field.

 Note   To disable one-way online banking setup for the account, remove the bank name from the field.

Credit limit

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

*When Accounting 2008 is set to use foreign currency, the amount is in the account currency.

Credit card (4-digits) 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.
Comments Type additional information about the account. This field is only for internal informational purposes, and you can view it only by opening the account record.

For more information about using foreign currency in Accounting 2008, see Use foreign currency.

Additional actions

ShowActions menu commands

On the Actions menu, you can select the following commands.

Click To
New Credit Card/Line of Credit Create a new account.
New Journal Entry Create a new journal entry.
Open Account Register Open the credit card/line of credit account register for the record you are in.
Set Up Online Banking Set up online banking. For more information, see About online banking.
Transaction History Open the Transaction History report for the open record.
Transaction Journal Open the Transaction Journal report for the open record.

Related topics

View a credit card/line of credit account register

Reconcile an account
Find company accounts in a list
Record, edit, or void a credit card charge
Applies to:
Accounting 2008