My HELOC and reco[n]ciliation
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burwell.stone
Unconfirmed, Member ✭
I have used Quicken for a couple years for my family and self-employment accounting. While I have business background, I am no accountant, and I don't know how to 'fix' some weird booking that occur when my bank drawas moey from my HELC to cover major transactions. How do I 'fix' this one-time? And how do I set up Quicken so that I don't have this reoccuring issue? 0
Best Answer
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I'm not exactly grasping what the problem is here because you haven't provided any detail about the "weird booking" that has occurred.The general recommendation when setting up a HELOC is to make it a "manual" loan - a loan where you make accounting entries as transactions occur - and that operates very much like a credit card. That is, like a credit card, money flows in - you make payments - and money flows out - you draw on the loan to make various purchases. Because money flows in and out and because a HELOC doesn't have a fixed amortization schedule, you wouldn't create the HELOC Account as a regular Loan Account.So if the bank draws money from the HELOC - maybe for fees or something - you simply make the appropriate accounting entry in the loan's register.Debit (increase) Loan Fees Category $XX.XX
Credit (increase) HELOC Account $XX.XXHave you perhaps set this up the HELOC Account as a "downloading" loan of some sort, an Account where you have no access to the loan's register in Quicken and only bank loads affect the Account?5
Answers
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I'm not exactly grasping what the problem is here because you haven't provided any detail about the "weird booking" that has occurred.The general recommendation when setting up a HELOC is to make it a "manual" loan - a loan where you make accounting entries as transactions occur - and that operates very much like a credit card. That is, like a credit card, money flows in - you make payments - and money flows out - you draw on the loan to make various purchases. Because money flows in and out and because a HELOC doesn't have a fixed amortization schedule, you wouldn't create the HELOC Account as a regular Loan Account.So if the bank draws money from the HELOC - maybe for fees or something - you simply make the appropriate accounting entry in the loan's register.Debit (increase) Loan Fees Category $XX.XX
Credit (increase) HELOC Account $XX.XXHave you perhaps set this up the HELOC Account as a "downloading" loan of some sort, an Account where you have no access to the loan's register in Quicken and only bank loads affect the Account?5
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