How to set up a line of credit

Summary

Setting up a line of credit in Sage 100 Contractor.

Resolution

Resolution overview

You create one account, record money received, spend the money, and record interest in simple steps.

Set up the line of credit account

  1. Open 1-7 General Ledger Accounts.
  2. Add a new account in the current liability range.
  3. Use a clear name, such as "Line of Credit Payable".
  4. Save the account.

This account tracks how much money you still owe the bank.

Record money received from the line of credit

  1. Open 1-3 Journal Transactions.
  2. Enter the date you received the money.
  3. Debit the checking account for the amount received.
  4. Credit the line of credit liability account.
  5. Save the transaction.

This step shows the money added to the bank and the amount you now owe.

Spend money from the line of credit

  1. Pay bills or expenses the same way you normally do.
  2. Credit the checking account.
  3. Debit the line of credit liability account.
This step lowers the amount currently borrowed on the line of credit.

 

Pay Down the Line of Credit

  1. Open 1-3 Journal Transactions.
  2. Enter the payment date.
  3. Debit the Line of Credit (Liability) account for the principal portion of the payment.
  4. Debit the Interest Expense account for the interest charged on the payment.
  5. Credit the Checking account for the total payment amount (principal + interest).
  6. Review and save the journal entry.

This transaction reduces the outstanding balance on the line of credit and records the interest expense incurred for the period.

Solution Properties

Solution ID
230609171933050
Last Modified Date
Tue Mar 17 20:05:43 UTC 2026
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