Working Capital Loan showing Negative Balance
ScorpionCoatingPlus
Member Posts: 5
Hello all,
I hope that this in the correct section. I had a PayPal working Capital loan from July 18-December 18', that was paid off. A % of sales were taken from my PayPal account automatically. I have the loan set up in my Chart of Accounts, It seems like it is backwards as it is showing a negative balance. I did read the article from a google search, but it doesn't seem to make sens to me. The initial loan amount of 8500 was transferred to my PayPal account, that transaction is black, and then all of the payments going from my PayPal, back to the working Capital loan are in green. So I am sort of stumped. Should it be posted the other way around? The ending balance is slightly off minus it being negative, there may be a double transaction there. 
Comments
Hey @ScorpionCoatingPlus
When you transfer from your line of credit account (liability account) to your PayPal account (asset account) you'll see the outgoing funds from the liability in black, and the incoming funds to the asset account in green. This initial transfer increases the balance in both accounts if they're set up correctly. As you pay back the loan, you'll see these transactions in green, which will decrease the balance of the loan account.
Make sure to double check that you've set up this Line of Credit as a liability account. If you've added the line of credit as an asset by mistake, you'll need to recreate the account as a Liability, and then move all of the transactions to the new liability account instead.
If the account types are set up correctly, it sounds like something else may be the cause of the balance being incorrect in this case, perhaps duplicated or misallocated transactions. I'd recommend heading over to Accounting>Reconciliation to check the transactions in your statement for the line of credit account against the transactions you've entered in Wave. Usually, this makes it clear where the issue is coming from.
Thank you. I believe that I think I may have set the account up as an asset and not as a liability.
Hi @ScorpionCoatingPlus ! Just following up to see if all is well? Please let us know if we can help you with anything else. Hope to see you around.