Managing a Home equity loan with checks

You can't do what you're trying to do; it would require booking a liability that isn't owed.  The "balance of available funds" on the HELOC is not a liability until it is drawn down, and should not be reflected in the books.  A footnote disclosure to the balance sheet is the way show it.

Nice answer Archie.

Good response

Hi there CPA's and all.  Thanks for your info.  I had previously set up an "Item" that reflects against the "Long Term Liability".  I just keep forgetting all these inovative structures.  Please comment about this as I have done many and I do mean many "creative and expansive" venues to control what seems to "should be".

Here is what happens:  I loan $1000 from my HELOC to customer.  I have an Item called, "Loans to and from HELOC #1234" (I have several so need to specify the differences).  Using this item, I invoice that item with the $1000 value to the customer (loaned to) and the customer now owes it and the HELOC is increased by the $1,000.  This represents an additional $1000 liability and also $1,000 income (asset).

If this is viable and you like it, I am happy to share others.  Whatcha think?  Rich