Here are the differences:
LOC is a Liability. If you Draw from it and deposit the proceeds into Banking, then it is Liability. The Activity is going in and out of Banking and when you pay interest and principal, the details are on the Check you enter to show they took funds from checking to pay against your LOC balance.
LOC as Credit Card, a different type of Liability, is used when Your regular banking is not the Spending entity. Example: I get a construction LOC and everything I submit to the Bank is paid by the Bank, drawing on the LOC directly. Or, I pay using the LOC directly. In both of these examples, using CC functions is helpful, but still not Required. I also can Enter bills to vendors, then show the vendor balance is offset to the LOC as Other Current Liability.
