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hlbfab01
May 21, 2021
Question

Charges on business credit card account showing up as charges, but not taking away from balance.

  • May 21, 2021
  • 1 reply
  • 0 views

Hello!

I am using Quickbooks Desktop Pro 2020. 

I created a new credit card account in chart of accounts. The starting balance is 5700. I have some transactions to lessen that balance. But unfortunately when I do, it comes up as a charge-which seems correct-but ADDS too the balance of the card rather than taking away from it.

It also states the 5700 balance as a first transaction being a charge as well.

 

I hope this makes sense. How do I change this? 

1 reply

J
jamespaul
May 21, 2021

Hello, hlbfab01. 

 

I'm here to help you take care of those credit card transactions and ensure the balance on your account is correct. 

 

Just to give a brief overview on the credit accounts in QuickBooks, when you use a credit card charge transaction (or entering an opening balance), it will always increase the balance. Make sure that those transactions that lessen the balance are entered correctly in QuickBooks.

 

You'll want to use a check to decrease it instead. I'll show you how to do it: 

 

  1. Go to the Banking menu, then select Write Checks. 
  2. Select the bank account where you want to pay the credit card charge to. 
  3. Choose the credit card provider under PAY TO THE ORDER OF. We're basically paying the provider, not the merchant. If you haven't added them yet, select the Add new button.
  4. Under Expenses, choose the credit card account.
  5. Under AMOUNT, enter the amount you want to pay.
  6. Click Save & Close. 

 

If you have connected your account for the Bank Feeds, simply match the records with your transactions in QuickBooks. 

 

If you need a reference or a guide on how to manage your credit cards, you can check this article: Set up, use, and pay credit card accounts. 

 

Ready to reconcile your bank accounts? This article can help you with the process: Reconcile an account in QuickBooks Desktop.

 

I'm always here to help you with your credit card transactions. Just say the word if you have other questions about them. Looking for help on other processes? I've got you covered again. 

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