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anovax
February 28, 2023
Question

Credit Card Payable

  • February 28, 2023
  • 1 reply
  • 0 views

Hello,

 

I was wondering if anyone could me figure this out,

 

I'm working for a client that has a confusing credit card process to me.( we do not reconcile credit cards, only enter actvity)

 

For example 

 

Bank Account paid $87,534.00 towards the Amex card on 06/23/2022

 

The Amex was coded into exel sheet and updated as a bill but the amount enereted is 80,933.64.

 

I already reconciled the bank account account using the amount on the statment.

 

How should I handle the Amex.so that its relfected correctly on the P&L ?

1 reply

BigRedConsulting
BigRedConsulting
March 1, 2023

I'd stop doing all of that and set up a proper credit card account on your chart of accounts and enter charges there to match your statement/your actual credit card activity. Then make payments as checks from your checking account using the credit card account as the 'expense' account on the check, which creates a transfer of funds to that account. Just like in the real world.

 

This will eliminate all of the difficulties around these odd scenarios - such as yours, because tracking credit cards in QB in this way better mirrors how they work in the real word.

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