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L
Lusk
April 30, 2024
Question

Credit Card Query

  • April 30, 2024
  • 1 reply
  • 0 views

Hi,

 

Extremely new to QB and something has come up which I am confused about. I have scanned documents to Autoentry and selected pay, then pay bill and use the credit card. In the chart of accounts, the account type us set to credit card and the detail type is set to credit card.

 

The QB balance is showing as minus £50k and when I pay a bill in Autoentry, the QB card balance decreases which is the opposite of what I am expecting.

 

As an example, QB balance is minus £50k, a purchase invoice with a value of £1k is paid off and the QB balance goes down to £49k and not up to £51k.

Why is this, please?

1 reply

J
JanbonN
April 30, 2024

This is working as it should be, @Lusk.

 

In QuickBooks, credit card transactions should always be posted as positive values. This is because liabilities or payables are always positive. In case you see a negative value for a credit card transaction, this means that your bank is the one that owes you money since your liability is negative. 

 

Additionally, ensure to reconcile your accounts to keep them current and up-to-date.

 

Let us know if you have further concerns with your QuickBooks balance. We'll be here to help you in any way we can.

L
LuskAuthor
April 30, 2024

Thanks for the quick reply.

 

So I have been entering supplier invoices, paid by card, as a bill and then paying them off immediately in Autoentry.

 

A bill would be posted as a credit to the creditors control account and then a debit to the relevant expense account.

 

When that bill is then paid, we need to reduce the value in the creditors control account by debiting that account and to then reduce the amount in the bank balance, we are in effect paying money out of the account which would be a credit.

 

So what happens when I make a payment in the credit card account and why does this appear to be different in the main bank account?

MariaSoledadG
MariaSoledadG
May 1, 2024

I'll explain to you why payment via credit card is different when using a bank account, Lusk.

 

Debit cards are linked to a bank account and draw directly from those funds. On the other hand, credit cards don't draw any funds immediately and must be paid back in the future, subject to interest charges accrued. That's the reason why when making a payment using a credit card is different from a debit card or main bank account. 

 

However, QuickBooks Online (QBO) lets you record credit card payments to keep track of your expenses and maintain accurate financial reports. You can follow these steps instead:

 

  1. Click + New.
  2. Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card.
  3. Select the credit card you made the payment to.
  4. Enter the payment amount and the date of the payment.
  5. Choose the bank account you paid the credit card with.
  6. If you made a payment with a check, select I made a payment with a check. In the Check no. field, enter the check number, or if you paid electronically, enter the EFT number.
  7. If you want to add notes or file attachments, select Memo and Attachments and follow the instructions on the screen.
  8. Click Save and Close.

 

For more information about the process and how you can record the payment using a check, check out this article for more information: Record Your Payments To Credit Cards in QuickBooks Online.

 

Moreover, after you've made the payment, QuickBooks downloads transactions regularly. Learn how you can categorize transactions once you connect your bank. I've added this article for more details: Categorise Online Bank Transactions in QuickBooks Online.

 

Please get back to us if you need further assistance when making a payment. We're always right here to help you all the time.

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