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LWAY1
November 23, 2020
Question

Credit card credits

  • November 23, 2020
  • 4 replies
  • 0 views

Hi, Our Amex has given us credits in seemingly random amounts when we use the card to pay for shipping.  So I entered them in QB as credit card credits to match the transactions that came in the feed.  I thought all was well until I went to reconcile.  There they are showing the amts twice - once as charges & once payments.  Why aren't they just listed as payments?  I deleted the charge transactions thinking they were extraneous - because they aren't checked & my balance reconciles to zero. But after deleting them then everything went haywire.  If I just leave them there unchecked I will be see them every month in the future when I go to reconcile.  Advice?  Thanks!

 

4 replies

IamjuViel
IamjuViel
November 23, 2020

Hello there, @LWAY1.

 

I can guide you in properly tracking your credit card credits in QuickBooks.

 

You can create a Credit card credit item and use it to record the credit given by AMEX. When recording Credit Card Credit in QuickBooks Online, you'd want to make sure to choose the bank account that paid back the credit. This way, you can match them in the For Review tab. Here's how:

  1. Go to the +New button.
  2. Select Credit card credit.
  3. Choose the payee.
  4. In the Bank/Credit account field, select the credit card account you received the refund.
  5. Select the date in the Payment date section.
  6. In the Category details section, select the same expense account of your original purchase.
  7. Enter the amount.
  8. Click Save and close.

Once done, let's update the downloaded credit adjustment from Uncategorized Asset to the expense account of your original purchase. Here's how:

  1. Go to the Banking menu.
  2. Select the credit card account by clicking the blue tile.
  3. In the For Review tab, locate and select the credit adjustment.
  4. Select the expense account in the Category field.
  5. Click the Find match bullet.
  6. Locate the credit card credit transaction, then click the box before the date.
  7. Click Save.

Once you selected a credit card in the line item, both the payment and the charge have the Credit Card Credit. You can read through these articles to learn more about managing your downloaded bank transactions:

Lastly, I'd recommend reaching out to your accountant to help you decide on the best route to take in recording the credit card credits you've received and choosing the accounts impacted.

 

Fill me in if you have other questions about recording your transactions and reconciling your account. I’m always here to help.

IamjuViel
IamjuViel
November 25, 2020

Just dropping by to check on you, @LWAY1.

 

Were you able to accurately record credit card credits and reconcile it? If you need more clarification on this, just leave a comment below. I'll be sure to get back to you.

 

Wishing you all the best.

L
LWAY1Author
November 30, 2020

Hi, thanks for the follow up.  My question hasn't been resolved.  The directions you provided were as though there was a purchase & then a return.  That is not the case.  American Express has given us random credits - I can only guess that they are some sort of promotion that's loaded onto our card.  If we ship anything (via UPS, FedEx etc) & pay for it w/ the Amex then they issue a credit of a random amount.  I am asking how to account for this credit.  When I entered it as a credit card credit it somehow creates 2 transactions in QB.  I only have check one for the account to balance when reconciling.  I thought I could delete the extra transaction but then for some reason it throws everything off.

    C
    coolexusa
    December 10, 2021

    What works for me is to go to the register and just enter the credit card for payee and enter the amount as "payment" instead of charge and then for the account, enter the bank account that is getting the money back (ie: your checking account). Then it will only end up showing up on the payments side and can be reconciled with no issues. 

    H
    HeatherMcL
    February 21, 2023

    This is inelegant, but it works. Reconcile your account until you are off by the amount of your credit. Click reconcile. When it says that you're off, go ahead and let it create an adjustment (general journal entry). Go to that journal entry in your account and reassign the account the credit should go to (like "Cash reward"). Voila. 

    H
    HeatherMcL
    February 21, 2023

    This is inelegant, but it works. Reconcile your account until you are off by the amount of your credit. Click reconcile. When it says that you're off, go ahead and let it create an adjustment (general journal entry). Go to that journal entry in your account and reassign the account the credit should go to (like "Cash reward"). Voila.

     

    You could also add the general journal entry prior to reconciling. I just find this simpler. 

    D
    dsab
    March 18, 2023

    Sounds like a work around but why does this not work correctly?

    I am using the auto link for our Credit cards and any credit comes across as a charge and my balance is off by that amount??

     

     

    Another issues is that Payments seem to come across ok but since last October there now are three entries for the same amount.  the offsetting entries end up with a payment result that is correct but there is an additional charge and payment for some reason>

    S
    SarahannC
    March 18, 2023

    I appreciate you joining this thread, dab.

     

    Since there are a few responses made in this thread, I'd like to verify what workaround you're referring to. This helps me provide accurate details of your concern.

     

    Credit card accounts may show the transactions in reverse because paying your credit card reduces your balance. Amounts showing under the Payments column increase the credit card or liability balance. 

     

    If the balance is off, you might have duplicate transactions, we can exclude it: Exclude duplicate transaction.

     

    Also, you can create a bank deposit. The Bank deposit is used to track the bank fee in the program.

     

    1. Go to the +New button.
    2. Select Bank Deposit.
    3. Under the Add funds to this deposit section, enter all the required details.
    4. In the Amount field, enter an amount for the additional charge and payment.
    5. Click Save and close.

     

    To learn more about categorizing those transactions, you can check the articles below to ensure your books are accurate and there aren't any duplicate transactions:

     

     

    If you're using other concerns, please let me know. I'll be around to continue to help you. Take care and have a good one.

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