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November 24, 2021
Question

In the transaction menu, credit card payments show as a credit instead of a debit. Is this right?

  • November 24, 2021
  • 1 reply
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1 reply

November 24, 2021

Let me share some information about recording credit card payments, Jerrodpj. 

 

A credit card account is a liability type by nature and the credit side will increase its balance. Then, the debit side will reduce its balance. This is why transactions are posted on the credit side since you increase your credit balance as you use your card. When paying your credit card company, that payment will post to the debit side. This means you're reducing your credit card balance or the amount you owe to the credit card company.

 

We can record a credit card payment by transferring funds from a bank account to a credit card in QuickBooks Online (QBO). We can do this by writing a check from bank to credit card, or adding a downloaded Online Payment transaction from Banking to the credit card register. All of them will reduce the credit card balance and if you have duplicate payments or transfers, we'll end up having a negative credit card balance.  To record your credit card payments, just follow the steps below: 

  1. Click the + New Plus icon. 
  2. Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card.
  3. Choose the credit card you made the payment to.
  4. Enter the payment amount and the date of the payment.
  5. Select the bank account you paid the credit card with.
  6. If you made a payment with a check, hit 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. Press Save and Close.

 

To learn more about this one, see the Record your payments to credit cards article. Please refer to the How accounts are affected by debits and credits article to see different information on how debits and credits work. This also helps you understand the basic functions behind transactions and what to expect when entering them. 

 

Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Have a great day ahead. 

JerrodpjAuthor
November 24, 2021

When I down load transactions from my bank account, I see a payment to credit card and I click confirm.  I'm not tracking my card balance as I pay off every month.   I feel as though quickbooks is showing higher income than I actually have and I'm wondering if say I have 2000 in expenses but but then the credit card payment erases that to a net zero, I now have income of 2000.

April 15, 2023

I have the same issue. Was wondering if you found a way to solve this. Thanks.