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lainscough
February 11, 2020
Solved

Reconciling 2 credit cards on combined statement

  • February 11, 2020
  • 3 replies
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My client has two Chase Visa credit cards that are on a combined bank statement. In QBO, the two credit cards were set up as individual COA accounts and individual bank feeds. Credit Card #1 is where all the payments and interest come through on the bank feed and has a lot of historical transactions. Credit Card #2 only has actual CC transactions ... no payments nor interest. Credit Card #1 is reconciled though 5/14/2019. Credit Card #2 had its first charge on the next statement. Credit Card #2 also has a large opening balance which I think is incorrect since nothing had been charged on the card. When I look at the Audit History of the opening balance transaction for Credit Card #2, it is a Credit Card Credit and added by Online Banking Administration on July 8, 2019. Is this something that happened when someone connected the bank feed? My main question is how do I reconcile these accounts from the combined statements from 5/14 onwards without messing up all the historical transactions? Thanks!

Best answer by MariaSoledadG

Hi lainscough,

 

You'll want to set up the first bank account as a parent account and the other as a sub-account.

 

Here's how: 

  1. Go to the Banking menu or Transactions menu.
  2. Select Connect from the landing page, or select Add account if you've already created an account.
  3. Search for your bank. 
  4. Click Continue, then enter the username and password you use for your bank's website in the pop-up window. 
  5. Select the type of account you want to add. 
  6. Select the date range for the download. Some banks download the last 90 days of transactions, others go back as far as 24 months.
  7. Click Connect.

Once you connect to Online Banking, you'll have to make sure how your bank sends the downloaded transactions. If the transactions download to one account, connect only the parent account. If the transactions download to the individual accounts, connect the subaccounts and not the parent account.

 

If you're opening balance is incorrect, you'll want to delete the balance, please see the steps below.

  1. Click the Accounting menu on the left panel.
  2. Select Chart of Accounts. 
  3. Select the account. then click View register.
  4. Click Edit to delete the opening balance. 
  5. Click Save.

Once done, you'll want to reconcile the parent account because all transactions will also roll up in the sub-accounts.

 

For more information, please check Banking and bank feed.

 

Reach out to us always if you have other questions. I'm always right here to help.

3 replies

MariaSoledadG
MariaSoledadGAnswer
February 11, 2020

Hi lainscough,

 

You'll want to set up the first bank account as a parent account and the other as a sub-account.

 

Here's how: 

  1. Go to the Banking menu or Transactions menu.
  2. Select Connect from the landing page, or select Add account if you've already created an account.
  3. Search for your bank. 
  4. Click Continue, then enter the username and password you use for your bank's website in the pop-up window. 
  5. Select the type of account you want to add. 
  6. Select the date range for the download. Some banks download the last 90 days of transactions, others go back as far as 24 months.
  7. Click Connect.

Once you connect to Online Banking, you'll have to make sure how your bank sends the downloaded transactions. If the transactions download to one account, connect only the parent account. If the transactions download to the individual accounts, connect the subaccounts and not the parent account.

 

If you're opening balance is incorrect, you'll want to delete the balance, please see the steps below.

  1. Click the Accounting menu on the left panel.
  2. Select Chart of Accounts. 
  3. Select the account. then click View register.
  4. Click Edit to delete the opening balance. 
  5. Click Save.

Once done, you'll want to reconcile the parent account because all transactions will also roll up in the sub-accounts.

 

For more information, please check Banking and bank feed.

 

Reach out to us always if you have other questions. I'm always right here to help.

L
lainscoughAuthor
February 11, 2020

These 2 accounts were set up by another bookkeeper long ago.  So, I have 2 accounts on the same level, and they have been downloading transactions from their separate banking feeds for quite some time and the feeds are both current.  Are you saying I need to create new account that will server as the master, then move both accounts as a sub-account to the new master?  Will the bank feeds remain intact?  

 

Or, are you saying use Credit Card #1 as the master and move Credit Card #2 as a sub-account of the master?

 

My problem is this was set up and has been downloading for some time now and I don't want to reinvent the wheel.

Kristine Mae
Kristine Mae
February 11, 2020

Let me ease your confusion, Lainscough.

 

When connecting accounts to Online Banking, we'll have to know how the bank sends the downloaded transactions. In your case, they're downloaded to the individual accounts. That's why it was correct to connect the credit card accounts to bank feeds.

 

Although, we still have to add the bank account (parent), then set up the credit card accounts as sub-accounts for reconciliation purposes. You will only have to reconcile the parent account because all transactions in the sub-accounts are rolled up into it. 

 

I know you're worried about the transactions in your bank feeds. It will remain intact since we're only adding the parent account. We're not disconnecting any accounts. I'm here to help you.

 

First, here's how to add the parent account:

  1. Click Accounting, then go to the Chart of Accounts tab.
  2. Click New.
  3. Fill in the necessary fields, then click Save and close.

Next, let's set up the credit card accounts as sub-accounts. Here's how:

  1. On the Chart of Accounts page, look for the credit card account.
  2. Click the View register drop-down arrow, then select Edit.
  3. Tick the Is sub-account box, then select the parent account.
  4. Click Save and Close. 

Then, you can reconcile the parent account. 

 

You can also check this reference about bank or credit card subaccount setup for more details.

 

If you have additional questions, feel free to drop a comment below. 

    B
    bettyjo2
    May 5, 2021

    This is not working all it does is create another account.

    I have a credit card that has multiple credit cards. When I go to reconcile all the transactions are included in the statement. they maybe separated but still included in the beginning and ending balance. I am pretty sure that Quickbooks has come across this problem so why can I not find good directions on how to make it work, without batch entering all the other transactions from the other credit cards.

    D
    DebSheenD
    May 5, 2021

    Hi, bettyjo2.

    Thank you for keeping us updated on your concern. I'll make sure that you can reconcile the two credit cards in one account.

    In connecting 2 credit cards in one account you need to make one account a sub-account and connect it to other accounts which is called the parent account. This is because the bank provides the entire balance of the 2 accounts.
     

    You can check this link on how to connect your bank to credit cards.

    For future reference, read through this article to learn more about bank or credit card subaccount setup to only show what's relevant to you and your business.

    Feel free to reply on this thread if you have additional questions or concerns about connecting bank accounts, We're always here to help.
     

    B
    bambete
    January 27, 2023

    This was set up correctly by the owner years ago (Parent Co 1st, then each cc acct under as subs) and are feeding correctly.  They have never reconciled these accounts and I started by doing a forced reconciliation last year end and reconconciling the year month by month.  I match the monthly ending balances on the statement by reconciling, but the balance sheet is still taking the J/E's from the past and so the balances are way off.  The accountant keeps making journal entries against the individual accounts AND the parent account which has set all of the balances off from the beginning.  He has made several to bring the balances to true at month end which I believe is duplicating transactions that came through the feed.

     

    He closed 2021, so I cannot go back and try to sort it out.

    Candice C
    Candice C
    January 27, 2023

    Good afternoon, @bambete. 

     

    Congrats on making your first post here in the Community. Allow me to point you in the right direction to get this handled once and for all. 

     

    Based on the details you gave, I recommend contacting our Customer Support Team for further assistance. They'll be able to use a screen share tool to review your account. Here's how: 

     

    1. Go to the Help icon in the top right-hand corner. 
    2. Press the Contact Us button/hyperlink. 
    3. Enter the question and hit Let's talk. 
    4. Scroll down and pick to Get a callback. 

     

    It's that easy! 

     

    Keep us updated on how the call goes. We're always here to have your back. Best wishes!  

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