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November 2, 2021
Question

Should credit card payments increase or decrease your balance?

  • November 2, 2021
  • 1 reply
  • 0 views
I recorded a $50,000.00 payment to my credit card account, and the balance is showing -$50,000.00. Why?

1 reply

MichelleBh
November 2, 2021

You've come to the right place for an answer, sangee.

 

I hope you're having a great day so far. I'm happy to explain why your credit card balance is negative on your QuickBooks Online (QBO) account. This way, I can provide guidance accordingly. 

 

Recording payment on your credit card account should decrease the balance. It sounds like you don't have the beginning balance entered into this account. That's why the amount is negative. To sort this out, I'd recommend creating a bank deposit. 

 

Here's how: 

  1. Go to the +New menu, then choose Bank deposit
  2. Select the appropriate account in the Account drop-down. 
  3. Pick your credit card in the Account field under Add funds to this deposit
  4. Enter the Payment methodAmount, and other fields. 
  5. Click Save and close

 

For more details, see this link: Record and make bank deposits in QuickBooks Online.

 

Once done, review your credit card balance. See the sample screenshots below for your reference. 

 

To know the different ways on how to handle credit card payments and other transactions, check out the following articles: 

 

 

Don't hesitate to notify me if you have further questions about your account. As always, I'm delighted to help. Keep safe, sangee.