Question

Consistency with Credit Card Payments vs. Interest vs. Statements

Forum|Forum|2 years ago
January 8, 2024
1 reply
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Hey all,

I'm looking for some clean suggestions on how to best keep track of Credit Card payments and interest for my client in QBO.

Here's the situation.

The client makes a credit card payment which is through their same bank and the bank allows them to pay by transferring money from an account to the credit card. They make a transfer and at times it shows up in QBO that the amount transferred is the difference after the interest charge has been applied. When this happens I tend to do a split transaction reflecting, for simplicity's sake, $150 to the card and $50 to interest.

However, some times the bank applies the full amount, say for simplicity's sake again, $200 and there is a separate charge for the interest that appears on the bank statement.

Some times, I see it reports to QBO that the $150 is applied and there is no sight of the interest, so I again do a split transaction. Then the bank statement show's that there was a $200 payment and a separate charge for the interest. Other times the bank statement shows the $150 correctly. All the while, the client makes the same routine payment, the same way with no deviation to their process. Does anyone have suggestions on how to best record these payments. I've tried just recording it as a Credit Card payment in QBO, I've done split transactions, or even just Journal Entries, and honestly it is hit or miss each month if the bank reports it in a way that matches my process. I just don't know until we see the bank statement. I ultimately just want to keep it clean and have one process, it's either that or I'm going about this all wrong and I'd love to hear your thoughts!

Thanks!

QuickBooks Online

C

ChristieAnn 11

Hello there, jbonano.

I've got steps to ensure you can smoothly keep track of credit card payments and interest in the QuickBooks Online.

Please know that QuickBooks will automatically match your transactions once it detects entries with similar amounts and details. Since you already manually recorded transactions within QBO, you'll have to edit the amount or details of this entries. This is done to ensure that the amount is the same as the downloaded or transferred transaction on your bank statement.

Once done, you can now match the transactions. This links them together so you don't get duplicates and keep track of credit card payments/interest efficiently.

Here's how:

Go to Transactions and select Bank transactions.
Choose the tile for the account you want to review.
Go to the For Review tab.
Locate the transaction and click the Match link.

You can refer to this article for additional information: Match online bank transactions in QuickBooks Online.

In case you need steps on how to reconcile your accounts to avoid duplicate data on your end, you can read this article: Reconcile an account in QuickBooks Online.

Stay in touch if you still have other concerns or questions about tracking CC payments and interest in QuickBooks. I’ll get back to help and make sure you're taken care of, jbonano. Wishing you and your business continued success.

jbonanoAuthor

Yeah, these seem to be steps I typically take already. The challenge is the bank sometimes says one thing when I go to match and then their statements say something different. Other times it's fine. I'm more looking for pointers from people who encounter this bizarre issue as well and how they combat that to make the process run more smoothly when they track transactions and/or reconcile. Or is this just something that will forever provide job security as a bookkeeper and I'll always be kept on my toes and have to keep an eye on and fix as it happens.

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