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acamp1999
December 27, 2023
Question

How to reconcile a credit card where there is an outstanding credit?

  • December 27, 2023
  • 2 replies
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I reconciled our company credit cards (several employee cards under the owner's main account) on 11/10/23 and entered the credit card bill of $23K in QBO. Before the credit card payment was due, we received notification that we were close to our overall credit card limit (due to some large expenses), so I made a large payment ($90K) on the credit card that was for more than the 11/10/23 statement ending balance. When I entered the payment in QBO it marked the 11/10/23 bill of $23K as paid and created and additional credit of $67K. 

 

We just received our 12/10/23 credit card bill and when I try to reconcile the owner's credit card, I am off by the $67K additional credit. How do I get the $67K to show up when I reconcile the credit card so that I can check it off and get the reconciliation to balance?

2 replies

MJoy_D
MJoy_D
December 28, 2023

Let's find or enter this missing transaction to reconcile your account, @acamp1999. 

 

If there are transactions from the previous month that are cleared in this month, you have to reconcile them in the current month's reconciliation. By doing this, you can ensure that your financial records are accurate and that the balances in your bank account and QuickBooks Online (QBO) match. 

 

You can either go to the Transactions page to look for this $67,000. Check the Deposit to or Payment account. Make sure the transactions are in the correct account. Select a different account as needed. 

 

But if not, enter transactions you see on your bank statement but aren't in QuickBooks as new sales receipts or expenses.

 

For more information about fixing the balance of your reconciliation, proceed to Steps 4 and 5 in the following article: Fix issues at the end of a reconciliation in QuickBooks Online. 

 

Additionally, QuickBooks generates a reconciliation report for each session. Learn how to view or print them through this article: How Do I View, Print, Or Export A Reconciliation Report.

 

Let me know if you need further help reconciling your accounts. I'm always here to answer them for you. Have a wonderful day!

Rainflurry
Rainflurry
December 28, 2023

@acamp1999 

 

"How do I get the $67K to show up when I reconcile the credit card so that I can check it off and get the reconciliation to balance?"

 

It depends on how you made the $67K payment.  Since the bill was only $23K, did you overpay the bill by $67K?  If so, that balance is sitting in accounts payable (A/P) and needs to be reclassified to your credit card liability.  To do that, make a journal entry: debit your cc liability account and credit A/P (add cc vendor under NAME) for $67K.  You should now see the $67K credit when you go to reconcile the cc.  If you made the cc payment some other way, reply with details and I will try and assist further.      

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