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midsouthwaterllc
February 15, 2024
Question

Paying a credit card statement where one account has a negative balance

  • February 15, 2024
  • 1 reply
  • 0 views

On one of our credit card accounts there were more credits than debits and the statement balance is -21.11.

 

The process I use in QB is as follows: I reconcile a CC account, QB pops up the Print window for the Reconciliation Detail and Summary, and then QB opens up the Enter Bills window with the reconciled amount due already filled in. Once all accounts are reconciled and Bills created, I check all of the accounts in the Pay Bills window to pay and record the EFT transaction. I do not normally have a problem as the accounts correctly add up to the Statement balance. This is not working this time around because of the negative balance on one of the CCs.

 

I was able to successfully reconcile the account, but because QB does not allow negative amounts as bills, it is not even going to the Enter Bills window as it normally would after reconciliation. It records it as $0 and does not show up in the Pay Bills window. So when I select all the accounts as I normally would in the Pay Bills window, my total payment amount does not match the total statement amount due. It is $21.11 more than it should be. 

 

Another attempt, I undid the first reconciliation and tried again using a positive amount as the Ending Balance (used -21.11 plus the credit transaction). This time the Enter Bills window did open after reconciliation and I saved it. Then, I entered the credit transaction as a separate Credit in Enter Bills window. Now the account does show up under the Pay Bills window, but when I click the Set Credits button on the Pay Bills window to use the credit entered, it just zeroes out the bill and is still unable to take into account the negative balance on the CC, and the total payment amount is yet again $21.11 more than it should be. 

 

Please help me to accurately manage this situation without messing up any account balances or future reconciliations. I just need all the amounts I entered to work without QB zeroing it out instead of accounting for the -21.11.

1 reply

AlverMarkT
AlverMarkT
February 15, 2024

Hi there, @midsouthwaterllc. Thank you for detailing your concern.

 

I can help share insights to accurately manage the negative balance of your Credit Card (CC) account in QuickBooks Desktop (QBDT). 

 

You're already on the right track. A negative amount in your Credit Card (CC) account means you paid more than your credit card charges. Since your CC account has a balance of -21.11, rest assured you don't need to create a bill in this case since you've already paid more than the credit card charges you owed.

 

Next, the bank statement is the source of truth. If the ending balance of your CC account statement is -21.11 and correctly reflects the ending balance of your record in QBDT, you don't have to create a positive ending balance. You can reconcile moving forward. 

 

After this, let me add this article to check out the available reports to track your cash flow in QBDT: Track your cash flow in QuickBooks Desktop. 

 

We'll be here in the Community if you need further assistance or if there are details you'd like to add in accounting for the negative balance of your CC account in QBDT. We're committed to offering ongoing support. Have a great day ahead!

M
midsouthwaterllcAuthor
February 15, 2024

The balance on ONE of the CC accounts is a negative amount (a credit). The actual entire statement balance itself (all the CCs combined) is not negative. I am trying to record/pay the entire statement balance through the Pay Bills window as I normally do (from our bank account via check). Because QB is not acknowledging the -21.11 for the ONE CC account (only $0), the statement balance/amount to be paid is not calculating correctly.

 

TOTAL statement amount due = $10,296.50

TOTAL amount it comes to on Pay Bills window for all the CCs = $10,317.61

 

Another thought I had.. If I save/Pay Selected Bills using the incorrect total amount in the Pay Bills window, but I change the check amount and correct it manually after saving? Will that balance things out or will that mess other things up behind the scenes? 

 

 

 

 

 

G
GebelAlainaM
February 15, 2024

Thanks for getting back to the thread, @midsouthwaterllc.

 

I'll share additional information about the negative amount on your Credit Card (CC) accounts in QuickBooks Desktop (QBDT).

 

As my colleague mentioned above, the negative amount on your CC accounts is an overpayment. 

 

In this case, I suggest reviewing the transactions on your credit card to check what's causing the negative amount or if there's a duplicate since the total statement amount due is correct, and the pay bills window has a bigger amount. You can compare it with what you recorded with your bank statement to make sure everything matches.

 

Moreover, you don't need to save or pay the selected bills using the incorrect total amount in the Pay Bills window. 

 

Also, we can't guarantee that it will balance things out, or it could mess up your account. I would also advise you to consult with your accountant or a QuickBooks Certified ProAdvisor. That way, they can guide you with the appropriate process and ensure the accuracy of your books.

 

I'm attaching these articles to make sure your accounts in QB match your real-life bank and credit card statements:

 

 

Please post a reply again if you have any other concerns with entering a negative credit card transaction. I'm always here to help you out.

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