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LunaMoon
July 13, 2024
Question

Where to zero out Credit Card Payment clearing account?

  • July 13, 2024
  • 1 reply
  • 0 views

So we have a Credit Card Payment clearing account where we put all the supposed payments of various credit cards from various checking accounts. I know we're supposed to transfer transactions between checking and credit card in order to record the credit card payments, but there are some credit cards that we don't have in the QBO system so we needed to use a clearing account as an alternative.

Now, I'm wondering where I should record this against in order to zero it out when I do the JE for this? Should I record this against an expense or another liability account? And what should I name it?

1 reply

Rainflurry
Rainflurry
July 13, 2024

@LunaMoon 

 

It should close to your credit card (CC) liability account which increased when you recorded the purchases that were charged to the CC.  The payment will reduce the CC liability balance.  If you don't have a CC liability balance to clear, then how have you been recording the CC purchases?

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