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nitsujayyy
June 18, 2024
Question

Bank Feed Debit and Credit Card Reconciliation

  • June 18, 2024
  • 2 replies
  • 0 views

So I'm currently reconciling my debit or checking account. I see payments made to credit card whether it's same bank or other bank. If I'm also looking at my credit card feeds, basically how do I match it so that I don't double expense it or double record cash coming out.

 

Example.

 

Checking account:

Payment to Chase Credit Card $5000

 

Credit Card:

Purchase 1: 2000 (expense)

Purchase 2: 2000 (expense)

Purchase 3: 1000 (Misc)

 

In the example above, how do I record the chase credit card payment cash coming out of my bank and then when I look at credit card feed, I can appropriately expense it? Which way is the easiest

 

2 replies

Rainflurry
Rainflurry
June 18, 2024

@nitsujayyy 

 

Perhaps you know this already and, if so, forgive me.  The expense is recorded at the time you record the charge to your cc along with a corresponding increase in your cc liability.  The payment made to reduce your cc balance is a reduction of your cc liability and your bank account.  When you pay down your cc balance, create a "check" transaction (use EFT as the check #) and assign your cc liability account to the check.  That "check" payment can then be matched to both your cc feed and bank account feed.       

N
nitsujayyyAuthor
June 19, 2024

So credit card bank feeds record the expense And match it first. Apply check for all credit card payment from bank feed. 

as for credit card bank feeds I have to check, but it has its own account. Do I need to make one for credit card liability?

 

my bank fees is linked to “bank” account. 

J
Jelayca V
June 19, 2024

I'm here to provide clarifications to your questions, @nitsujayyy.

 

Please know that the article provided by my colleague is simply a link for accessing information on paying credit charges. You can use this to complete the process and ensure you can accurately record your transactions.

 

Moreover, as you correctly pointed out, you are correct that credit card transactions will be shown in your credit card bank feed in QuickBooks Desktop (QBDT). This is where you can track and monitor your credit card transactions.

 

When it comes to vendor credit cards, it is not necessary to set up a separate vendor for each transaction. Instead, you can combine them into a single vendor entry and use the credit card account when making payments.

 

Also, you don't need to create a credit card liability because a credit card inherently represents a liability on its own.

 

I'll be leaving you this article that you can visit anytime to learn how to pay credit card accounts in QBDT: Set up, use, and pay credit card accounts

 

I'm also providing this article to help you reconcile your accounts and ensure they match your bank and credit card statements in QBDT: Reconcile an account in QuickBooks Desktop

 

Don't hesitate to reach out to us if you have further questions about handling credit card accounts in QBDT. We, in the Community, are always here to assist you with any of your concerns anytime. Take care.

R
RhoiceW
June 18, 2024

Hi there, nitsujayyy. I can provide the easiest way to record and reconcile your credit card feed to avoid double expenses.

 

When reconciling your transactions, you can enter the credit card charges before or after reconciling. Then, you can match the bank transactions with the downloaded transactions.

 

Follow these steps on how to enter credit card charges in QuickBooks Desktop.

 

Here's how:

 

  1. On the Banking menu, select Enter Credit Card Charges.
  2. Select a credit card account from the Credit Card ▼ dropdown.
  3. Purchase/Charge is the default.
  4. Choose a vendor from the Purchased From ▼ dropdown.
  5. Enter the date.
  6. Enter all the credit card charges under Expenses. Then, enter the amount.
  7. Select Save & Close.

 

In addition, you can refer to this article to learn the steps in paying your credit card before or after reconciliation: Set up, use, and pay credit card accounts.

 

Moreover, you can refer to this article to learn what to do if your accounts don't match your bank statements at the end of reconciliation: Fix issues when reconciling in QBDT.

 

If you still have concerns about reconciling in QBDT, feel free to revisit this post. I'm always here to help.

N
nitsujayyyAuthor
June 19, 2024

What do you mean by this “

In addition, you can refer to this article to learn the steps in paying your credit card before or after reconciliation: Set up, use, and pay credit card accounts.”

 

Also as for “credit card” wouldn’t it be my credit card bank feed? As for vendor for credit card, I have to make a vendor for each one or can I consolidate it somehow. 

 

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