Question

Sub-Account Credit Card Reconciliation

Forum|Forum|5 years ago
April 14, 2021
8 replies
88 views

We have a bank of america credit card account with two users, which sync to our quickbooks online, they are outlined below: Parent BOA credit card - only interest shows up in this account. - 1st user CC - payments show up in this account, this card is used daily. - 2nd user CC - only used for 2 recurring charges a month. A bookkeeper told me to transfer the monthly balance of each user card to the parent account, then reconcile each user card to a balance of zero. This will ensure I have recorded all the transactions for the authorized users and put their final balance together, in the parent account. Then I could reconcile the parent account to the statement ending balance. This has worked great, unit I was reconciling a users credit card, which the payments post to. Although I am creating the transfer as instructed, which brings the balance to a zero, it goes back up whatever amount the payment was for that month. What should I create to offset this amount? I have included a screenshot.

QuickBooks Online

M

MadelynC

Moderator

I’m glad to assist you today, @MrsPro.

Based on the screenshot you’ve provided, it seems you’ve recorded a credit card credit in the program worth 1500.00. This is the reason why there’s a difference in your reconciliation.

You have the option to delete or create a journal entry to offset this amount. While doing so, I’d recommend contacting an accountant for assistance. They can give you advice on this matter, so you’re able to reconcile this credit card successfully.

This guide about reconciling account workflow makes sure the amounts match your credit card statements. You can use it as a reference if you need help doing or fixing a reconciliation.

Don’t hesitate to add a comment below if you need further assistance with banking. I’m here to help. Always take care!

M

MrsProAuthor

yes, this 1500 is the reason, but that is there due to a missing credit payment, so I don't need to delete or edit it. I understand I can enter a journal entry to offset this amount, but that doesn't really answer my question on correctly reconciliating the sub account account though.

MJoy_D

QuickBooks Team

I can provide additional information with reconciling your subaccounts, @MrsPro.

Yes, you're correct in reconciling the parent account since all transactions in the sub-accounts roll up into it. You can also create a Credit Card Credit to correct the account balance. This way, its amount will go to the parent account and then the sub credit card balance will reduce.

Here's how:

Select the +New button and choose Credit Card Credit.
Choose a payee and in the Bank/Credit account field, enter the sub-account.
In the Category details, choose the parent account.
Once done, click Save and close.

For the detailed steps in reconciling an account in QBO, please proceed to the Reconcile the account section of this article: About bank or credit card subaccount setup.

Just in case, I'll add this article for future reference: About bank or credit card subaccount setup.

Please know that you can always post here if you have more questions in reconciling your accounts. Just click the Reply button and I'll be around to help. Stay safe and have a good one.

E

Excavating

Did you ever get an answer to your question? I’m trying to understand this too

JasroV

Level 8

Nice to have you joined this thread, @Excavating.

I'd like to help and address your concern right away. Would you mind sharing with me which part of the issue and resolution above is unclear to you?

This way, I'll be able to provide you with the best fix for it. Any additional details are appreciated.

I'll be around to keep an eye on your response. Have a good one!

E

Excavating

The question at hand is not how to pay the account but how to reconcile the sun account and show the sun account monthly balance in the parent account to allow for reconciling the parent account.

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