Question

Credit Card Query

Forum|Forum|2 years ago
April 30, 2024
1 reply
4 views

Hi,

Extremely new to QB and something has come up which I am confused about. I have scanned documents to Autoentry and selected pay, then pay bill and use the credit card. In the chart of accounts, the account type us set to credit card and the detail type is set to credit card.

The QB balance is showing as minus £50k and when I pay a bill in Autoentry, the QB card balance decreases which is the opposite of what I am expecting.

As an example, QB balance is minus £50k, a purchase invoice with a value of £1k is paid off and the QB balance goes down to £49k and not up to £51k.

Why is this, please?

QuickBooks Online

J

JanbonN

QuickBooks Team

This is working as it should be, @Lusk.

In QuickBooks, credit card transactions should always be posted as positive values. This is because liabilities or payables are always positive. In case you see a negative value for a credit card transaction, this means that your bank is the one that owes you money since your liability is negative.

Additionally, ensure to reconcile your accounts to keep them current and up-to-date.

Let us know if you have further concerns with your QuickBooks balance. We'll be here to help you in any way we can.

L

LuskAuthor

Thanks for the quick reply.

So I have been entering supplier invoices, paid by card, as a bill and then paying them off immediately in Autoentry.

A bill would be posted as a credit to the creditors control account and then a debit to the relevant expense account.

When that bill is then paid, we need to reduce the value in the creditors control account by debiting that account and to then reduce the amount in the bank balance, we are in effect paying money out of the account which would be a credit.

So what happens when I make a payment in the credit card account and why does this appear to be different in the main bank account?

L

LuskAuthor

Hi Lusk, thanks for getting back in touch with us here

You can use an expense or bill when recording purchases with a credit card. The only difference is that a bill is generally used for payables (where the payment is to be recorded later), while an expense is used for items paid for on the spot.

After entering the transaction, you can view the transaction journal (by selecting More on the toolbar of the transaction > transaction journal), which shows the specific accounts that it posts to and the debit/credit values.

If you're still unsure, I'd recommend contacting our support team by webchat or reaching them by following the guidelines in this article: How to get help with QuickBooks. The agents available here will have access to set up a remote screen share with your QuickBooks to look at this with you. Thanks again!

The original double entry to record the bill was as follows:

Creditors control CR28.20

Vehicles DR 23.50

VAT DR 4.70

So this is all good.

When it came to paying the bill from the credit card account, the following double entries were found

Credit card CR 28.20

Creditors DR 28.20

So this too is all good and working as expected.

I would assume as I have not tested this as yet, but if an expense were to be put through the same transactions would happen but it would not hid the Creditors control account.

Where it seems to be different to other accounting systems is that when bills / expenses are paid through the credit card, the balance increases as more is paid; other accounting systems (Sage) work in reverse. When a bank transfer is made from the main bank account to the credit card account, the balance goes the other way to the expected way.

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