Setting up automatic rules for paying credit card payments

Hello there, Sina.

I'm here to share insights about creating rules with different references in QuickBooks Self-Employed (QBSE) and walk you through the process.

In QuickBooks, we can create bank rules to automatically categorize transactions if you frequently engage with the same customers or vendors and the transactions follow a consistent pattern. If you use it for business purposes, select Business, and if it's for personal usage, choose Personal. Now, for categorization, you'll have to use Credit Card Payment.

Here's how:

1. Go to Transactions.
2. Click the drop-down arrow beside Add transactions.
3. Select Manage Rules.
4. Click Create rule.
5. Enter Description, and select Business Current from the Account drop-down.
6. From the Type drop-down, choose Business.
7. Under Category, go to Financial and then choose Credit card payment.

Also, you may want to check out these articles as your reference in case you need a guide in categorizing transactions and using rules to manage them in QBSE: Create rules to speed up reviews in QuickBooks Self-Employed.

If you have downloaded transactions that don't apply to the rules, you can manually categorize them. This way, you can organize your income and expenses. 

Feel free to add your reply below if you have further concerns about categorizing transactions in QuickBooks Self-Employed. I'll standby to help you out. Have a good one and take care.

Hi, thanks for your reply.  I understand how to set up rules, but need help understanding how Quickbook works.

As I have my credit card transactions set to be imported into Quickbook automatically, I get the individual transactions on the credit card imported into Quickbook; but then I also get an entry which the total owed to the credit cart (the invoice amount as a negative number).  

I also have my current account set up so all business transactions on that are also automatically imported into Quickbook.  So there I pay the Credit Card Invoice.  

Am I right in assuming that if I categorise both the negative credit card invoice and the positive payment out of the current account as Business Expenses the net effect is they cancel out (e.g. £1000 + (-£1000) = 0 and so the only real expense remaining on the business are the individual expense transactions imported from the credit card account?

I appreciate your getting back to us and sharing additional details regarding your imported transactions, Sina. 

I'll provide additional information about how QuickBooks handles this matter.

When categorizing expenses, it's crucial to consider whether they are directly related to your business operations. If an expense is not incurred for business purposes, it should not be categorized as a business expense. Instead, the actual cost of such an expense should be attributed to your checking account, as it is the account responsible for making the payment for the credit card.

By accurately categorizing your expenses, you ensure that your business records reflect the proper financial position of your business. 

Moreover, you can assign transactions, ensuring they are allocated correctly to the appropriate line of your Schedule C.

I'll keep this thread open if you have other questions regarding managing transactions or relevant QBO issues. I am always available to help. 

Thank you for your explanation.  What's the best way then to get itemised expenses from the credit card imported data to then match receipts with?

I am currently categorising them as expenses so I can upload receipts to march.  

Following your suggestion of only categorising the invoice payment as Business expense would not enable me to upload receipts.

We appreciate you getting back into this forum, Sina. Allow me to share additional insights to help you handle credit card payments in your account.

Beforehand, categorising credit card payments in QuickBooks Self-Employed will automatically record this transaction as Transfers. These transfers aren't business expenses since you're not buying anything. Instead, you're categorizing the payment you made to your bank or credit card for business purchases you already made. I'll be sharing this guide for additional information: Categorize money transfers in QuickBooks Self-Employed.

If you're referring to itemising these expenses, we can split business transactions between multiple Schedule C expense categories. If you're having difficulties in what specific expense account to use, we recommend consulting your accounting professional to guide you with the best approach when handling your accounting data. This is to ensure all accounts are accurately reviewed and balanced.

However, if you're experiencing issues with the amounts of your entries, it is best to contact our Customer Care Team. They have the necessary tools to further review the current financial setup of your account and provide additional assistance to resolve this concern.

Here's how to reach them:

1. Go to Help (?) and select Contact Us. For QuickBooks Self-Employed app, tap the + button and click Ask QB Assistant.
2. Enter Talk to human, then select Continue.
3. Select which way you want to connect with us.

• Have us call you - Get a call from a support expert.
• Chat with us - Start a conversation with a support expert.

Moreover, I'm adding this guide to help you ensure transactions are accurately allocated in the right category: Schedule C and expense categories in QuickBooks Self-Employed.

We're always available in this thread for any added queries about categorising transactions. Feel free to let us know in the comments below so we can further provide additional help. Keep safe.