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Level 1

Creating a parent account for credit card

I am new to QB and I am trying to reconcile my credit card account for the first time. It is one main credit card account with two credit cards. I have already connected the bank to QB for these credit card accounts but each one comes over separately.  I would like to make a parent account and edit the two existing credit card accounts to make them sub accounts to the parent account.  Is it ok to do this after the fact?  I already have all of the transactions coming over for each credit card separately.  But I don't think I can reconcile it because both credit cards are reported under one statement from the bank.  

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Best answer 02-17-2020

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QuickBooks Team

Creating a parent account for credit card

I’m here to clarify things out about the parent account and sub-accounts, dudleytut.
 
No, it won't create a problem. It would be best to do that, you can follow the steps below in turning an existing account into sub-account:

 

  1. Log in your credentials in QuickBooks Online company.
  2. Go to Settings ⚙ and select Chart of Accounts.
  3. Find the account and select the small arrow ▼ in the action column.
  4. Select the Edit button.
  5. Select Is sub-account and then enter the parent account.
  6. Select Save and Close.

 

Some banks may show the overall bank balance at each sub-account level. This is because the bank provides us with a static balance of the entire account, not the balance of each sub-account.
 
You can refer to this article for more information: About bank or credit card subaccount setup.
 
Do you have questions in mind? Let me know right away and I’ll back you up. Take care!

View solution in original post

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Highlighted
QuickBooks Team

Creating a parent account for credit card

I can see that this is your first post so let me take time to welcome you in the Community space, dudleytut.

 

Yes, it would be best to do that.

 

When we connect our credit card account, we have to determine how your bank sends the downloaded transaction. We'll have to connect only the parent account if the transactions are downloaded to one account. If it's downloaded to both parent and subaccounts, then we'll have to connect them both.

 

In your case, we'll have to disconnect all the subaccounts then connect only the parent account. This way, you'll only have to reconcile the parent account since all the transactions in the subaccounts are rolled up into it. You can refer to this link in disconnecting the subaccounts: Disconnect or delete an account from the Downloaded Transactions page.

 

Once done, we can create subaccounts in your chart of accounts to break down your bank transactions into greater detail. I'll guide you how:

  1. Click the Gear ⚙ icon.
  2. Choose Chart of Accounts.
  3. Click New
  4. Select the account type and detail type.
  5. Click the Is sub-account option and then enter the parent account.
  6. Enter the necessary information.
  7. Hit Save and Close.

We can also turn an an existing account into subaccount (If you have one).

 

Then, let's connect the parent account. I've added an article that will guide you in doing it: Connect bank and credit card accounts to QuickBooks Online.

 

You may refer to this link in categorizing your downloaded credit card transactions.

 

If you have further questions or need a helping hand in managing your credit card accounts, just let me know and I'll get back to you as quickly as I can.

Highlighted
Level 1

Creating a parent account for credit card

Dear KlentB,

Thank you so much for your quick response and detailed solution.  I have disconnected both of the credit card accounts.  Before I continue, I want to be sure I understand the next step.  In your instructions, you say to create new sub-accounts.  I am wondering if I could use the existing accounts I had originally set up and edit them so that they will be sub accounts to the parent.  Will that create a problem?

Thanks again for all of your help as it is most appreciated!

 

Highlighted
QuickBooks Team

Creating a parent account for credit card

I’m here to clarify things out about the parent account and sub-accounts, dudleytut.
 
No, it won't create a problem. It would be best to do that, you can follow the steps below in turning an existing account into sub-account:

 

  1. Log in your credentials in QuickBooks Online company.
  2. Go to Settings ⚙ and select Chart of Accounts.
  3. Find the account and select the small arrow ▼ in the action column.
  4. Select the Edit button.
  5. Select Is sub-account and then enter the parent account.
  6. Select Save and Close.

 

Some banks may show the overall bank balance at each sub-account level. This is because the bank provides us with a static balance of the entire account, not the balance of each sub-account.
 
You can refer to this article for more information: About bank or credit card subaccount setup.
 
Do you have questions in mind? Let me know right away and I’ll back you up. Take care!

View solution in original post

Highlighted
Level 1

Creating a parent account for credit card

Thanks for your help!

 

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Level 1

Creating a parent account for credit card

I have a very similar problem. The credit cards are from Bank of America.  There is the main and two employee ones.  All three are connected to QuickBooks Online.  In Chart of Accounts it will not allow me to put the two employee ones as a sub under the main account.  Each account receives a bank balance.  I have read that the parent account should not be connected, however, if I disconnect it what do I do with the small amounts of interest earned, etc.

Highlighted
QuickBooks Team

Creating a parent account for credit card

Hello there, @Slfike.

 

Since the accounts are already connected in QuickBooks Online you'll have to upload the transactions.

 

Here's how: 

  1.  Go to the Banking menu.
  2. Select the Banking tab.
  3. Click the blue tile for the account you want to upload the transactions into.
  4. Select the Update ▼ and then File upload.
  5. Follow the onscreen instructions.

After that match and categorize the transactions, by going to the banking menu. 

 

For future reference on how to resolve issues in uploading transactions and steps to do if you're unable to download transactions in QBO, please check these articles: 

If there's anything else that I can help you with, please let me know in the comment section. I'll be here to lend a hand. Take care always.

 

 

Highlighted
Level 1

Creating a parent account for credit card

Thank you.  I have been able to get all of the transactions from the bank.  Is there a special way to reconcile these accounts since the statement keeps them separate, except for the new balance total on the statement?

Highlighted
QuickBooks Team

Creating a parent account for credit card

Hi there, @Slfike.

 

You can reconcile the parent account as the transaction from sub-accounts flow to the parent, once you reconcile the parent account it automatically reconciles the sub-account.

 

Here's how to reconcile:

 

Make sure to have your bank statement, review the opening balance and match the balance of your real-life bank account for whatever day you choose to start tracking the account in QuickBooks.

 

1. Go to the Gear icon, under Tools column select Reconcile.

2. On the account drop down in the middle, choose the account to reconcile.

3. The last statement ending date should be your bank statement starts the day after your last reconciliation.

4. Make sure the beginning balance in QuickBooks matches the one on your bank statement. 

5. Enter the Ending balance and Ending date as they're written on your bank statement.

6. Once done click on Start reconciling.

 

Let me add this article on how you can compare your bank statement and QuickBooks and review or change reconciliations: Reconcile an account in QuickBooks Online.

 

You may also want to know on how to adjust a reconciliation, feel free to read this article: How to adjust a reconciliation.

 

You can drop any question here in Community, I'm always here to answer.

Highlighted
Level 1

Creating a parent account for credit card

When I tried to edit the two employee accounts to be sub accounts under the main card quickbooks would not let me do that.  I get this message "You can't change the parent of this account to Main Credit Card because it or its parent is already set up for Online Banking or Web Connect."

Highlighted
Level 1

Creating a parent account for credit card

When I tried to make the two employee cards a sub under the main card quick books would not let me.  I get the following message: "You can't change the parent of this account to Main Credit Card because it or its parent is already set up for Online Banking or Web Connect."

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Moderator

Creating a parent account for credit card

It's good to have you back, Slfike.

 

I'm here to share additional information about this. 

 

We can disconnect the parent account then manually record the transactions under the parent account.

 

To disconnect an account:

  1. On the left panel, select Banking.
  2. In the Banking page, select the credit card account you want to disconnect and click the pencil icon.
  3. Select the Edit account info button.
  4. Put a checkmark on the Disconnect this account on save box.
  5. Click Save and Close.

Once done, manually record the small amounts and interest earned, etc. into QuickBooks.

 

You may check out these articles for reference:

You can tag me directly if you need more help.

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