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dudleytut
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.  

Solved
Best answer February 17, 2020

Best Answers
MarsStephanieL
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

20 Comments
KlentB
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.

dudleytut
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!

 

MarsStephanieL
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

dudleytut
Level 1

Creating a parent account for credit card

Thanks for your help!

 

Slfike
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.

Joesem M
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.

 

 

Slfike
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?

Joseph_A
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.

Slfike
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."

Slfike
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."

GlinetteC
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.

Avioaccounting
Level 1

Creating a parent account for credit card

Hello,

I have the same problem and the solution above works, but does this mean i cant use the banking link feature anymore. Will i always have to manually enter transactions as my main credit card has all the payments going into it and the sub credit cards act as separate entities even though they are sub accounts of the main credit card. lastly i do not want to separate the credit card payment manually and have to do the math of how the bank apply's it to all three of my credit cards.  

Tori B
QuickBooks Team

Creating a parent account for credit card

Thanks for joining the thread, @Aviaoaccounting. 

 

As mentioned by my colleague above, the parent account is disconnected and created as a reconcile account, because it doesn't get the individual transactions, but it gets the statement for all accounts' transactions. From your example provided, the parent account receives the payments that cover the employee account balances. If you want to use a Bank Feed for the parent and sub-accounts, you'll want to reconcile it all on one statement and then use a 3-tier account setup. 

 

The 3-tier set up will be:

 

  • The parent account- which has no connection but is used to reconcile all the accounts.
  • The Sub-parent- which is actually the primary card that has your main credit card payments going into it. (Can be connected to Bank Feeds)
  • The sub-account of the sub- parent account- which will include all of the respective employee cards. (Can be connected to Bank Feeds)

Here's a screenshot of the set up:

 

 

Let me know if you have additional questions or concerns. I'll be here every step of the way. As always, feel free to reach out to the Community any time. Take care!

amanda71
Level 2

Creating a parent account for credit card

I know this thread is old but if I try to reconcile I just reconcile the dummy parent account and all the transactions will be in there correct?  How about the payments that are made? Do they apply to each credit card so each one has a zero balance?

Nick_M
QuickBooks Team

Creating a parent account for credit card

Hi amanda71.

 

Thanks for dropping by the Community today. I'm happy to help. You are correct, the parent account would be the one you want to reconcile, because all transactions in the sub accounts are rolled up into it. You can find additional information on the process and much more in the following articles:

If there's anything else I can help with, feel free to post here anytime. Thanks for stopping by and I hope you have a great day. 

dudleytut
Level 1

Creating a parent account for credit card

Hi Amanda,

My case was a little more complicated.  We bank with Chase and the transactions come over a little differently. If you bank with them, please let me know and I'll try to explain how I reconcile the credit card.  I learned from my online QB accountant.

 

AmandaLJ
Level 2

Creating a parent account for credit card

Hi! I am curious what the workaround is. I am having similar issues with parent / sub accounts.

RCV
QuickBooks Team
QuickBooks Team

Creating a parent account for credit card

Thanks for checking in with us, AmandaLJ.

 

When connecting your credit card or bank account, we have to determine how your bank sends the downloaded transaction. We'll need 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.

 

Also, we need to reconcile the parent account since all transactions in the sub-accounts are rolled up into it. 

You can find additional information on the process and much more in the following articles:

 

If you encounter the error 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." Just follow the troubleshooting steps provided by GlinetteC and Tori B to get this sorted out.

 

Just in case you need further assistance about this one, feel free to contact our Customer Support Team. They'll pull up your account in a secure environment and help you with this one. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one.

 

Feel free to visit our Banking page for more insights about managing your bank feeds.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. You have a good one. 

NJPHTX
Level 1

Creating a parent account for credit card

Hi, can you explain the process you use for Chase?  I am trying to decide if the parent-sub account-child account would work. Thanks

ReymondO
QuickBooks Team

Creating a parent account for credit card

Hey there, @NJPHTX.

 

Are you trying to set up a bank or credit card account with multiple subaccounts with your Chase bank account? 

 

If so, the steps provided above are applicable to your bank account. You can create a parent account and then have each individual card set up underneath as a subaccount in QuickBooks Online. This way, it would be easy for you to reconcile your accounts in QuickBooks.

 

To view transactions specific to one of the subaccounts, run a report for that subaccount. To see all of the transactions for the parent account and for each subaccount, run the report at the parent level.

 

If you still need to set up the parent and subaccount,  simply follow the steps provided by my colleague MarsStephanieL. Or else, check out this article for complete guidelines: How to create subaccounts to keep your chart of accounts organized.

 

Additionally, here are other things you can do to keep your accounts in order:

 

 

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one.

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