cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

Fixing parent-child CC account

I set up a parent credit card account with 2 child accounts some years back. I downloaded and accepted transactions against the 2 child accounts, but reconciled and paid against the parent account.

 

Seemed more efficient, but now I know it was a bad idea! I now know I should have reconciled and paid against the child accounts.

 

Now the child accounts have large balances that don't exist in real life, because to QB, the balances have never been paid.

 

I'm hoping not to have to go back through the parent account and split each payment to allocate it to the child accounts. I'm hoping there's a way I can make an adjustment.

 

Is there a way to make a one-time adjustment to make the balances accurate without the adjustment amount showing up where it doesn't belong...for example, profit & loss reports?

 

Using QB 2015 Retail, but about to upgrade to 2018. Prefer answer for 2018 version if 2018 changes the answer.

Solved
Best answer May 22, 2018

Best Answers
Highlighted
Community Champion

Fixing parent-child CC account

I see a lot of this.  You can do a year-end journal entry to reconcile this transaction so it doesn’t look weird on the balance sheet.  Just debit the child accounts and credit the parent account to reconcile it out the balance at year-end.  Do it for 2017 and then starting 2018, make sure you enter the payments segmented out to the proper balances on the accounts.

View solution in original post

Highlighted
Community Champion

Fixing parent-child CC account

Sorry @JRV for the slow response.   To correct the balance to actual (which you would want in the parent acct), credit the parent acct the amount to adjust it to actual as of the specific date of the statement, the debit the child (s) accounts to clear them. This transaction should not need any additional account entries as all you are doing is shuffling the balance from the child cards to the parent card.  The balance remains the same.

View solution in original post

6 Comments
Highlighted
Community Champion

Fixing parent-child CC account

I see a lot of this.  You can do a year-end journal entry to reconcile this transaction so it doesn’t look weird on the balance sheet.  Just debit the child accounts and credit the parent account to reconcile it out the balance at year-end.  Do it for 2017 and then starting 2018, make sure you enter the payments segmented out to the proper balances on the accounts.

View solution in original post

Highlighted
Level 2

Fixing parent-child CC account

Thanks, Lynda! I've tended to stay away from Journal entries because I don't know enough about what I'm doing! I will take a look and post again if it's not clear what I'm supposed to do.

Highlighted
Community Champion

Fixing parent-child CC account

The most important things to remember is when you are done, it should have the correct balance on your balance sheet.  I like to roll up (collapse) the report and see the actual balance on the statement in the parent acct.

 

Hope that helps.  If you get stuck, we are here to help you!

Highlighted
Level 2

Fixing parent-child CC account

Please review what I think I'm supposed to do and let me know if this is correct--

 

If child account ending in 1234 has a bogus $5000 balance as of 31 Dec 2017, I'd set the date in the Journal entry to 12/31/2017, turn on "Adjusting Entry", select CC 1234 as the account, and enter a debit for $5000.

 

Then on the next line, select the parent account and enter a credit of $5000.

 

On the next two lines, make similar entries for child account ending in 5678 with a bogus $10000 balance.

 

I would not use the "Reconcilation Discrepancies" account as QB would for an adjustment during reconciliation; correct?

Highlighted
Community Champion

Fixing parent-child CC account

Sorry @JRV for the slow response.   To correct the balance to actual (which you would want in the parent acct), credit the parent acct the amount to adjust it to actual as of the specific date of the statement, the debit the child (s) accounts to clear them. This transaction should not need any additional account entries as all you are doing is shuffling the balance from the child cards to the parent card.  The balance remains the same.

View solution in original post

Highlighted
Level 2

Fixing parent-child CC account

Thanks for your help on my first-ever Journal entry, Lynda!

Need to get in touch?

Contact us