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Level 2

Correcting US Bank Credit Card Accounts That Were Not Setup Properly

I am newer to using Quickbooks Online (about 6 months) and am just now realizing that I made a mistake when setting up our bank accounts and credit cards to automatically sync transactions with QBO. US Bank is our financial institution; we have our primary Business Checking Account, a Line of Credit linked to that Checking Account and two business Credit Cards (also US Bank). US Bank has a "Central Bill" account that is linked to both credit cards and the line of credit for total balance and payments.

 

We're a very small startup and don't have many front office or book keeping resources yet. As a result, I'm behind on the books and playing catch-up as I try to get everything cleaned up before year end. As a result of being behind, I am just now realizing that our credit card accounts don't reconcile due to the way the US Bank Central Billing Account works. The cards always show a $0.00 Bank Balance and the total balance only correctly appears in the Central Billing Account.

 

I understand now that the proper way to have set these up was to use the Central Bill Account as the parent/reconciliation account and then to set up the individual cards as sub-accounts. But, unfortunately that isn't what I did and each of the two credit cards was improperly set up as its own individual account. I have several months of frequent transactions on these card accounts that have already been added to Quickbooks Online. So, at this point my questions are:

 

  1. Is there a way to reconfigure these cards into sub-accounts of the Central Bill account without major disruption to the data and transactions that are already in our Quickbooks? When I attempted to edit the accounts and make them sub-accounts I am getting this error message: "You can't change the parent of this account to US Bank Central Bill Account because it or its parent is already set up for Online Banking or Web Connect."
  2. If I can't modify the existing accounts and reconfigure them the way they should be, what are my other options to correct this?
  3. What is the proper way to configure the Line of Credit Account? It acts as just an overdraft account, so money goes into checking and is spent from there. Should this overdraft account also be treated as a Credit Card and sub-account of the Central Bill Account? I had read another Question about this topic, but the experts that weighed in were encouraging the poster to set up their line of credit account as a Liabilities account type. But when I go through Quickbooks connection tool to add that account, it only gives me the option of classifying it as either a Bank Account or a Credit Card. Based on what I read, neither option is correct in this case. Any suggestions?

Thank you in advance for any answers or advice you are able to give me!

3 Comments
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QuickBooks Team

Correcting US Bank Credit Card Accounts That Were Not Setup Properly

Hello @RoboSanLucas.

 

We can move accounts with sub-accounts if the parent accounts and their sub-accounts are of the same type. If not, you'll need to change it for the entire group starting with the sub-accounts.

 

To change the account type:

 

  1. Go to the Gear icon.
  2. Select Chart of Accounts.
  3. Highlight the first sub-account and click on Edit on the top right.
  4. On the Account screen, uncheck the Is sub-account box.
  5. Choose the new Account Type from the menu.
  6. Select the appropriate account detail from the list. You will get a notification that changing the account type may affect your accounting. If you want this change to affect the history and your reports click Yes. To leave the account as is click No.
  7. Click Save.

Continue this process for the remaining sub-accounts, then change the parent account. Once all the accounts reflect the same type we will edit the accounts that were previously the sub-accounts.

 

To make a subaccount:

 

  1.     Go to the Gear Icon and click Chart of Accounts.
  2.     Highlight the first sub-account and click on Edit on the top right.
  3.     On the Account screen, check the Is sub-account box.
  4.     In the drop down list for Parent account: select the desired parent account.
  5.     Click Save.

You can also check these articles for additional reference:

 

Also, it would be best to consult with your accountant about the proper way to configure the Line of Credit account. You can also get in touch with our QuickBooks Support if you need further assistance with the process.

 

Feel free to add a comment if you have any other questions aside from this. We're always here to help. Wishing you the best!

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Level 2

Correcting US Bank Credit Card Accounts That Were Not Setup Properly

Hi Angelyn_T,

 

Thank you for your reply. I am just now getting back around to this. I was able to turn the Central Bill Account into a Credit Card Account Type, as you instructed. But when I attempt to make the individual credit cards Sub-Accounts of that account, I get the following error message:

 

Something’s not quite right

You can't change the parent of this account to US Bank Central Bill Account because it or its parent is already set up for Online Banking or Web Connect.
 
Any advice on how to get around this? I'd like to maintain the automatic transaction downloads from Web Connect.
 
Thanks!
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Moderator

Correcting US Bank Credit Card Accounts That Were Not Setup Properly

Hi RoboSanLucas,

 

Thank you for your prompt response. The error message tells you that once an account is linked, you can't change its parent account unless it's disconnected

 

Once the account is disconnected, the system won't download any bank transactions until it gets reconnected. Please be reminded, that once it's re-linked, QBO will download the last 90 days transactions again. With that, it might give duplicate transactions. You'll need to resort these duplicates by excluding them from your For Review page.

 

Let us know if you have any questions. We're here to help. 

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