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Level 1

Credit Card Leftover Balance

I setup a credit card in QB for all business purchases and have been maintaining this account for the past 5 years. I recently paid off the outstanding balance, however while my bank says the card is completely paid off,  there remains a balance in QB of $248.88 for the CC account. I have done reconciliation in the past on this account in QB however have fallen behind. I would rather not go back and do reconciliation for the past 5 years in QB, therefore I'm looking for guidance on how to "clear out"/make a journal entry to take care of the $248.88 remaining balance in QB.

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Best answer 07-18-2019

Best Answers
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QuickBooks Team

Credit Card Leftover Balance

Hello there, @zadawa.

 

I'm here to help you today so you'll be able to clear out your credit card leftover balance in QuickBooks Desktop (QBDT).

 

First, you may need to trace where the remaining balance came from. You can open or double-check the amount on your register.

 

  1. Click on Banking at the top menu bar.
  2. Select Use Register.
  3. Select your account.
  4. Click OK.

Once completed, you may now create a journal entry for the balance. Also, it's highly recommended to consult with a professional accountant to help clear out or handle the amount accordingly.

 

To create a journal entry:

 

  1. Click on Company.
  2. Select Make General Journal Entries.
  3. Fill in the necessary information.
  4. Click Save and close.

In case you have any other QuickBooks concerns in the future, you can check our help-articles: Help articles for QuickBooks Desktop.

 

Let me know directly if you have any other banking questions. I'm always here to help.

View solution in original post

2 Comments
Highlighted
QuickBooks Team

Credit Card Leftover Balance

Hello there, @zadawa.

 

I'm here to help you today so you'll be able to clear out your credit card leftover balance in QuickBooks Desktop (QBDT).

 

First, you may need to trace where the remaining balance came from. You can open or double-check the amount on your register.

 

  1. Click on Banking at the top menu bar.
  2. Select Use Register.
  3. Select your account.
  4. Click OK.

Once completed, you may now create a journal entry for the balance. Also, it's highly recommended to consult with a professional accountant to help clear out or handle the amount accordingly.

 

To create a journal entry:

 

  1. Click on Company.
  2. Select Make General Journal Entries.
  3. Fill in the necessary information.
  4. Click Save and close.

In case you have any other QuickBooks concerns in the future, you can check our help-articles: Help articles for QuickBooks Desktop.

 

Let me know directly if you have any other banking questions. I'm always here to help.

View solution in original post

Highlighted
Level 1

Credit Card Leftover Balance

Journals only work to clear home currency balances. For foreign currency credit card balances in reconciled accounts that show up only in the Balance Sheet, you must use a "Home Currency Adjustment" under Company - Manage Currencies in Desktop versions. Quickbooks claims this will only work with Bank Accounts, not Credit Card Accounts BUT there is a trick to get around this limitation.

 

1) Create two currency adjustment bank accounts (a) and (b).
2) Do two equal and opposite transfers between the two Bank Accounts on different dates using say $1000 as the transfer amount.
3) Observe the currency discrepancy in the Balance Sheet for these two accounts, then increase/decrease the $1000 transfers proportionately to match the Credit Card Balance Sheet currency discrepancy.
4) Now HERE'S THE TRICK: reclassify (a) or (b) from a Bank Account to a Credit Card Account so that it is equal and opposite the original problem amount.
5) Merge the two accounts equal and opposite Credit Card Accounts and the currency discrepancy disappears.
6) Now use the Home Currency Adjustment feature to eliminate the other dummy Bank Account (a) or (b) whichever remains. You may have to play around with the dates and exchange rates at this point. I also merged my remaining account into another zero balance foreign deposit account that remained in the Balance Sheet. It worked!

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