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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.

Solved
Best answer July 18, 2019

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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

4 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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Level 1

Credit Card Leftover Balance

Can I ask a different but credit card related question .... ?  I admit I'm using an older version, QB Pro 2013 but it's perfect for the personal home expenses my wife and I use to track and budget our spending.  Recently when reconciling a credit card we started getting a popup box that asks two questions, "would you like to cut a check for the balance" or "create an invoice to pay later".  The note says we can hit cancel to pass this and leave the amount in the register.  However no matter what we select, QB freezes and I have to exit the program and go back in.  The reconciliation holds and is saved but we have to do this every time we reconcile a credit card account.  Any way to turn off this option or does anyone know why it's freezing?  We do not have any online subscriptions, no payroll, no POS, just the simple desktop program.

Highlighted
QuickBooks Team

Credit Card Leftover Balance

Say no more, @Afreije74. I'm here to help you get your QuickBooks back up and running.

 

We have a tool hub that will help us fix common QuickBooks Desktop issue like yours. Let's first download and install our tool hub and then run the QuickBooks Diagnostic tool from the hub. 

 

Here's how:

 

  1. Close QuickBooks.
  2. We recommend you download the most recent version (1.4.0.0) of the QuickBooks Tool Hub. Save the file on your computer desktop.
  3. Open the file you downloaded (QuickBooksToolHub.exe).
  4. Follow the on-screen steps to install and agree to the terms and conditions.
  5. When the install finishes, double-click the icon on your Windows desktop to open the tool hub.

Then, let's run the diagnostic tool.

 

  1. Open the QuickBooks Tool Hub if it's not already open.
  2. In the Tool Hub, select Installation Issues.
  3. Select QuickBooks Install Diagnostic Tool. Let the tool run. It can take up to 20 minutes.

Once done, restart your computer and try reconciling your credit card again. You can learn more about the different solutions when QuickBooks stopped working at this link here: What to do if you can't open QuickBooks Desktop.

 

I've also added this article about clean install QuickBooks Desktop just in case you need to uninstall. It has detailed steps that you can follow throughout the process. Uninstalling also helps in adding new install files but won't remove your company file. 

 

Please know that we aim to get your reconciliation process complete as quickly as possible. Stay in touch if you need help with anything else. We're here to lend a hand. Take care and have a good one. 

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