Hi @goldenkrustgarne. Help has arrived.
To verify, are these transactions imported into QuickBooks? If so, we can correct the formatting of the credit card accounts or entries by following these rules:
However, if your transactions are downloaded from your credit card account that is connected to QBO, ensure that the account type is Credit Card. Increasing balance may be seen as an error when a credit card account is added as a bank account in your chart of accounts.
If this is the case, you can edit the account type to change it to Credit Card, here's how:
That's it. I'm adding these articles for the detailed steps on how to connect credit card accounts and how to tune imported credit card transactions:
Once the credit card transactions are in the correct balance, you can then categorize and match them with existing records in QBO.
Let me know if you have other concerns about handling your credit card transactions in QuickBooks. I'm always ready to help you more. Stay safe and well!
Hi, thanks for your quick reply. The CC account which is downloaded from bank was setup as CC in thee Charts of Account. I compared the setting to the article and another company I have which was setup in 2020.
What else can I check to see why the data is not treated correctly in QBO?
Thank you for getting back to us and providing additional information, @goldenkrustgarne.
Let's review your credit card payments to ensure it's treated correctly.
Before we start, please know that credit card payment is a liability, and it does reduce your liability balance in the Balance Sheet report.
Since your credit card account is connected to QuickBooks, you'll need to ensure you categorize the credit card transactions to the correct account. If you aren't sure what account to use, I encourage seeking help from your accountant for more guidance. This way, your credit card payment will be posted correctly.
Also, may I know which part or report did you see the increase in credit card payments? Any additional information would be greatly appreciated.
I'm adding this article to learn more about recording credit card payments: Record your payments to credit cards.
Our doors are always open to help you again if you have any other concerns or follow-up questions about how credit card payments are reported. Have a pleasant day ahead, @goldenkrustgarne.
Hi, the pattern I noticed today is payments are treated as a debit and charges are treated as credit to the credit card account. This is happening for transactions downloaded from my bank and the same if I entered a manually record. Today I entered a payment and noticed the pattern. Is there a bug or configuration setting that needs to bee corrected?
I am having the same issue. For example opening balance 1/1/21 on my general ledger for the CC was -$2506.91. When I go to transactions for that card and review them it does not matter if I do match, transfer or credit card payment from my Bank. If I pay $100 and review it the general ledger balance increases to -$2606.91.
So basically when I categorize a payment it increase what is owed and if I categorize a charge the balance goes down. I have read 20 articles on here and nothing works. I have disconnected the bank, reconnected, added manual transactions, etc.....and they all do the same thing.
I'm here to help you why credit card payments increase when you categorize them. Basically, Credit Card balances are Debt. The Balance you owe gets increased by entering the Expense charges that you used that card for. Then the balance goes down by the payments you make.
You can refer to this article for more information: Record your payments to credit cards.
Also, since the credit card is connected to QuickBooks, let's ensure when you review the credit card transactions you put them in the correct accounts. Regarding the accounts you'll have to use or the proper way to categorize it, I suggest consulting an accountant. This is to ensure that your recordings are accurate and with no discrepancies.
In addition to that, I've shared a link to help you reconcile your accounts so they always match your bank and credit card statements.
I'll be on the lookout for your reply and to further assisting you if you have other questions. Wishing you and your business continued success. Have a great day!