Credit Card Payments

Hello @DPKH2024 ,

To handle this, record the lump sum payment in QuickBooks and split the expense by categorizing the purchases accurately. Allocate merchandise costs to Cost of Goods Sold (COGS) and the other store needs to appropriate expense accounts.

For any balance, create a liability account to track what’s still due on the card. This ensures you capture each expense correctly while staying aligned with her lump sum payments.

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@DPKH2024  

I disagree with @kabel1657 .  First, you never record the purchase of merchandise for resale to COGS - you assign the purchase to an inventory asset account.  COGS is used to match the cost of the inventory to the same accounting period as the revenue it generated.  That's why it is called cost of goods sold.  You don't expense the cost of inventory when you purchase it or when you make a cc payment, you record the COGS expense when the inventory is sold.    

Second, payments made on a credit card are never expenses, the payment reduces the credit card (cc) liability balance.  Assign the cc charges to the appropriate expense or inventory asset account when made.  Then, when you record the payment on the cc, assign the payment to the cc liability account.  The cc payment reduces both cash and the cc liability balance so it doesn't matter if they pay the balance in full or some other amount.