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Level 2

How to reconcile credit card payment using a bank feed

I'm using QB Desktop Pro. I had set up a "credit card" account type for a VISA credit card. When I linked this account via a bank feed to the credit union's credit card, the credit union apparently forces it to change it to a "other current liability" (OCL) account type. After multiple tries, I have found no way to create a "credit card" account type.  (I don't know if the account type matters.)

 

I'm wondering how to reconcile credit card payments with the checking account used to pay off the credit card (OCL) account. When I reconcile, none of the transactions are matched by the bank feed. I have to add the payee and account manually.

 

Every time I've reconciled the credit card so far, the only option has been to select a vendor for the payee, but the credit card (OCL) account does not appear as a vendor. So what I did was create a vendor for the credit card account. I used that vender account as the "payee". Then I chose the checking account as the "account".

I'm guessing that was a mistake because the credit card (vendor) account doesn't seem to be linked to the credit card (OCL) account. The result is that I have a series of monthly payment in the credit card (vendor) register, while every other credit card transaction appears in the credit card (OCL) account.

 

I doing something wrong? I've begun wondering if I'm reconciling from the bank feeds in the wrong order? Or maybe I need to ignore the reconcile for the payments and do a manual transfer between the checking account and the credit card account?

4 Comments
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Level 15

How to reconcile credit card payment using a bank feed

credit card type accounts are something intuit has that are not a normal type of account in accounting, that is why the bank changes the account type

trying to have the bank download make your entries for you is great advertsing, but  it often cause issues, and the overall  accounting is not correct.  The date of a transaction is the date you did it, not the date it gets to the bank.

credit cards should be a credit card type account.
then you enter the payment in the bank account as a check, or EFT transaction and use the CC type account as the expense for the payment.

then in download banking you match the bank payment to the download, not add.

the work flow is enter transactions, download banking, match

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Community Champion

How to reconcile credit card payment using a bank feed

Actual credit card type is preferred and you can try changing the type by editing the account. Otherwise as long as you can record Expense from the OCL then continue on. If it is a proper cc account and you reconcile prior to paying QBO will ask if you want to create a payment check when you are done.

 

Do not confuse accounts in chart of accounts with vendors. They are not always the same. When you pay the cc account you should record it as a check. The payee is the cc company. 

Highlighted
Level 2

How to reconcile credit card payment using a bank feed

Thanks for your reply, John!
Unfortunately, the underlying data elements for credit card account types and other current liability account types seems to be different. This appears to make it impossible (?) to translate an OCL to a CC account type. If you do that, then you can not use bank feeds (well, not from my credit union) and I think some functions of the CC type didn't work correctly when I tried it multiple times.

 

With the OCL account, I am not able to write a check to the CC company. The workaround I've tried is to create a vendor account for the CC company, but then you've got two different kinds of CC entities (the CC as an OCL and an unrelated vendor) and their accounts don't balance to zero at month's end.

 

One solution I can actually use is to "transfer funds" with the banking tools from the checking account to the CC OCL account. Would that be acceptable? Then I could get rid of the fake CC vendor account. 

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Level 2

How to reconcile credit card payment using a bank feed

Thanks, Rustler, for that explanation of why I can't use the credit card type. Makes sense!

 

One thing I really like about using the bank feed to record the transactions is that many of the transactions are expenses and payments that I only find out about from the credit union's accounting. I'd have to go to the credit union website whenever I want to keep track of those and I don't know the actual date of some of those transactions. I agree that the bank dates (instead of the actual purchase/payment dates) are irritating, but only make a significant difference for me near the end of the year.

 

That's also interesting that you suggest using an EFT. If that's the same as using the Transfer Funds tool under the Banking tab, that does work, even with the OCL account type. I do pay the CC bill with an EFT, so maybe that's a good solution. Do you see any problems with this solution?

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