Credit card credits

Hello there, @LWAY1.

I can guide you in properly tracking your credit card credits in QuickBooks.

You can create a Credit card credit item and use it to record the credit given by AMEX. When recording Credit Card Credit in QuickBooks Online, you'd want to make sure to choose the bank account that paid back the credit. This way, you can match them in the For Review tab. Here's how:

1. Go to the +New button.
2. Select Credit card credit.
3. Choose the payee.
4. In the Bank/Credit account field, select the credit card account you received the refund.
5. Select the date in the Payment date section.
6. In the Category details section, select the same expense account of your original purchase.
7. Enter the amount.
8. Click Save and close.

Once done, let's update the downloaded credit adjustment from Uncategorized Asset to the expense account of your original purchase. Here's how:

1. Go to the Banking menu.
2. Select the credit card account by clicking the blue tile.
3. In the For Review tab, locate and select the credit adjustment.
4. Select the expense account in the Category field.
5. Click the Find match bullet.
6. Locate the credit card credit transaction, then click the box before the date.
7. Click Save.

Once you selected a credit card in the line item, both the payment and the charge have the Credit Card Credit. You can read through these articles to learn more about managing your downloaded bank transactions:

• Categorize and match online bank transactions in QuickBooks Online
• Setup bank rules to categorize online banking transactions in QuickBooks Online

Lastly, I'd recommend reaching out to your accountant to help you decide on the best route to take in recording the credit card credits you've received and choosing the accounts impacted.

Fill me in if you have other questions about recording your transactions and reconciling your account. I’m always here to help.

Just dropping by to check on you, @LWAY1.

Were you able to accurately record credit card credits and reconcile it? If you need more clarification on this, just leave a comment below. I'll be sure to get back to you.

Wishing you all the best.

Hi, thanks for the follow up.  My question hasn't been resolved.  The directions you provided were as though there was a purchase & then a return.  That is not the case.  American Express has given us random credits - I can only guess that they are some sort of promotion that's loaded onto our card.  If we ship anything (via UPS, FedEx etc) & pay for it w/ the Amex then they issue a credit of a random amount.  I am asking how to account for this credit.  When I entered it as a credit card credit it somehow creates 2 transactions in QB.  I only have check one for the account to balance when reconciling.  I thought I could delete the extra transaction but then for some reason it throws everything off.

Hi I am an accountant and I deal this type of transaction everyday. My solution is to delete the credit. Then enter a deposit or an expense depending on what the original transaction should be. If it is a payment to the credit card you can enter it as a deposit. If it is a expense coming out of the credit card you can enter it as a expense transaction. In my experience: The only time you use "credit card credit" is when you receive a refund into the credit card or for cash back/rewards. 

Hi, did you ever find a way to resolve this? I am having the exact same issue with my random AMEX credits, and its not from a return or refund of a product, just a promo credit of some sort. I am having the same issue with reconciling as you are. Did you find a way to make it work? 

Thank you, I appreciate any help! 

I cannot get the cc credit to offset the amount due on my credit card bill.  It is extremely frustrating - the solutions stated above do not work when you don't use the banking function in QB. Still struggling. So my immediate solution is to enter a negative expense amount onto the same transaction as the initial purchase just so there is an adjustment to AP and to the expense account. 

This response doesn't apply if you don't use the banking function.  So now what???  I entered a credit card credit but now I can't link it to the bill so it will offset the balance due.

Hi there, @dmzimme.

I'm happy to share insights so you can apply a credit card credit to the credit card bill payment.

Entering a Credit Card Credit won't be applied directly to your open bill. To link a credit card credit to the credit card bill payment, make sure that you recorded a credit card credit under the Accounts Payable category.

Here's how:

1. Go to the Expenses menu on the left panel.
2. Select the Expenses section.
3. Find and click the Credit Card Credit entry to expand the page.
4. From the Category column, choose Accounts Payable.
5. Click Save and close.

Additionally, you can check on how to view vendor transactions to see various information on how you can view your transactions with your vendors in QuickBooks Online.

Lastly, we have this article about how you can run a report with vendor totals that will reflect all payments made to vendors.

You can always reach out to me if you need anything else in applying for credit card credit. I'm here for you. Have a good one.

Hi EZ - I found your reply and it appears this is the case with what I am dealing with. I am reconciling my AMEX and have 4 offer credits and 1 cash rebate. The total amount of credits is $208.44. My reconciliation if off by $208.44. Do I make an adjustment to account for these or do I need to make an income entry?

Hi askogland23!

Thank you for joining us here. Let me assist you in reconciling your Amex account.

You can record the cashback or rebate using the credit card credit option. Simply go to the + New and select Credit card credit. Enter the details needed especially the affected accounts, then tap Save and close.

Ideally, you only need to reconcile it if the transaction is part of your bank statement. You'll want to check this link: Learn the reconcile workflow in QuickBooks. This contains different articles on how to balance your account in QuickBooks Online.

I also added this link: Customize reports in QuickBooks Online. This will show you how to personalize, filter, or sort the reports in QuickBooks Online to get the right data you need.

Leave a comment again here if you have other concerns. Take care!

Hi, I have the same issue, we received a rewards redemption amount to the credit card so I did a credit card credit, but I get the same issue as mentioned above. My only option is "Bank Deposit", not deposit. When I click on Bank Deposit, under "Account", my only options I can choose are chequing account, cash, or assets. I tried to add the credit card under the "add new" button but there's no option for it, only bank or current assets. I use QBO plus, do you know any other way that could work to fix this problem? Thank you.

Glad to see you here in the Community, @ChrisM6. I can guide you on how you can add your rewards redemption to your credit card in QuickBooks Online.

When using Bank Deposit, you cannot see the credit card option under Account since it is only allocated for the bank and assets.

I can walk you through the steps on how to enter Credit Card Credit in QuickBooks Online (QBO). 

Here's How:

1. Click the + New icon, then select Credit Card Credit.
2. Select a payee and a credit card account from the drop-down.
3. Fill in the necessary information and enter the amount.
4. Click Save and close.

You can also check this article for future references: Record your payments to credit cards.

Just leave a comment below if you have any additional questions. I'm always here to help. Have a great day!

Thank you for your reply Kevin_C. I already added the credit card credits for the rewards redemption, what happened is that it created two entries, one a payment received, and the second one an expense, so the expense keeps showing up on my bank reconciliation summary sheet as an uncleared charge. I have four of them since January 2021 and would like to get rid of them. If I delete the expense, the payment received disappears as well, so I have no choice but to leave them both on. What I did do when I pulled up the credit card credit to fill out, on the bank/credit account box, I put in the credit card that received the amount, and in the category box I put in the same credit card, that might be the issue that's causing the charge to appear, but I don't know what else to put there. Do you know what else I should use in the category box?    

I have attached a file so you can see what I mean.

Hi @ChrisM6,

I'm glad to see you here in the Community. Allow me to chime in and provide additional assistance regarding the credit card credit in QuickBooks Online.

Yes, it might be the issue why the charge is appearing on your reconciliation report. Please refer to the original credit card expense entry to determine which category should be reduced by the credit.

It affects how your transactions reflect in the system. To review the category, you can follow these steps:

1. Click the Gear icon in the upper-right corner.
2. Select Chart of accounts under Your Company.
3. Find the account and press View register. 
4. View the original credit card expense entry. 
5. Check the category.

For additional reference, I've attached a link you can use about how to handle credit card accounts as cash-basis statements in QuickBooks: How credit card accounts are treated for cash-basis statements.

Fill me in if you have additional questions about managing your credit cards in QBO. I'm always here to help. Take care always. 

My company uses QB Desktop, so it might be different for you, but when I get these Special Offer credits from AMEX I record them as CC Credits and for the expense account I use 4009-Rebates and Refunds.

No problems!

This doesnt work for me and I also use desktop version. When i enter a credit card credit and expense it to a new account i created called rebates and credits i just end up having it show up on the charges side and not on the payments and credits side when reconciling. It needs to be a credit not a charge. 

What works for me is to go to the register and just enter the credit card for payee and enter the amount as "payment" instead of charge and then for the account, enter the bank account that is getting the money back (ie: your checking account). Then it will only end up showing up on the payments side and can be reconciled with no issues. 

I'm having the same issue.  I use QB Desktop, and when I enter a Refund/ Credit (from the credit card vendor to the account "Visa Card"), the system automatically records an identical Purchase/ Charge.  This cancels out the credit card rewards credit and messes up the credit card reconciliation.  How do you just enter a Refund/ Credit that is not directly tied to a purchase?

In QB Desk Top, how do I record a credit on the statement they give us each month.  It's a tiny percent of what  we spent with them for the month.  

Hi,

I'm also struggling with the same issue.  I do not download from the bank, I do not see the review tab and I'm using QB Plus.  Can you guide me through this.  It would be much appreciated.

Hello team,

This seems to be an issue with everyone and now I am encountering the same thing. 

I tried adding that amount to AP as per instructions above, then tying the Credit Card Rebate to that AP JE but it is still showing a balance under the AP on the balance sheet. I played around it in different ways and couldn't solve it.

Can you please advise how to resolve this issue ?

Thanks

I am having trouble with Credit Card Redemption Credits. We receive a redemption credit on our credit card almost every month. I tried posting it as a credit, putting it under Other Income:Redemption Credits. But when I do that, it does not show up when I go to reconcile the credit card statement. What am I doing wrong? I am using Quickbooks desktop, NOT QB online. Can you help me?

This is inelegant, but it works. Reconcile your account until you are off by the amount of your credit. Click reconcile. When it says that you're off, go ahead and let it create an adjustment (general journal entry). Go to that journal entry in your account and reassign the account the credit should go to (like "Cash reward"). Voila. 

This is inelegant, but it works. Reconcile your account until you are off by the amount of your credit. Click reconcile. When it says that you're off, go ahead and let it create an adjustment (general journal entry). Go to that journal entry in your account and reassign the account the credit should go to (like "Cash reward"). Voila.

You could also add the general journal entry prior to reconciling. I just find this simpler.