Reconciling 2 credit cards on combined statement

lainscough · ‎February 11, 2020

My client has two Chase Visa credit cards that are on a combined bank statement. In QBO, the two credit cards were set up as individual COA accounts and individual bank feeds. Credit Card #1 is where all the payments and interest come through on the bank feed and has a lot of historical transactions. Credit Card #2 only has actual CC transactions ... no payments nor interest. Credit Card #1 is reconciled though 5/14/2019. Credit Card #2 had its first charge on the next statement. Credit Card #2 also has a large opening balance which I think is incorrect since nothing had been charged on the card. When I look at the Audit History of the opening balance transaction for Credit Card #2, it is a Credit Card Credit and added by Online Banking Administration on July 8, 2019. Is this something that happened when someone connected the bank feed? My main question is how do I reconcile these accounts from the combined statements from 5/14 onwards without messing up all the historical transactions? Thanks!

MariaSoledadG · ‎February 11, 2020

Hi lainscough,

You'll want to set up the first bank account as a parent account and the other as a sub-account.

Here's how:

Go to the Banking menu or Transactions menu.
Select Connect from the landing page, or select Add account if you've already created an account.
Search for your bank.
Click Continue, then enter the username and password you use for your bank's website in the pop-up window.
Select the type of account you want to add.
Select the date range for the download. Some banks download the last 90 days of transactions, others go back as far as 24 months.
Click Connect.

Once you connect to Online Banking, you'll have to make sure how your bank sends the downloaded transactions. If the transactions download to one account, connect only the parent account. If the transactions download to the individual accounts, connect the subaccounts and not the parent account.

If you're opening balance is incorrect, you'll want to delete the balance, please see the steps below.

Click the Accounting menu on the left panel.
Select Chart of Accounts.
Select the account. then click View register.
Click Edit to delete the opening balance.
Click Save.

Once done, you'll want to reconcile the parent account because all transactions will also roll up in the sub-accounts.

For more information, please check Banking and bank feed.

Reach out to us always if you have other questions. I'm always right here to help.

View solution in original post

Kristine Mae · ‎February 11, 2020

Let me ease your confusion, Lainscough.

When connecting accounts to Online Banking, we'll have to know how the bank sends the downloaded transactions. In your case, they're downloaded to the individual accounts. That's why it was correct to connect the credit card accounts to bank feeds.

Although, we still have to add the bank account (parent), then set up the credit card accounts as sub-accounts for reconciliation purposes. You will only have to reconcile the parent account because all transactions in the sub-accounts are rolled up into it.

I know you're worried about the transactions in your bank feeds. It will remain intact since we're only adding the parent account. We're not disconnecting any accounts. I'm here to help you.

First, here's how to add the parent account:

Click Accounting, then go to the Chart of Accounts tab.
Click New.
Fill in the necessary fields, then click Save and close.

Next, let's set up the credit card accounts as sub-accounts. Here's how:

On the Chart of Accounts page, look for the credit card account.
Click the View register drop-down arrow, then select Edit.
Tick the Is sub-account box, then select the parent account.
Click Save and Close.

Then, you can reconcile the parent account.

You can also check this reference about bank or credit card subaccount setup for more details.

If you have additional questions, feel free to drop a comment below.

View solution in original post

MariaSoledadG · ‎February 11, 2020

Hi lainscough,

You'll want to set up the first bank account as a parent account and the other as a sub-account.

Here's how:

Go to the Banking menu or Transactions menu.
Select Connect from the landing page, or select Add account if you've already created an account.
Search for your bank.
Click Continue, then enter the username and password you use for your bank's website in the pop-up window.
Select the type of account you want to add.
Select the date range for the download. Some banks download the last 90 days of transactions, others go back as far as 24 months.
Click Connect.

Once you connect to Online Banking, you'll have to make sure how your bank sends the downloaded transactions. If the transactions download to one account, connect only the parent account. If the transactions download to the individual accounts, connect the subaccounts and not the parent account.

If you're opening balance is incorrect, you'll want to delete the balance, please see the steps below.

Click the Accounting menu on the left panel.
Select Chart of Accounts.
Select the account. then click View register.
Click Edit to delete the opening balance.
Click Save.

Once done, you'll want to reconcile the parent account because all transactions will also roll up in the sub-accounts.

For more information, please check Banking and bank feed.

Reach out to us always if you have other questions. I'm always right here to help.

lainscough · ‎February 11, 2020

These 2 accounts were set up by another bookkeeper long ago. So, I have 2 accounts on the same level, and they have been downloading transactions from their separate banking feeds for quite some time and the feeds are both current. Are you saying I need to create new account that will server as the master, then move both accounts as a sub-account to the new master? Will the bank feeds remain intact?

Or, are you saying use Credit Card #1 as the master and move Credit Card #2 as a sub-account of the master?

My problem is this was set up and has been downloading for some time now and I don't want to reinvent the wheel.

Kristine Mae · ‎February 11, 2020

Let me ease your confusion, Lainscough.

When connecting accounts to Online Banking, we'll have to know how the bank sends the downloaded transactions. In your case, they're downloaded to the individual accounts. That's why it was correct to connect the credit card accounts to bank feeds.

Although, we still have to add the bank account (parent), then set up the credit card accounts as sub-accounts for reconciliation purposes. You will only have to reconcile the parent account because all transactions in the sub-accounts are rolled up into it.

I know you're worried about the transactions in your bank feeds. It will remain intact since we're only adding the parent account. We're not disconnecting any accounts. I'm here to help you.

First, here's how to add the parent account:

Click Accounting, then go to the Chart of Accounts tab.
Click New.
Fill in the necessary fields, then click Save and close.

Next, let's set up the credit card accounts as sub-accounts. Here's how:

On the Chart of Accounts page, look for the credit card account.
Click the View register drop-down arrow, then select Edit.
Tick the Is sub-account box, then select the parent account.
Click Save and Close.

Then, you can reconcile the parent account.

You can also check this reference about bank or credit card subaccount setup for more details.

If you have additional questions, feel free to drop a comment below.

lainscough · ‎February 11, 2020

Thank you so much ... that worked like a charm. Now I'm catching up on reconciliation. Again, a huge THANK YOU!!!

Jaquline · ‎June 04, 2020

Hi I followed the steps, QuickBooks did not allow me to check sub-account because the account is already connected to the bank, how can I solve the problem?

ReyJohn_D · ‎June 04, 2020

Thanks for joining the thread, @Jaquline.

For us to set up the subaccounts, we'll have first to disconnect your current bank connection. Before doing it, ensure to add and match all the pending transactions in the Banking page. This is to prevent deleting any transactions in the For Review tab. Once done, follow the steps below:

Go to Banking on the left pane then choose Banking at the top.
Select the account you want to change then click Edit (pencil icon).
Click Edit account info.
In the Account window, check the box next to Disconnect this account on save.
Hit Save and Close.

Then, you can now follow the steps given by my peer Kristine Mae on how to set up the sub accounts. After, let's reconnect your bank account.

I also want to make sure you can get back to working order always, so I'll be adding this article about the fixes if in case you encounter any bank errors: What to do if I encounter a bank error in QBO?.

Fill me in if you have more questions about managing your banking in QBO. I'll be here in the Community to lend you a hand. Take care always.

bettyjo2 · ‎May 05, 2021

This is not working all it does is create another account.

I have a credit card that has multiple credit cards. When I go to reconcile all the transactions are included in the statement. they maybe separated but still included in the beginning and ending balance. I am pretty sure that Quickbooks has come across this problem so why can I not find good directions on how to make it work, without batch entering all the other transactions from the other credit cards.

DebSheenD · ‎May 05, 2021

Hi, bettyjo2.

Thank you for keeping us updated on your concern. I'll make sure that you can reconcile the two credit cards in one account.

In connecting 2 credit cards in one account you need to make one account a sub-account and connect it to other accounts which is called the parent account. This is because the bank provides the entire balance of the 2 accounts.

You can check this link on how to connect your bank to credit cards.

For future reference, read through this article to learn more about bank or credit card subaccount setup to only show what's relevant to you and your business.

Feel free to reply on this thread if you have additional questions or concerns about connecting bank accounts, We're always here to help.

janbrownbooks · ‎July 27, 2021

If it is done this way does the credit card show up as a parent and sub account on the balance sheet showing negative and positive amounts to equal the net of the total credit card?

RenjolynC · ‎July 27, 2021

Thanks for joining in on this thread, janbrownbooks.

Let me share some insights.

In the Balance Sheet report, both accounts will show up if there are transactions entered on them. With this sample screenshot, I've connected the parent account to online banking. Then, categorized the transactions from the For review page. On the other hand, I manually created some transactions in QuickBooks for the sub-account, and it shows under the parent.

To learn more about the Balance Sheet and other reports in QuickBooks Online, feel free to read these articles:

You can always reach out to me if you have any follow-up questions or other concerns. Take care and stay safe!

davidinmoscow · ‎December 03, 2021

This method does not work if the credit cards are connected to online banking.

QB Support told me the workaround is to disconnect from online banking, then make them subaccounts, then reconnect.

relaxok · ‎January 14, 2022

This does not work for me - even though one CC is the master/parent of the other one in the bank, Quickbooks says I can't set the master as the parent - the error is 'Something is not quite right. You can't change the parent of this account to Credit Card (CORP MASTER) because it or its parent is already set up for Online Banking or Web Connect.'

One has payments and the other has the expenses, so I need both of them connected, plus I dont see how you could have one set as the parent if it's NOT connected'.. it seems like this is the perfect and primary case for sub accounts yet it doesn't work.

JonpriL · ‎January 14, 2022

Let's work together and solve this, @relaxok. How did you connect these accounts to online banking?

Ideally, each credit card subaccounts balance will result in the total balance of the parent account. Learn more about credit card account connected to online banking using this article: The Bank and Credit Card Subaccount Setup.

Since you need both of these accounts' transactions connected to online banking, you'll have to separately add them on your chart of accounts but not as the parent or subaccount setup.

I also suggest contacting your accountant for guidance in understanding each account balance along with working on your reports. Use the link to find someone you want to work with: The QuickBooks Certified ProAdvisor.

You may also read all related references in this article to make sure your account register matches your bank and credit card statements: Use this Guide Anytime you need Help Doing or Fixing a Reconciliation.

If you have any other clarifications or follow-up questions about bank and credit card accounts and transactions, please let me know by adding a comment below. I'll be here to lend a hand. Stay safe!

bambete · ‎January 27, 2023

This was set up correctly by the owner years ago (Parent Co 1st, then each cc acct under as subs) and are feeding correctly. They have never reconciled these accounts and I started by doing a forced reconciliation last year end and reconconciling the year month by month. I match the monthly ending balances on the statement by reconciling, but the balance sheet is still taking the J/E's from the past and so the balances are way off. The accountant keeps making journal entries against the individual accounts AND the parent account which has set all of the balances off from the beginning. He has made several to bring the balances to true at month end which I believe is duplicating transactions that came through the feed.

He closed 2021, so I cannot go back and try to sort it out.

Candice C · ‎January 27, 2023

Good afternoon, @bambete.

Congrats on making your first post here in the Community. Allow me to point you in the right direction to get this handled once and for all.

Based on the details you gave, I recommend contacting our Customer Support Team for further assistance. They'll be able to use a screen share tool to review your account. Here's how:

Go to the Help icon in the top right-hand corner.
Press the Contact Us button/hyperlink.
Enter the question and hit Let's talk.
Scroll down and pick to Get a callback.

It's that easy!

Keep us updated on how the call goes. We're always here to have your back. Best wishes!

muny · ‎April 12, 2023

Hello,

My screen looks nothing like what your instructions say. I have tried 3 times and am frustrated. I must be doing something wrong

Rasa-LilaM · ‎April 12, 2023

Thank you for joining this thread, muny.

I can assist you and provide answers to QuickBooks-related questions. I need more information on what you're going through to make sure we're on the same page. This is also to check if there's any open investigation similar to your concern.

Can you tell us which screen you're looking at? Are you going to reconcile the account or run the Balance Sheet report?

I appreciate any information you can share. Thank you, and have a good one.

gchouinard · ‎March 25, 2024

We have 3 credit cards linking to the master CC account.

In our case it seems that the payments are not allocated to the individual accounts, thus the QB balances are incorrect. Should we unlink the individual cards to avoid this, or is there another way to "pay off" the individual cards?

DivinaMercy_N · ‎March 25, 2024

I'll make sure you set up your accounts in the correct way, @gchouinard.

In QuickBooks Online (QBO), connecting the parent (master CC account) and sub-accounts (three CC accounts) should be based on how the transactions are downloaded.

If the entries download to one account, connect only the parent. If it is downloaded to individual accounts, connect the sub-accounts. This ensures that the balance is correct.

Moreover, I recommend checking your bank statement to check to see if you input and download transactions that are processed in real life. This will also guarantee the balance of your QuickBooks Online (QBO) account is accurate.

Read this reference for more information: About bank or credit card subaccount setup.

Additionally, ensuring you perform the reconciliation process regularly is essential in maintaining the balance of your QBO and actual bank. Just keep in mind to reconcile only the parent account since all transactions roll up into it.

Should you need additional assistance in managing your credit card accounts, please keep me posted below. I'm just a post away to help. Have a good one.

jeanad99 · ‎July 20, 2024

Hi Kristine,

I have a similar issue and am unsure how to resolve it. I took over the books from a previous bookkeeper who was reconciling a solo credit card account. This account was reconciled through 11/8/23 as a solo account. Then, two different sub-accounts were added, and one was removed. I am trying to reconcile the parent account, but the register shows all of the charges and credits from past months, which were already reconciled under the solo account. So I am trying to reconcile the parent account 12/7/24 credit card statement, which shows a previous balance of $18,195.77, yet the reconcile page shows a much higher balance. How can I get this straight so I can continue reconciling through the current month?

Thank you for any help you may be able to provide!

Jeana

Irene R · ‎July 20, 2024

I appreciate your QuickBooks Online reconciling concern here in the Community, Jeana. Let me help with this matter.

As my coworkers mentioned, when reconciling an account in QuickBooks Online (QBO), it's best to reconcile the parent account instead of the subaccount since all of the transactions in the subaccounts appear in the parent account. Choosing the subaccount to reconcile will only show the transactions belonging to it. The transactions from the parent or other subaccounts won't occur. Therefore, modifications made in the sub-account won't reflect in the parent account.

Furthermore, I recommend undoing the reconciliation to correct the discrepancies and then reconciling the parent account. You can follow the steps below to reconcile the parent account:

Go to the Gear icon ⚙, then select Reconcile under Tools.
Choose the account in the Account ▼ dropdown. Ensure that it's the parent account.
Enter the Statement ending balance and Statement ending date.
Once done, click Start Reconciling.

Moreover, I'll be leaving these helpful materials for you to read and gain more knowledge regarding reconciling in QBO:

Additionally, if you encounter problems at the end of your reconciliation, refer to this article to continue to fix them: Fix issues at the end of a reconciliation in QuickBooks Online.

Don't hesitate to reach out here in the Community if you need more assistance reconciling your credit card account, Jeana. We'll be at your service 24/7. Have a great day ahead!

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