Reconciling Corporate Credit Card with multiple subaccounts

Hello, jeanl.

I'm here to help you correct the reconciled credit card accounts and ensure the balances are zeroed out. 

You'll want to undo the reconciliation for the subaccounts. Then, reconcile the main account. 

To undo the reconciliation for the subaccounts: 

1. Go to the Banking menu, then select Reconcile. 
2. Select the credit card subaccount under Account.
3. Click the Undo Last Reconciliation button.

Do this until all of the subaccounts have been unreconciled. 

Also when you pay the balances for your credit card subaccounts, the parent account will be affected. This will zero-out the balances in your Chart of Accounts. If you need help paying your credit card accounts, you can check this article: Set up, use, and pay credit card accounts.

After ensuring all the credit card payments are recorded correctly, you'll want to reconcile the main account. Simply select it on the Begin Reconciliation window. 

If you need help with the process, you can check this article: Reconcile an account in QuickBooks Desktop.

Do you need to add more transactions to your accounts? Or perhaps would you like to run your reports? Our articles can definitely help you out. They have guides with just about anything you can do in QuickBooks. Feel free to visit them in our articles list page. 

Did you encounter any other difficulties in QuickBooks Desktop? I'm here to help! I'll leave this thread open just in case you need assistance with them. 

You are suggestion I undo reconciliations for all of 2020? Is there not an easier way to simply zero out the parent account an start fresh for 2021?

You are suggesting to undo all (years) of reconciliations. Is there not an easier way such as zeroing out the parent account balance and starting fresh for 2021?

Hello again, @jeanl.

You can create a Journal Entry to make it easier for you to zero out the parent account balance so you can start fresh for 2021. But before doing so, I recommend contacting your accountant for guidance on which account receives the debit and credit transaction. 

To create a journal entry, here's how:

1. Go to the Company menu at the top. 
2. Choose Make General Journal Entries.
3. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
4. Click Save and Close. 

I'm just a post away if you should have any questions or need further assistance. Have a good one.

Hello.  ** Attached is a screenshot of the main and sub accounts **  I have been reconciling the main parent account but it leaves the balance on the sub credit card accounts.  When I pay the corporate credit account I pay the main account.  So I reconcile the main account which shows those payments and all the transactions of the sub accounts.  I cannot seem to figure out how to get the sub account balances to zero when reconciling the main account.  The payments made to the main account do not apply to the sub accounts.  Any advice for me?

I appreciate you for joining in on this thread, RBin.

I'll share some information with you about your reconciliation. You'll want to reconcile your parent with the sub-account since all the balances are showing for each sub-account.

Also, I suggest checking your bank statement and ensuring that all the transactions match that of the other accounts.

You may visit this article to know the reconciling workflow: Learn the reconcile workflow in QuickBooks.

You can utilize this article to know more other steps about how to fix beginning balance issues in QuickBooks: Fix beginning balance issues in QuickBooks Desktop

Post again here in the Community for further QuickBooks-related concerns. Have a nice day!

Thank you for replying to my question.  I do in fact reconcile the parent account.  I can only reconcile one account at a time, that I know of, so I don't think I understand your statement "reconcile your parent account WITH the sub-account".

I am attaching another screenshot photo to this comment.  It is from my balance sheet.  I notice that QBs is generating a negative entry at the bottom to zero out the sub-accounts when I reconcile the parent account.  So it seems the balance sheet is at least accurate.  Though all the sub-accounts keeping a permanent balance and forever growing does not seem to be a clean way to do this.  Is there a different way that is more appropriate?

Thank you for replying to my question.  I do in fact reconcile the parent account.  I can only reconcile one account at a time, that I know of, so I don't think I understand your statement "reconcile your parent account WITH the sub-account".

I am attaching another screenshot photo to this comment.  It is from my balance sheet.  I notice that QBs is generating a negative entry at the bottom to zero out the sub-accounts when I reconcile the parent account.  So it seems the balance sheet is at least accurate.  Though all the sub-accounts keeping a permanent balance and forever growing does not seem to be a clean way to do this.  Is there a different way that is more appropriate?

Thanks for getting back in this thread, RBinTheBooks. 

The sub-accounts will impact the parent account balance. If the parent's balance offset the balance of the sub-accounts, then the parent will zero out while there's a balance on the sub-account.

Before starting the process, make sure to create a backup copy of your company file. If changes occur, having a backup copy allows you to restore it to undo the changes.

To rectify this, you can create a bank transfer to move the balance from the subaccounts to the parent account. As a result, this will zero out or move some balance in the subaccounts. Here's how:

1. Go to the Banking tab, then click Transfer Funds.
2. In the Transfer Funds From field, select the subaccount.
3. From the Transfer Funds To section, pick the parent account.
4. Enter the amount you need to move in the Transfer Amount box.
5. Once done, click Save & New. Then, perform the same process on the other subaccounts.

However, I highly recommend seeking assistance from your accountant to ensure that your books are accurate and to avoid messing up the data. They'll be able to provide more expert ways of dealing with this situation. If you're not affiliated with one, you can use our Find an Accountant tool to look for a Pro-Advisor near your area.

For your future reference, you can check out this article to guide you in reviewing your accounts to make sure they match your real-life bank statements: Reconcile workflow in QuickBooks.

Please know that you can always get back to this post if you have additional questions. I'm always here to lend a hand. Keep safe!

Hello. Did you ever receive a valid response to fix this issue? I have the same problem.... the endlessly growing sub account balances on the credit card sub accounts, with the zero balance to the main account (or payments applying to the main account only). Did you ever come across a way to address this? I did not understand the Pro response provided to you.

thank you in advance. 

Hello there, @HMoore.

The parent account balance will be impacted by the sub-accounts. The parent will zero out while there is a balance on the sub-account if the parent's balance exceeds the balance of the sub-accounts.

Create a backup copy of your company file before beginning the process. If changes are made, having a backup copy makes it possible to reverse the changes.

You can correct this by setting up a bank transfer to transfer the balance from the child accounts to the parent account. It will therefore zero out or change the balance in the subaccounts. See the steps provided by my colleague Kevin_C.

However, to ensure that your accounts are accurate and to prevent tampering with the data, I strongly advise getting help from your accountant. They'll be able to offer more knowledgeable solutions for handling this circumstance. Use our Find an Accountant tool to find a Pro-Advisor in your neighborhood if you're not already connected to one.

Additionally, here is an article to guide you in reconciling an account: Reconcile an account in QuickBooks Desktop.

Let me know if you have questions about bank accounts in QuickBooks Desktop. I'm always here to help. Have a great day.

I am having this exact same issue in Quickbooks Online. Has there been any luck in getting this sorted out for anyone? And also instructions on how to move forward so that it doesn't keep happening?

@joshvb @HMoore 

You can clear the balances by making a journal entry:

Debit each cc sub-account for the balance in each account.

Credit the total to the cc account with the negative balance for the total.

That should zero out each sub-account as well as the account with the negative balance.  

Thanks for the response! There isn't a negative balance to adjust. The account balance on the parent account is accurate. It looks like all of the expenses are rolling up from the sub accounts to the parent account but whenever credit card payments are made on the parent account, it doesn't roll down to the sub accounts. So the balances on the sub accounts have just kept growing and growing over the past two years while the main account has stayed accurate with no issues in reconciling.