cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

I use Quickbooks 2015.  Last month, I made an overpayment on the credit card.  I did this by adjusting the Amt to Pay column in Pay Bills to the amount actually paid, which was in excess of the amount listed on the statement.

 

This month, I have received the bank statement, which reflects the overpayment correctly.  But when I attempt to reconcile the credit card, it shows the payment on last month's statement to be only the amount that was owed: not the overpayment amount.  As a result, the reconciliation is off: by the amount of the overpayment.

 

For the life of me, I cannot find any way to get Quickbooks 2015 to acknowledge that I have a credit on the reconciliation screen.  Quickbooks 2015 shows the open balance when I go to the vendor center, but not in the reconciliation screen.

 

The Vendor Center shows a payment from the checking account in the correct amount (with overpayment), even though the bill itself was for only the amount on the statement.

 

Obviously, I could force a reconciliation by telling Quickbooks to correct the amount.  But there ought to be some way to get Quickbooks to reflect the credit on the account so that I do not need to force a reconciliation.

 

Any help would be greatly appreciated.

 

Sincerely yours,

 

Ariel

Solved
Best answer May 21, 2020

Best Answers
Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Good evening, @arielrogson.

 

Allow me to chime in with a way to fix your Accounts Payable balance.

 

Based on all the information you provided about recording your credit card payment and reconciliation, I recommend editing your bill amount in QuickBooks. This will fix the record that shows the payment for your credit card account. Then, the account will reflect the correct amount coming out of the checking account to pay your credit card bill.

 

An alternative option is to delete the bill and payment altogether, then write a check for the full amount of the credit card payment to show you paid the total amount and the extra $217.43. 

 

Before you edit anything, I suggest creating a back up of your company file. You may also want to consult with an accountant to make sure you recorded everything correctly. This article about setting up credit card accounts might be helpful in the process too.

 

I'm only a reply away if you have any other questions. Best wishes.

View solution in original post

23 Comments
Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Welcome to Community, @arielrogson.

 

You can go to your Vendor payment and make sure that the amount was not changed and must appear as to how much it was paid for.

 

Run a Vendor Balance report,  overpayment should appear on the vendor balance since reconciliation will all depend on what you created on your bank register.

 

Here's how to run a vendor balance report:

  1. On your QuickBooks Desktop, go to the Reports tab.
  2. On the Reports tab drop-down select Reports center.
  3. On the Report Center page, under the Standard tab choose Vendors and Payables.
  4. Select the Vendor Balance report.

For your future reference let me attach these articles about reconciliation and reports customization:

Let me know if I can be additional help, have a great day and take care!

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, Joseph_A.

 

The report shows that the full amount (including the overpayment) was paid to the vendor.  But when I try to use the reconcile option to reconcile the credit card statement (and generate the new bill), it only reflects the amount due, not the amount paid.

Highlighted
Moderator

Reconcile a credit card with an overpayment in Quickbooks 2015

It's nice to have you back here, arielrogson.

 

Let me share some insights about reconciling an account in QuickBooks Desktop. There are a few things we can check to see why transactions don't reflect on the reconcile page option.

  • Incorrect Statement date. We can open the transaction to see if the date is correct when creating them in QuickBooks.
  • A Transaction might be cleared after the statement end date. We can go to the register to double-check. You'll see a checkmark once it's reconciled.

I'm including these articles you can check out about handling and fixing reconcile workflow in QuickBooks Desktop:

Please keep me updated on the results. I want to make sure everything is taken care of for you.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, GlinetteC.

 

Sorry it took so long to respond.  To give you more information about the problem, I realized I would have to post some personal data, so I wanted to explore solving the problem without doing that first.  But at this point I don't see any other solution than to post the data and explain.

 

Although the problem is rearing its head during reconciliation, I don't think the problem actually lies with the reconciliation flow.  I think that something got messed up earlier, like QuickBooks not correctly handling the overpayment.

 

I hate to post screenshots, but I think I adequately redacted the pictures.  I have attached screenshots of the Vendor Center screen, the Reconciliation screen, the Vendor Balance detail, and the Accounts Payable Aging.

 

As you can see from the Vendor Center (page 1 of the screenshots), the bill was in the amount of $3882.57, and the payment was for $4100.  (In case it matters, the fact that both numbers are negative is consistent with all prior transactions on this account.)  The Vendor Balance detail report (page 2 of the screenshots) is consistent with this information.

 

But as shown by the Reconciliation screen (page 3 of the screenshots), the payment is listed as only $3882.57, not $4100.  Thus, the reconciliation screen shows a difference between the cleared balance and the ending balance of $217.43.  If Quickbooks would acknowledge that I paid $4100 rather than $3882.57, the reconciliation would be fine.

 

My best guess is that while QuickBooks transferred the full $4100 from the checking account to "Accounts Payable", QuickBooks only transferred $3882.57 from "Accounts Payable" to the credit card account, which is why QuickBooks thinks the account was only paid in full, not overpaid.  The Accounts Payable Aging report (page 4 of the screenshots) shows $217.43 as being 31-60 days past, which I think is consistent with my guess.  But I am at a loss as to how to fix the problem cleanly and correctly.  

 

I personally do not care if the fix is somehow in the reconciliation screen or with the transaction in the Vendor Center.  I just want things to balance as they ought.  For example, I could force a reconciliation and add a comment that the $217.43 was due to QuickBooks not properly recording the overpayment: but I want to avoid reconciliation errors if I can.  Or I could adjust the statement balance for the reconciliation by $217.43: but I am concerned that then QuickBooks would say I owe $217.43 less than I actually do on the credit card, which just pushes the error into next month (and makes it that much harder to fix).  Or I could add some entry to the General Journal to correct the balance to the credit card: but I am concerned that if I do this wrong (which is likely: I don't play around with the General Journal unless asked to do so) I would make things even worse.

 

Thanks in advance.

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Thanks for providing additional information about your concern, Ariel.

 

I'm here to share some information about how overpayment works in QuickBooks.

 

Once we create a bill payment, the program will not transfer the amount to the A/P account. It will deduct the amount of your A/P instead. Since you've overpaid your vendor, we'll have to record a deposit and create a bill credit for the overpayment, then link both of them. This way, we'll be able to reconcile your credit card account correctly. I'll guide you how:

 

First, we'll have to enter a bank deposit of the vendor check that will affect your A/P account:
 

  1. Select Banking from the top menu bar, then choose Make Deposits.
  2. Click the Received from drop-down menu and select the vendor whom you overpaid.
  3. In the From Account drop-down, select the appropriate Accounts Payable account.
  4. In the Amount column, enter the actual amount of the overpayment.
  5. Click Save & Close when you're done.

Then, let's create a Bill Credit for the overpayment:
 

  1. Select Vendors from the top menu bar, choose Enter Bills.
  2. Tick the Credit radio button.
  3. Enter the Vendor name.
  4. Select the Expenses tab and enter the accounts on the original bill.
  5. Enter the overpayment in the Amount column.
  6. Click Save and Close.

Once done, we can now link the deposit to the bill credit:
 

  1. Select Vendors from the top menu bar, choose Pay Bills.
  2. Check the deposit that matches the vendor check amount.
  3. Select Set Credits and apply the bill credit you created earlier, then click Done.
  4. Click Pay Selected Bills, then select Done to complete the process.

I also encourage reading our Reconciliation Guide to help keep your QuickBooks accounts accurate.

 

In case you need to track your vendor expenses and accounts payable, we can customize your vendor reports based on your business needs.
 

If I can be of any additional assistance, please don't hesitate to insert a reply in the comment section. Stay safe and healthy.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, KlentB.

 

I think I follow what you asked me to do, but something still isn't right.  I have attached new screenshots showing how things look now.

 

As can be seen from the first screenshot, I entered the credit as you suggested.  Since you didn't say what account to record the Deposit To, I left that by default to the checking account.  This seems likely the current source of difficulty, since my checkbook now reports a deposit in the amount of $217.43: should the deposit have been to the vendor account?  Followup question: if it should have been to the vendor, will I create any problems by going back into the Make Deposit screen and changing where the deposit was sent?  Or do I need to go through and void everything I did and start the fix over?

 

The second screenshot shows the current reconciliation screen, which shows a $0.00 deposit/credit, not the $217.43 credit you were aiming for.  This is backed up by the third screenshot, which shows that the bill payment was zeroed out.

 

So we're getting closer, but I'm not there yet.

 

Thanks in advance.

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi there, @arielrogson.
 

Thanks for adding screenshots. I've checked all of them and figured out that you've deposited the amount to a different bank.
 

You'll need to deposit them to the same bank you recorded the initial payment. This way, it'll balance out your official bank statement.
 
You can check out this article that will help fix reconciliation issues: Fix issues when you're reconciling.

 

Please let me know if you need further assistance. I want to make sure that your books are accurate. Have a great day.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, LieraMarie_A.

 

How do I deposit the funds to "the same bank"?  First, all my accounts are at the same bank.  Second, I cannot select the credit card account to deposit the funds into.  So how do I get this right?

 

Thanks in advance.

 

Ariel

Highlighted
Moderator

Reconcile a credit card with an overpayment in Quickbooks 2015

As we are following the troubleshooting steps provided by KlentB on the previous response, I've noticed something on your screenshot.

In the Make Deposits screen, the Deposit to (bank account) field and the FROM ACCOUNT column are correct. However, you did not assign the vendor name in the RECEIVED FROM column. Make sure you add the vendor name so it will affect your vendor balance.

 

From there, you can continue the steps provided by KlentB above. You can also reach out to your accountant if you require additional assistance in doing it. They know what's best for you and your business setup.

 

Let me know if you need anything else.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, JamesDuanT.

 

Sorry about the confusion.  The vendor name IS in the Received From field.  I redacted that information, along with other information that did not seem pertinent to the question I was asking.  It is not visible because the redaction color is white.

 

Ariel

Highlighted
QuickBooks Team
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Thanks for providing in-depth details on your concern, arielrogson.

 

In QuickBooks Desktop, we can deposit funds into a separate bank account. To deposit the amount to your credit card account, just enter it in the From account drop-down.

 

Here's how:

 

  1. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
  2. Add a new line under the payment you want to put into a second account which is your credit card account.
  3. In the From account dropdown on the second line, select the credit card account. Then enter the amount you want to put into the second account as a negative value. You can also enter the entire amount or part of it.
  4. Tap Save & Close once done. 

For more details about making bank deposits, check out this article: Record and make Bank Deposits in QuickBooks Desktop.

 

Then, proceed to the steps provided by my colleague KlentB on how to create a Bill Credit for the overpayment and link the deposit to the bill credit.

 

If you need further assistance with this one, please reach out to our Customer Support Team. They'll pull up your account in a secure environment and help you reconcile the credit card overpayment. 

 

Here's how:

 

  1. Click the Help icon on the top menu. 
  2. Choose QuickBooks Desktop Help
  3. Tap Contact us.
  4. Select Search for something else and enter your concern in the Tell us more about your question: field. 
  5. Tap Search
  6. Choose Start a Message or Get Phone Number to connect with our support. 

I've got a link here where you can find articles about reconciliation: Reconcile your bank account with QuickBooks.

 

Keep me posted if you need anything else in QuickBooks. Wishing you and your business continued success. Keep safe always. 

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, RCV.

 

I wish I had more control over where the deposit is sent: perhaps that is an option in more recent versions of QuickBooks.  But I am using QuickBooks 2015 Desktop, and I cannot enter the credit card or the vendor name as the destination for the deposit.  Please see the attached image (redacted entries are not relevant to this question).

 

Thanks,

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, there @arielrogson.

 

Let me walk you through on how to deposit money to your credit card. If you're trying to make a deposit to your bank account, you can use the Make Deposit transaction. However, if you're trying to transfer money to your credit card account you can create a Credit Card Refund/Credit instead.

 

Follow these steps on how to create a credit card refund/credit. Here's how:

 

  1. Go to the Banking menu
  2. Select the Enter Credit Card Charges tab.
  3. Choose the Refund/Credit option beside the Ending Balance on the page.
  4. Enter the information needed in the field.
  5. Click the Save and Close button.

 

I've also provided a link that will guide you to reconcile your account: Learn the reconcile workflow in QuickBooks.

 

If you need further assistance, please don't hesitate to leave a message in the comment section. I'm always here to help. Have a good one!

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, Rejeil_O.

 

My problem does not appear to be with a credit on the credit card.  My problem is that I overpaid the credit card a couple of statements ago, but QuickBooks is not showing the overpayment as attached to the credit card.  As a result, when I try to reconcile the most recent credit card statement, I have a discrepancy in the exact amount of the overpayment.  Adding a second credit does not seem the correct solution to the problem: the credit is already floating around somewhere in QuickBooks (see the earlier screenshot with the Accounts Payable report).  The solution I need is how to get QuickBooks to recognize the earlier overpayment so that only the actual amount owing is the target of the reconciliation.

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Thank you for getting back here, @arielrogson.

 

I appreciate you providing more details about your concern. Allow me to share some information. Based on the previous screenshots you've shared, it shows the payment of $4100 as Bill payment check. 

 

To check if the $4100 is correct. Go to the Register of your Credit Card and look for this bill payment check. It should show $4100 from there. 


Also, you had mentioned that you're having issues with your Credit Card. Based on your screenshot, the Bill payment check account seems to be a checking account.To fix this, make sure that the Bill payment check account used your credit card. Because if you've used an incorrect account, the payment will not show up on your reconciliation.

 

Furthermore, here is a helpful article that can guide you with reconciliation:Reconcile an account in QuickBooks Desktop

 

If you have further questions, feel free to leave a reply below. I'll be around to help you. Stay safe and take care always, arielrogson.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, DivinaMercy_N.

 

You hit on something I hadn't known before: the credit card register shows only $3882.57 paid, not $4100.00.  Is it safe for me to just overwrite the $3882.57 with $4100.00?  Or will that create other problems (such as information not balancing relative to Accounts Payable, which shows the overage)?  If that is not the solution, how do I get QuickBooks to reflect the actual $4100.00 paid?

 

By the way, the credit card IS paid from a checking account, and the checking account register reflects $4100.00 as being paid to the vendor (although the Account is Accounts Payable).

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

I'll make sure that you can reconcile your account, Ariel.

 

We can overwrite the amount of the payment from  $3882.57 to $4100.00 so that the whole amount would reflect in QuickBooks. Before doing so, let's create a backup of your company first. This way, we'll be able to restore your data in case we ever run into problems.  

 

Additionally, please know that updating the amount of the payment will affect the balance of your AP account. I encourage reaching out to your accountant in performing this process to avoid confusion and discrepancies.

 

You can read our Reconciliation Guide to help keep your QuickBooks accounts accurate.

 

In case you'll need to track your accounts payable, we can customize your vendor reports based on your business needs.

 

As always, you can find me here if you need more help in reconciling your account. Have a pleasant day ahead.

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, KlentB.

 

OK, I took the preliminary step of changing the value in the credit card register, and now the reconciliation balances.  So that partially solves the problem.

 

But as you note, the Accounts Payable account still shows $217.43 as being owed to the credit card bank, even after changing the value in the credit card register.  You suggest reaching out to my accountant: but I am my own accountant, so that doesn't really work. :-)  Is there a way to easily clear the "debt" from the Accounts Payable account somehow?  After all, the money in question has already been paid: QuickBooks just decided not to reflect that fact (which seems silly to me: there is no reason I cannot have a credit with a vendor).

 

For now, things are still unchanged, until I know how to handle the Accounts Payable situation as well.

 

Thanks in advance,

 

Ariel

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Hello, Ariel.

 

I'm glad your reconciliation is now balanced for your credit card account. Let's work together to figure out how to handle the -$217.43 Accounts Payable balance. 

 

Since there's an overpayment, then there's bound to be a refund from the credit card provider. The general rule of the thumb is that we record what happened in real life. Did you follow-up with the provider regarding the refund from the $4100 overpayment? You can double-check your checking account's statement to see if this is the case. 

 

If they issued the $217.43 overpayment back to your checking account, then we can create a vendor refund using a deposit. Here's how: 

 

  1. Go to Banking, then select Make Deposits
  2. Select your checking account (where you paid the credit card balance from) under Deposit To.
  3. Under Received From, select the credit card provider's vendor profile (technically, they're the ones who issue the refund). 
  4. Under From Account, select Accounts Payable
  5. Under Amount, enter 217.43.
  6. Add memo, and other important details if needed.
  7. Once done, click Save & Close

When you're ready, you can start reconciling your checking account. I've been following this thread since your initial post. Here's what will happen after following the previous discussion and the steps I provided: 

 

BankRecon1.PNG

 

If they haven't issued a refund yet, we can leave the Accounts Payable balance as it is until they do so. 

 

If you need more help regarding other tasks in QuickBooks Desktop, you can check our articles here. Ensure the topic is set as "QuickBooks Desktop." 

 

I'm always here to work with you again if you have other questions about handing vendor transactions. You can also post other concerns. I'm more than willing to listen. 

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, jamespaul.

 

Unfortunately, your answer includes a false assumption: that "there's bound to be a refund from the credit card provider".  Credit card companies rarely do this: the assumption is that you will incur additional charges that will offset the overpayment.  In fact, that is exactly what happened: the statement shows the amount owing AFTER FACTORING IN the credit from the overpayment.  So, when they say I currently owe "$500.00" (or whatever the actual number is), what they are saying is that I actually charged $717.43, but only owe $500 because I overpaid them by $217.43.  No "refund" of any sort was actually issued, either from the credit card back to me, or by direct deposit back into the checking account.

 

You also say that "[i]f they haven't issued a refund yet, we can leave the Accounts Payable balance as it is until they do so".  But they have not done so to date, nor will they in the future.  So what remains in the Accounts Payable balance is not going to ever be offset by anything the credit card company has done or will do.  I need to take some other action to clear the Accounts Payable entry.

 

Thanks in advance.

 

Ariel Rogson

 

Highlighted
QuickBooks Team

Reconcile a credit card with an overpayment in Quickbooks 2015

Good evening, @arielrogson.

 

Allow me to chime in with a way to fix your Accounts Payable balance.

 

Based on all the information you provided about recording your credit card payment and reconciliation, I recommend editing your bill amount in QuickBooks. This will fix the record that shows the payment for your credit card account. Then, the account will reflect the correct amount coming out of the checking account to pay your credit card bill.

 

An alternative option is to delete the bill and payment altogether, then write a check for the full amount of the credit card payment to show you paid the total amount and the extra $217.43. 

 

Before you edit anything, I suggest creating a back up of your company file. You may also want to consult with an accountant to make sure you recorded everything correctly. This article about setting up credit card accounts might be helpful in the process too.

 

I'm only a reply away if you have any other questions. Best wishes.

View solution in original post

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

Hi, Anna S.

 

OK, it looks like what you proposed (to change the amount of the original bill) works, for the most part.  At least, it solves the credit card statement reconciliation problem.  I still have $217.43 floating around in the Accounts Payable report, but at least I (and my tax preparer) will know what it means and that it can be legitimately ignored.

 

It's not a perfect solution, but it's good enough for now.

 

Thanks!

 

Ariel

Highlighted
Level 1

Reconcile a credit card with an overpayment in Quickbooks 2015

QuickBooks has a Reconcile utility that can reconcile your company’s credit card account with the card’s paper statement. The Reconcile utility is a part of the Banking menu and opens in its own separate window. Reconciling your credit card account every time you receive a paper statement will help you catch any irregular, incorrect or missed transactions, which can contribute to an inaccurate account balance. Additionally, the program will automatically open the option to pay the bill after you complete the reconciliation process

Need to get in touch?

Contact us