Bank Feed show Transfer to Uncategorized and Action Shows Transfer -> now I'm stumped. These are to pay bills paid through personal Visa. Can I transfer to Undeposited?

Credit card payments are downloaded as Transfers, pondball.

We're unable to transfer it to Undeposited Funds. Here's how you can record your cc payments instead:

Transfer the payment:

1. Go to Banking, then select Banking.
2. Select the account you need to transfer the payment from.
3. Select the transaction, then select the Pay down credit card radio button.
4. Select the Transfer account ▼ drop-down menu and select the account you want to send the transaction to.
5. Select Confirm.

Alternatively, you can transfer the payment with the Record as transfer option:

1. Go to Banking, then select Banking.
2. Select the account you need to transfer the payment from.
3. Select the transaction, then select the Record as transfer radio button.
4. Select the Transfer account ▼ drop-down menu and select the account you want to send the transaction to.
5. Select Confirm.

Once you're done with the transfer of the transaction, you need to match it with the new account.

1. Select the Recognized tab and locate the transaction.
2. Under the Action column, select Match.

If you have additional questions, don't hesitate to leave a reply. 

Hi MaryLureenM. Thank you fro your quick response. 

I will respond to the First Solution first.

• In Banking->Banking I have only one account (Bank) right now. I did not attach a Visa account or Personal Account

• I see a Button with the title "Record as Credit Card Payment" - this I assume is the same as Pay down credit card?

• I don't see a Transfer Account drop-down menu though

• There is an option to select Credit Card, but I don't have a credit card attached to my setup (I normally pay for business related Visa transactions out of the business chequing account and the remainder gets paid out of a personal banking account.

• There is also a choose supplier option, however the Visa Bill usually has between 5 and 10 supplier option so I would need to split this transaction amongst them all.
What am I missing?

Hi MaryLureenM. Thank you fro your quick response. 

I will respond to the First Solution first.

• In Banking->Banking I have only one account (Bank) right now. I did not attach a Visa account or Personal Account

• I see a Button with the title "Record as Credit Card Payment" - this I assume is the same as Pay down credit card?

• I don't see a Transfer Account drop-down menu though

• There is an option to select Credit Card, but I don't have a credit card attached to my setup (I normally pay for business related Visa transactions out of the business chequing account and the remainder gets paid out of a personal banking account.

• There is also a choose supplier option, however the Visa Bill usually has between 5 and 10 supplier option so I would need to split this transaction amongst them all.

I have included a screenshot of what I see at my end
What am I missing?

Looking at the alternative method you suggest may be easier?

• ie Record as Transfer

• Which would I choose (it sits on uncategorized asset right now) - choices I see being viable are either a) Current Account or b) Undeposited Funds, or do I need to set up a dummy Visa account somehow to receive the funds, then

• split off the transaction to cover the various suppliers we paid off using our Personal Visa

• I won't have any of the suppliers bills entered yet in QBO so I am assuming the Recognized tab will not recognize anything that can be matched. If that is the case do I need to enter bills prior to trying to match the transaction?

As you can probably tell I'm relatively new to QBO, am am getting more and more confused by the day... having downloaded and viewed hundreds of videos

Allow me to join in this thread and provide the steps on how to record your credit card transactions, pondball.

Yes, you can choose the Record as credit card payment option for the transaction. Before clicking the Add button, choose the bank where this payment is made from in the Select bank account field.

If you select the Categorize option,  you need to choose an expense account from the Category field. You can create a new expense account if you don't have one to track what you've spent.

After adding it to your bank, you can check the entry through the Chart of Accounts. Let me show you how: 

1. Click the Gear icon at the right top.
2. Pick Chart of Accounts under the Your Company column.
3. Locate the bank account where you've added the credit card payment, then click View register.
   
4. If you need to modify the transaction, simply click it, then select Edit.

Also, you can only match downloaded transactions from your bank if you've manually created an expense or credit card transaction in QuickBooks.  I've added this article for future guide: Categorize and match online bank transactions in QuickBooks Online.

Let me know if you need anything else by commenting below. I'll be right here to help ensure you're able to correctly record your credit card transactions in QuickBooks.

Hi MaryLandT

Thanks for the reply and the images... they really help me navigate (visual learner).

The first image you show asks to choose the bank account, however my screen only asks to choose the credit card (which I don't have).

The next image asks for one expense account only and I need to split the transaction into several different accounts so this doesn't look like a solution.

Can I not do the transfer as a Record as Transfer, then use Undeposited Funds as the transfer account...

then add bills to QBO such that I can then group them as being paid in the same deposit?

Hello, pondball.

Using the Undeposited Funds account might mess up the accounting. Ideally, this is used for customer payments. So instead of using that, I have a solution to help you easily record the personal payment on your business expenses. 

Generally, you'll want to use a clearing account (this serves as a vessel to move the funds) and an Owner's or Partner's equity account (serves as your personal Visa account). 

First, create the clearing account: 

1. Go to Accounting, then choose Chart of Accounts.
2. Click the New button.
3. Set the Account Type as Bank.
4. For the Detail Type, set it as Cash on Hand.
5. Set the Name as "Clearing account."
6. Once done, click Save and Close. 

Next, create the equity account if you haven't already done it yet. On the account creation window, select Equity as the Account Type. For the Detail Type, set it as Owner's Equity (or Partner's Equity). Click Save and Close afterwards.

The next step is to categorize the downloaded bank transaction under the the clearing account:

1. Go back to the Banking page.
2. Find and select the transaction.
3. Click the Categorize radio button.
4. Choose the clearing account we've created under Category.
5. Once done, click Confirm. 

Technically, we have already moved the funds from the bank account (deducting its balance) to the clearing account (increasing its balance). The next step is to record the purchases made through your Visa account. This is where the equity account comes into play. You'll want to use a journal entry to accomplish this:

1. Click the + New icon, then select Journal entry.
2. Choose the expense accounts that were associated with the credit card transaction.
3. For expense account's amount, enter the total payment under Debit.
4. Add the vendor's name under NAME. 
5. Choose the equity account, then enter the same amount under Credit.
6. Once done, click Save and close.

Finally, pay off the expenses and zero out the clearing and the equity accounts. So instead of creating a bill, you'll want to move the funds using an Expense:

1. Click the + New icon again, then choose Expense. 
2. Under Payment account, select the clearing account.
3. For CATEGORY, choose the equity account then enter the same amount.
4. Add memo or other important details.
5. Once done, click Save and close. 

You can do the same steps should a similar situation happen in the future. Though, this might be easier if you do the principles in this article: Pay for business expenses with personal funds.

After dealing with the transaction, are you ready to reconcile your bank? Please check out the workflow guide here. 

I can help you again if you have other concerns. Leave the details here and I'll get back to you as soon as possible. Take care out there. 

Thanks JamesPaul

Couple of small questions.

• Regarding the Clearing Account. I have a Petty Cash account already. Do I also set up a Clearing Account for the purpose of my Credit Card question?

• The images posted were very fuzzy and I have had some difficulty reading them, even after downloading and magnifying. (not a question, just an observation)

• In the Journal Entry, point 4, I will have more than one Vendor that would have been paid in monthly payment from our business account to our Credit Card. Not sure how to deal with this.

Larger Question:

Can I take a different route with the Credit Card, as follows:

• Connect our one Credit Card to QBO.

• I am assuming this will then download our monthly CC activities to QBO, just as the Bank Feed does from our account. Will it also show as a CC-Transfer?

• Do I then move this to the CC Card first or is there something else to be done?

• Can I Exclude all CC transactions that were 100% personal at this point so that they do not get put into QBO? These were all paid for through the personal account.

• The remaining transactions would then be either 100% business expenses, or as we are a home base business, only a percentage of the transaction charge.

• Can I allocate only a part of those transactions to business (they would be part of the Bank Feed <Transfer> and the remainder which are personal to our Owner's Equity, or is there another account I should set up? Again, the personal transactions (both 100% and partial%) were already paid for from our personal account.

Seems this would save a lot of entries back and forth as during busy seasons we have a good number of shipping transactions, that I could have automatically be assigned using Rules.

Sorry to have so many questions. Just looking for an easier/better way to deal with our Credit Card transactions without getting another card.

Thanks for getting back to us, pondball.

Yes, you need to set up a clearing account to move funds between two accounts.

Connecting your credit card for online banking is a great idea. However, downloaded transactions will depend on how they're posted to your bank. If they're transferred to the credit card account, then you can Transfer in QuickBooks.

Once you have those bank statements on the Banking page, you can create a rule that will automatically categorize your entries. Also, excluding transactions will prevent you from adding entries to QuickBooks.

Meanwhile, you need to set up an equity account to track the money you invest or draw from a business. Check out this article for instructions: Add an owner or partner to your books.

You just need to make sure all accounts needed for your transactions are entered in QuickBooks. Doing this helps you move funds from one account to another.

Keep me posted if you have follow-up questions by commenting below. I'm always right here to help you.

Hi MaryLandT Thanks for replying.

Re: "However, downloaded transactions will depend how they're posted to your bank. If they're transferred to the credit card account, then you can Transfer in QuickBooks." All transactions are posted to the Credit Card. My practice has been to download the credit card csv file into a spreadsheet, isolating all the business related expenses (as per allowed %'s), then pay that total amount from the Business bank Account. The remainder is a lump sum payment from our personal account. So, no details are entered in our Bank Account, just the lump sum payment which is the same amount that appears in the monthly Bank Feed as Transfer.

Something like Shipping (normally from one company only) would certainly become more time efficient with a rule. I suspect I can allocate a lump sum payment towards the Shipping account to cover this? Or do I have to split off all the transactions in the one entry?

And, if I can exclude the non business transactions from each month's credit card feed that would be great. Does this feed happen automatically or is this something I have to do by importing the QBO download from our bank account?

So, to clear the remainder of the CC entries that were not 100% business, is that where I transfer them to owner's equity account... but, they were already paid for through a personal account, so were not, in fact ever paid for by the business. How would I deal with this. ie Hyrdo of $100 on the CC would be $36 business as paid for by the business, and $64 personal as already paid for by the owners from their personal account.

All the other accounts are already in place for the most part. Can I add any others as I go or should I set all up prior to working with this CC account?

Thanks for coming back, @pondball. I'm here to address all your concerns. 

As an insight, you can only create a rule to speed up transaction categorization. While we're unable to create a rule to exclude transactions automatically, you can check the boxes for these transactions to Batch exclude them on the For Review tab. 

Here's how: 

1. Go to the Banking menu, then select the Banking tab.
2. Select the For Review tab.
3. Put a checkmark on the boxes of the transactions to exclude, then select Exclude. 

For more details, please read through this article: Exclude a bank transaction you downloaded into QuickBooks Online. 

For your credit card transactions that were paid through a personal account, you'll need to record it in QBO, then reimburse the company. Here's an article with more detailed instructions on how to do it: Pay for personal expenses from a business credit card or bank account.

Concerning whether you have to split off all the transactions in one entry, I'd recommend contacting your accountant. They can help you decide and to make sure that your books are accurate. 

For future reference, read through this article: Set up, use, and pay credit card accounts. It helps you learn about creating credit card credit under the owner's equity. 

I'll be here if you need further assistance or additional questions. Take care. 

Thanks katherinejoyceo

That was my error in suggesting to set up a rule for exclusions. I see that I should not have included that comment in the same paragraph. Sorry!

Certainly being able to have the CC transactions downloaded instead of inputting individually will be a bonus, especially once I set up a rule for this item.

Sorry for all the questions but relating to this

---

you can check the boxes for these transactions to Batch exclude them on the For Review tab. 

Here's how: 

1. Go to the Banking menu, then select the Banking tab.
2. Select the For Review tab.
3. Put a checkmark on the boxes of the transactions to exclude, then select Exclude.

I would do that when the CC is connected and those CC transactions are showing and before doing anything else with the CC feed, correct?

I don't have any personal transactions that were paid for from business funds, so I shouldn't have to record them in QBO should I? The only transactions of concern are the ones as previously noted that are to be split between Business and Personal, and they were paid from the respective Business and Personal banks accounts already, with only the Business $$ showing in the Bank Feed.

As long as I can allocate the $$ from the CC bank feed to the various accounts that the payment covered I should be ok. The only issue would be if I had to allocate only one account to that Feed.

I've checked out most articles but did not have the last one linked. I'll check that one out as well. 

Hi pondball, 

Yes, that's correct. You'll need to connect your credit card account in QuickBooks to automatically download the transactions in your bank feeds. Here's how:

1. Go to the Banking menu, then select the Banking tab.
2. Click Connect Account if this is your first time connecting. Or select Add account or Link account if you've already created one.
3. Search for your bank. You can connect most banks, even small credit unions
4. Click Continue, then enter the username and password you use for your bank's website in the window. Follow the onscreen steps to connect. Your bank may require additional security checks. It may take a few minutes to connect.
5. Choose the credit card account you want to connect to.  
6. For each account you're going to connect, select the matching account type from the dropdowns. These are accounts on your chart of accounts in QuickBooks.

Once done, you can now see your most recent transactions from your bank. 

To clarify, you don't need to record personal transactions if you don't have any paid through your business. You'll want to check out this article for more insights: Mixing business and personal funds.

Let me know if you have additional questions. I'll be here to answer them for you. 

Show me a credit card account or a bank statement with my name on it shown at money was getting transferred

To me