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raes88
Level 2

How do I enter the payment I make with my checking account to pay down my credit card?

I am sure this question has been asked many times because it's very common, unfortunately, I do not understand any of the answers.

 

Software: Quickbooks Desktop Enterprise

 

Background

1. I buy stuff with the credit card and rack up a big bill.

2. I make payments from my checking account to pay down the credit card bill.

 

Question

How do I enter and categorize the transaction in step #2?

- Do I set up the credit card company as a vendor?

- Do I write a check from my checking account to the credit card vendor?

- Do I use an expense account to categorize the payment to the credit card? If yes, which account do I use to categorize it? I can see if this is entered wrong it will show double the expenses for the month?

- Also, I see the payments made to pay down the balance on the credit card have come in from the credit card bank feeds  - what do I do with that? Does it change the steps above?

Solved
Best answer January 14, 2021

Best Answers
MichelleBh
QuickBooks Team

How do I enter the payment I make with my checking account to pay down my credit card?

Hi there, @raes88.

 

I appreciate you for providing a detailed concern. I'm here to present complete steps on you can enter the payment in QuickBooks Desktop. 

 

To enter the payments, you'll need to set up credit card accounts. With that being said, the answer to your second and third questions is Yes

 

Here's how: 

 

  1. Go to the Company, then choose Chart of Accounts
  2. Select the Plus icon, then hit New
  3. Pick Credit Card (CC), then Continue
  4. Enter the CC name, then enter the opening balance and date. 
  5. Tap Save and close

 

After that, let's enter the charges to put the amount you owe in the CC account (Other Current Liability).

 

  1. Choose Banking, then hit Enter Credit Card Charges.
  2. In the Credit Card drop-down, select an account. 
  3. Select the vendor from the Purchased From ▼ drop-down. 
  4. Pick a date, then select the items you want to track. 
  5. Tap Save and close.

 

The next step is to pay the charges using a check. Please go to the Banking menu, then tap Write Checks. Complete the required information and tap Save and close. For the complete instructions, check out this article: Set up, use, and pay credit card accounts.

 

For your fourth question, I'd suggest consulting your accountant to help you determine the appropriate accounts to use. This way, you can avoid any duplicates and discrepancies on your books. 

 

Lastly, let's match the credit card transactions on your bank feeds. Don't worry about it because these actions won't change the steps above.

 

But before doing that, make sure you're in the Advance or Express modes. Please go to the Edit menu and select Preferences. Then pick Checking, then hit the Company Preferences tab. See the sample screenshot below for your reference: 

 

 

After that, you can now follow the steps displayed in this article: Add and match Bank Feed transactions in QuickBooks Desktop

 

Once everything is set, please check your register to review all the transactions you've entered and match in the system. 

 

I've attached some pages that help you managing banking transactions, different reports, and other related matters. 

 

 

Let me know if you have follow-up questions. I'm just posting away. Keep safe!

View solution in original post

1 Comment
MichelleBh
QuickBooks Team

How do I enter the payment I make with my checking account to pay down my credit card?

Hi there, @raes88.

 

I appreciate you for providing a detailed concern. I'm here to present complete steps on you can enter the payment in QuickBooks Desktop. 

 

To enter the payments, you'll need to set up credit card accounts. With that being said, the answer to your second and third questions is Yes

 

Here's how: 

 

  1. Go to the Company, then choose Chart of Accounts
  2. Select the Plus icon, then hit New
  3. Pick Credit Card (CC), then Continue
  4. Enter the CC name, then enter the opening balance and date. 
  5. Tap Save and close

 

After that, let's enter the charges to put the amount you owe in the CC account (Other Current Liability).

 

  1. Choose Banking, then hit Enter Credit Card Charges.
  2. In the Credit Card drop-down, select an account. 
  3. Select the vendor from the Purchased From ▼ drop-down. 
  4. Pick a date, then select the items you want to track. 
  5. Tap Save and close.

 

The next step is to pay the charges using a check. Please go to the Banking menu, then tap Write Checks. Complete the required information and tap Save and close. For the complete instructions, check out this article: Set up, use, and pay credit card accounts.

 

For your fourth question, I'd suggest consulting your accountant to help you determine the appropriate accounts to use. This way, you can avoid any duplicates and discrepancies on your books. 

 

Lastly, let's match the credit card transactions on your bank feeds. Don't worry about it because these actions won't change the steps above.

 

But before doing that, make sure you're in the Advance or Express modes. Please go to the Edit menu and select Preferences. Then pick Checking, then hit the Company Preferences tab. See the sample screenshot below for your reference: 

 

 

After that, you can now follow the steps displayed in this article: Add and match Bank Feed transactions in QuickBooks Desktop

 

Once everything is set, please check your register to review all the transactions you've entered and match in the system. 

 

I've attached some pages that help you managing banking transactions, different reports, and other related matters. 

 

 

Let me know if you have follow-up questions. I'm just posting away. Keep safe!

View solution in original post

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