How to reconcile negative credit card statement in desktop

No matter the version of QB you should always enter cc charges first before reconciling. It sounds as if you are accustomed to entering a single charge for reconciliation purposes and then editing that charge to the sub-accounts. 

Thoughts and suggestions

Instead of each card being a sub-account, since it sounds like you pay the entire statement and not individually against each card, track each card as a Class and enter all cc charges with the Class to assign it to each employee. You can even use sub-classes.

Or enter the returns or overpayments to each applicable sub-card account for this statement. Credit balances do not appear without a reason. This should then allow you to reconcile to a negative balance

John-Pero,

Thanks for your reply. Guess I needed to put more detail in my question. 

I do enter charges and credits to each sub-account, as appropriate, when they occur. Once the statement comes from the credit card company, I then do the reconciliation to the master account by checking off the associated charges and credits. I click on "reconcile" and get the detail and summary statements plus the bill. Once the bill is generated, I then assign the balances due (or credit) appropriate to each sub-account.

With an overall negative balance (= credit due) for the credit card statement, I am not able to assign the balance to each sub-account since no bill is generated when doing my normal reconciliation process. So, the question remains: what is the best way to do the reconciliation?

- Leave what I've done to the next statement: I entered the ending balance as, for example, -1000

   -  Then, I checked off all the appropriate last statement payments plus the current charges and credits

   - Once it was balanced, I clicked on "reconcile" and saved the detail & summary pages

   - No bill was produced since it was a negative/credit balance

   - Then, when I do the next statement from the credit card company, the beginning balance will be the credit amount of the current statement.

   - Is this way ok for accounting purposes and for the sub-accounts?

- OR

- Is there a better way to do the reconciliation such as needing to undo the original and then reconcile each sub-account and then what happens? OR something else?

Hey, @JodyB1. 

Thanks for joining us again here in the Community. We recommend reconciling the main account and each sub-account. The sub-accounts have their own balances and transactions just like the main account. I also suggest consulting with your accountant to be sure of your accounts and what you'd need to do based on your unique business. Below is an article that may be able to help you along the way. 

• Reconcile an account in QuickBooks Desktop

If you have any other questions, feel free to ask. Take care!

Thanks for your reply Candice C. I am going to undo the reconciliation and then reconcile the sub-accounts and see what happens.

As for the link you sent me, it does not address this topic in a way that I can figure out. It was basic info but did not deal with a master account with sub-accounts and when the credit card statement is a negative (credit due).

Did you ever get a solution to this problem?

I, too, am having the same issues.

Each card is entered as charges come in and each card is reconciled separately, into a bill to be paid later, until they are all reconciled.  

A journal entry may have to be made to clean this up, but I was wondering if you came up with a solution... I had to pay my list bill outright, without reconciling because the balances remain off :(  

Thanks for your help

Rhonda

RhondaL:

Sorry for the delayed response. I did not find a solution. Fortunately, we are small in the credit card area so I entered the credit amount for the "balance" when reconciling the main account and just waited until the credit was used up on subsequent purchases - until we had a balance due as no bill is created when it is a negative amount due.

Once we owed on the credit card account, I put the total due on the main account and then when creating the bill part, I put in what each sub-account owed/was credited in total since the "credit" part started. Not the best way as the sub-accounts did not show the proper amount in each account but even our accountant said ok to do as we did as it was all in the same year.

If you hear of anything else, please share it.

Thanks.

Actually, the best answer I have found and have been using, is to create a journal entry.

In our case, we have several credit cards that are associated with the master account.

Once reconciled, create a journal entry as such:

Debit Accounts payable for the amount (credited) on account

Credit the credit card

When you go to pay bills, select the credit card bill to be paid, then "set credits".  The amount in the journal entry should appear here and will apply towards the payment of the card.

Otherwise, make the journal entry as above, and it will apply for the next credit card bill.

Hope this is clear :D

My redacting is messy, but might help you.