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Senior Explorer **

Best way to fix previous credit card payment

Hi,

Hope someone can help... I started a new company file for a corporation beginning 2018. I entered the CC previous balance and did the same with the bank statements. I have now discovered that the CC statement has a payment from the bank account that is prior to the beginning transactions on the bank statement. I can't reconcile the CC account without this payment. What is the best way to fix this?

Thank you!

Solved
Best answer 06-25-2019

Accepted Solutions
QuickBooks Team

Re: Best way to fix previous credit card payment

Jumping in to help with your question, ctemple.

 

Changing the beginning balance by deducting the transactions from last year will allow you to proceed with your reconciliation for January. 

 

Although, we recommend checking with your accountant for additional advice and how to best handle this type of situation. 

 

Visit us again in the Community if you have other question. 

5 Comments
QuickBooks Team

Re: Best way to fix previous credit card payment

Hey there, @ctemple,

 

I can help you fix the incorrect credit card account balance in QuickBooks Desktop.

 

If the balance in QuickBooks is lesser or does not match with the bank statement, you can enter the missing transaction to correct it.

 

However, if you encounter any discrepancies during the credit card reconciliation due to mismatches of your  transactions. Follow these reference to  rectify the reconciliation issue:

 

Please don't hesitate to let me know if you have additional questions about reconciling, or anything else. Hope you have a wonderful weekend. 

Highlighted
Senior Explorer **

Re: Best way to fix previous credit card payment

Hi Jen_D,

Thank you so much for your reply. I read through articles at the link, but I'm not sure they fix my problem. My problem is that there is a $1500 online payment from the bank to the CC but my beginning bank statement does not have the $1500 payment as I am beginning Jan and the payment was made from the bank statement in Dec. I'm not sure where the money is to come from and where to post to without messing up the balance sheet... If I'm to do a JE, where does the money come from? It can't come from the bank statement since that would cause an issue. Sorry if I'm misunderstanding what you've provided to me - I'm still pretty new at this. I'm reaching out to those with more experience than myself as I'm sure I'm not seeing all the connected dots...

QuickBooks Team

Re: Best way to fix previous credit card payment

Let me welcome you to the QuickBooks family, @ctemple.

 

You don't have to apologize. I can help you straightened out your records. 

 

Creating a journal entry and then performing a mini-reconciliation can help fix the opening balance.


To change the amount of the beginning balance, let’s record the journal entry first. Here’s how:

 

  1. At the top menu bar, choose the Company tab and select Make General Journal Entries.
  2. Enter the date to the correct statement date of your beginning balance.
  3. In the Account column, go to the first line and pick the account you want to record the transaction.
  4. Input the opening balance in the Debit column.
  5. On the second line, choose Opening Balance Equity and click Save & Close.
    jera.png jera1.png

 I suggest consulting an account for recommendation where to put the balancing Debit entry and posting account to use.

 

Since the correct amount is already recorded, you can now reconcile the account. You'll find the detailed steps below:

 

  1. To open the Begin Reconciliation window, go to the Banking menu and select Reconcile.
  2. From the Account drop-down, pick the bank/credit card you’re working on.
  3. The statement date and ending balance information match on what’s recorded on the Journal Entry.
  4. Click on the Continue button.
  5. Go to the Deposits and Other Credits section, pick the Journal Entry.
  6. Hit the Reconcile Now button.
    bra.png bra1.png bra2.png

For additional resources, I’m adding links on how to reconcile and fix incorrect beginning balance in QuickBooks Desktop.

 

If there's anything else I can help you with, please let me know in the comment section below. I'll be right here to assist further, @ctemple.

Senior Explorer **

Re: Best way to fix previous credit card payment

Hi Rasa-LilaM,

Wow, thank you for your prompt and very thorough response - I love answers like that as it helps me to see the how and where - exactly.

But I still think I'm not being very clear - the opening balance I entered is correct per the credit card statement. What's missing is a payment from the December 2017 bank statement that posted on the 2018 credit card statement. Since I started with 2018 bank statements and not 2017, that payment is not recorded in the Jan 2018 bank statement. The beginning balance I entered is the ending balance from the Dec 2017 credit card statement (as shown on the Jan 2018 statement). So the correct procedure is to change the beginning balance to deduct the Dec 2017 payment posted to the Jan 2018 credit card statement? Am I actually trying to remove (or move) the payment by changing the opening balance? That payment along with other payments/transactions on the statement would produce a balanced/reconciled credit card statement for January 2018. Since nothing was entered incorrectly, I want to make sure I'm following the proper procedure. Thank you!!!

QuickBooks Team

Re: Best way to fix previous credit card payment

Jumping in to help with your question, ctemple.

 

Changing the beginning balance by deducting the transactions from last year will allow you to proceed with your reconciliation for January. 

 

Although, we recommend checking with your accountant for additional advice and how to best handle this type of situation. 

 

Visit us again in the Community if you have other question. 

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