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DannyG
Level 1

Credit Card Charges vs Bills, and Paying Credit Card

Hi,

I’m looking for some help with Credit Card Charges, Bills and Credit Card Payments and have a couple questions.  This is how our previous bookkeeper was dealing with this which I think is  incorrect and a double entry...

Scenario...

- they would enter 3 credit card charges with the correct items (fuel) and correct vendor (Shell), say $50 each, so $150 total (I get this as it’s created the expense and allocated the payable to the credit card)

- when the credit card statement came in, they would create a new bill from the credit card vendor for the $150 and then pay THAT bill.

1) Isn’t this entering the bill twice seeing as how the expense was already entered with the credit card charge?

2) Shouldn’t they just enter the credit card charge and then write a check to the credit card for payment?

 

Would appreciate any help with this :)

 

 

3 Comments 3
JessT
Moderator

Credit Card Charges vs Bills, and Paying Credit Card

Hi Danny!

 

It's okay to enter a bill as long as they use the credit card account in the Expenses section of the bill. The bill will serve as payment and will transfer the balance of the credit card account to the bill, as shown below.

 

 

You may continue to do this process, or you may not enter a bill at all because the date of that bill may not be the same as the date of the actual credit card payment. However, you can reconcile your credit card account as the amount is right.

 

Let me know if you have more questions mind. Have a good day!

DannyG
Level 1

Credit Card Charges vs Bills, and Paying Credit Card

Thanks Jess T,

 

...but if they entered the 3 charges as credit card charges for that month, and then entered another bill for those same charges, have they not been entered twice?

Catherine_B
QuickBooks Team

Credit Card Charges vs Bills, and Paying Credit Card

Thanks for keeping us posted, DannyG.

 

Entering a bill to pay the credit card charges won't duplicate your expenses. Just ensure that the account used in the bills is the credit card account as mentioned by my colleague. 

 

Writing a check is also an option if you immediately paid these charges. Here's how:

 

  1. From the Banking menu, select Write Checks.
  2. Enter the bank account you want to use for paying the credit card from the Bank account dropdown.
  3. Select the date of your payment and the name of whom you'll pay the charges.
  4. Enter the amount of your payment. 
  5. Select the Expenses tab and then select your credit card account.
  6. Click Save & Close.

For more details on how to set up and record your credit card payments, check out these references:

 

I'm just around the corner if you have other questions. Take care!

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