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Anonymous
Not applicable

How do I resolve differences in credit card payment?

 
12 Comments
Regina_Lend_A_Hand_Accounting
Level 9

How do I resolve differences in credit card payment?

Make sure you are not missing an transactions in the credit card register and verify whether finance charges were charged, and if so, that they came through the bank feed. You may have to enter your credit card finance charges or annual fees manually, and you may have to import in any missing transactions.

Anonymous
Not applicable

How do I resolve differences in credit card payment?

What happened....In September the credit card bill was overpaid by $345.75.   In October the amount due (and paid) does not align with the receipts and charges for that month.   Trying to figure out how to 'reconcile' the difference.

 

Anonymous
Not applicable

How do I resolve differences in credit card payment?

What happened....In September the credit card bill was overpaid by $345.75.   In October the amount due (and paid) does not align with the receipts and charges for that month.   Trying to figure out how to 'reconcile' the difference.

 

FritzF
Moderator

How do I resolve differences in credit card payment?

Hello there, @Anonymous.

 

Thanks for reaching out to us here in the Community. I'm here to share some information about credit card payment in QuickBooks Online (QBO).

 

When your customer pays you an amount more than what they actually owe, the system automatically creates a credit. It will be tagged as unapplied payments. You can apply this to your new invoice(s) or the existing ones for October.

 

To apply to an existing invoice, here’s how: 

 

1. Locate the existing invoice.
2. Click Receive payment.
3. Under Outstanding Transactions, select the invoice(s) that you want to apply the credit to.
4. Scroll down, then select the credit that you want to apply on the invoice(s).
5. Select Save and close.

 

QBO also has a feature that will automatically apply the credit to new invoices. To turn it on, here's how:

 

1. Go to Gear icon at the top, then pick Account and Settings.
2. Choose Advanced.
3. Click the Pencil icon in the Automation section.
4. Put a checkmark on the box before Automatically apply credits.
5. Select Save, then Done.
6. Create the invoice. The credits will be automatically applied as payment upon saving the invoice.

 

You may check out this article for more information:Apply a credit from an overpayment. On the other hand, if you haven't applied the credit for the overpayment that was made last September, you can process a refund check to offset any open credits they would like paid out. For your reference, please refer to this article for further guidance: Refund customers for overpayments.

 

Those steps should help you correct the amount due and paid for the month of October. Then, you can go ahead and continue the reconciliation.

 

Please let me how it goes by leaving a comment below. I'd be glad to answer should you have any follow-up questions. Take care and have a good one.

qbteachmt
Level 15

How do I resolve differences in credit card payment?

Like this: "In September the credit card bill was overpaid by $345.75.   In October the amount due (and paid) does not align with the receipts and charges for that month."

 

The Payment against the credit card Account Type in your file should already be showing. There is no Bill; you get a statement. Let's review:

You Spend using the card, so you enter the individual expense charges as against the card and Not From Checking, and each date and payee name. You get an account activity statement which you use to Reconcile the Credit Card Account in QB. Do Not make a bill to pay later. You already have CC as a type of liability. Every time you use the credit  card, you take a micro-loan from VISA or Chase or AMEX and the Credit Card type of account in this file shows you went more into debt with each purchase. This is already Debt or Liability. Hiding it in AP is just moving it to a different Debt, which is not properly reporting.

 

You have the running debt balance from the individual dates of purchase. The Payment against the card balance is a Check Expense or Transfer, and the only expense detail is that credit card account type. This is not when you paid for Office Supplies. AMEX doesn't sell Office Supplies; they are your lender.

 

So, the payment from last time should show in the credit card account, and that might even leave that account register as negative (overpaid) until you start entering the individual new charges (purchases on that card in the new reporting cycle).

 

Hope that helps.

Regina_Lend_A_Hand_Accounting
Level 9

How do I resolve differences in credit card payment?

There are some good "long answers" that have been or will be provided to you on this matter, some are not related to the question you "actually" asked, but many will include  some valuable insights. However, I will give you the shortest answer possible. "Reconcile to the ending credit card balance as of the last statement ending date after you have confirmed that all the transactions that did occur have been recorded in the credit card register". In QuickBooks Online, we do not enter credit card charges "manually" as bills to pay later, the charges come through the bank feed of the connected credit card account and you categorize the individual expenses at that time. The payments on the credit card accounts also come into the bank feed of the connected account.

Anonymous
Not applicable

How do I resolve differences in credit card payment?

Thanks, unfortunately, this has nothing to do with an invoice.  It is a credit card that we paid more than was due.  Thanks for your time though.

qbteachmt
Level 15

How do I resolve differences in credit card payment?

For any of the QB programs, you make your entries or get it from Downloads. That part is done to confirm that the individual spending has to exist as part of the credit card account.

 

The Payment can be found as a download from Banking, in which case this is a Transfer to CC account; or, from the CC download, in which case this is a Transfer from Checking. Either perspective is valid, but make sure you only get this from One Side; the other "side" would Find a Match. That is why and how the payment will reduce the running balance in the Card account.

 

And that's why paying More than was due will run the CC account negative, until you get from the download or start entering the New charges you made with that card.

 

Make sure there are no Bills and no AP involved in this. That will complicate the data flow, as that is Hiding one liability in another. If you have a Bill you entered, it should only show the CC account on it. It needs to be only the amount paid, and never an unpaid or overpaid AP balance there. If you have a Bill entered for the CC account that has nothing paid against it, you can delete it; it does nothing except remove the balance owed from the CC account and hides it in AP, so removing it is the right way to correct this error.

Regina_Lend_A_Hand_Accounting
Level 9

How do I resolve differences in credit card payment?

Agreed. If credit card charges were entered and paid as vendor bills into QBO in this case they should be deleted and uploaded via an Excel csv file into the bank feed of the credit card account and then added to its register. I would not advise manual entry. I like to save time and use the technology as intended. But you could do the extra work if you choose to.

qbteachmt
Level 15

How do I resolve differences in credit card payment?

Not every card provider supports connectivity; not every Download includes the level of detail needed; not every transaction is available for download, such as prior to recent 90 days.

 

And some of us are Faster by making our own entries. Then, I use the download and in 3 seconds everything is a Match and I can move on. Using the Banking tools for data entry bypasses all the value and functions found in the actual Data entry functions. For instance, Purchases against Purchase Orders = I make my own purchase entries, first.

Regina_Lend_A_Hand_Accounting
Level 9

How do I resolve differences in credit card payment?

True, not every cardholder supports connectivity. BUT, you can actually download from the credit card company website "online" ALL of the transactions on the credit card into an Excel csv template and upload ALL of these transactions into the bank feed for the credit card account, regardless of whether it is "connected", and it is NOT limited to 90 days of credit card transactions, that limitation is specifically for the "first" time you "connect" a credit card, this is the limit to how many transactions "automatically" come through the bank feed on connection. I have personally imported in over 12 months of credit card transactions into many credit card account bank feeds many times without error using the directly downloaded data from the credit card company. There is no data entry margin of error this way, you just have to make sure there are no duplicates, which is very easy to do. I do not agree that there is value in manually entering credit card transactions into QBO, it is time consuming and increases your margin of error, plus there will be no "match", because you did not import the transactions into the bank feed, which is fast and easy to do.

Regina_Lend_A_Hand_Accounting
Level 9

How do I resolve differences in credit card payment?

:)

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