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how to apply credit card payment to multiple expenses?

I use my credit card to pay for several reoccurring expenses.  How to I apply my payment to the appropriate expense?  For example, in one credit card payment, I had the following items: professional dues, marketing and office supplies.   In my Bank and Credit Card section I have 2 credit card payments to review.    My only option appears to be to transfer to categorized asset.  How do I fix this?  

many thanks!

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Best answer 11-22-2018

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ProAdvisor

Re: how to apply credit card payment to multiple expenses?

@SierraNurse

 

"My only option appears to be to transfer to categorized asset.  How do I fix this? "

 

From the Banking > "For Review" tab, click the transaction you have for credit card expenses.
You will see three radio buttons —Add, Match, and Transfer.
Switch to "Add" radio button.
Click "Split" link (next to add).
Now, you can split transaction to account category you want.
Click Save and add button.

3 Comments
Established Community Backer ***

Re: how to apply credit card payment to multiple expenses?

Your credit card payment is Not the point in time that you paid for anything except Debt Payoff. Every date you used the card is when you bought something, and you paid them by giving the card to them. That reflects a Micro-loan you just took from VISA or AMEX, and now you are more in Debt to VISA or AMEX; the office supplies just got paid.

 

Then, you see that each "credit card charge expense" entry is increasing the running debt balance of the Credit Card Type of account in your business bookkeeping.

 

You get an Account Statement; that is not a Bill. It is your Statement of Activities, showing the amount you owe, showing any previous payments were received, and showing any returns or credits, fees, etc. That statement is not a Bill to pay; you did not buy anything from VISA or AMEX. They are your Lender. You didn't buy it all on that one date. There is no "sort, lump, enter" for this statement. It will be used to reconcile your account to their statement for verification, detection of errors and fraud, etc.

 

The Payment to the card provider simply shows the Credit Card Account as the expense. This is paying down Debt. This is not buying the office supplies, again.

 

The function of Transfer is: The two Balance Sheet Accounts (Checking and Credit Card) as paperless exchange, where funds from Banking (asset) paid down the card (liability) balance. That's why you do not assign this as Office Supplies or Dues or anything for P&L reporting. It is Debt Payment.

 

You Paid for Dues on the date they hit the credit card account with that charge; you don't pay AMEX or VISA dues. You pay some sort of Membership organization for your dues to them. Enter Expenses, individually, for the date and payee; from Credit Card, or from Checking, or from Petty Cash (cash on Hand) as the Source of the spending = how you were able to Buy it, already.

 

Paying the credit card balance is Cash Flow as expenditure, not as an Expense Account like office supplies or dues.

 

Hope that helps.

ProAdvisor

Re: how to apply credit card payment to multiple expenses?

@SierraNurse

 

"My only option appears to be to transfer to categorized asset.  How do I fix this? "

 

From the Banking > "For Review" tab, click the transaction you have for credit card expenses.
You will see three radio buttons —Add, Match, and Transfer.
Switch to "Add" radio button.
Click "Split" link (next to add).
Now, you can split transaction to account category you want.
Click Save and add button.

Established Community Backer ***

Re: how to apply credit card payment to multiple expenses?

The Payment to the card provider is not Split into any expense categories; it is paying down the card account (debt) balance. You should have the credit card Type of account or category, for this reason. Your spending details are from the Card Provider. The Payment between checking and credit card is never office supplies or fuel or any other Expense reason; that is your debt balance payment. You would only Split that payment if you have more than one credit card account needing to have the payment allocated to them.