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Best answer August 26, 2021
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Hello again, WendyJT!
I assume you use a business credit card to pay vendors online. I also expect it to be set in your Chart of Accounts as it is used in your business transactions. That said, I want to clarify the process of handling credit card transactions to point you in the right direction. I'll divide my explanation into two parts, so you can easily follow.
Recording vendor bills and using a credit card to pay them.
When you receive invoices from your vendors, you'll want to record them as bills in QuickBooks. When you pay the bills online, you also want to reflect the payments in QuickBooks by paying those bills.
Paying the bills will require you to choose a payment account, which should be your credit card account. Every time you record payments against the card, it accumulates a balance, and that's the amount you owe to your bank.
At this point, your vendor bills are paid, but you've accumulated a balance in your credit card account.
On the other hand, you can directly enter credit card charges without entering a bill, such as payments to a gas station, meals, stores, etc. This is what Maybelle_S pointed in her answer.
Receiving a credit card bill from the bank and paying it.
When your bank sends your credit card bill, you don't need to record it anymore since the card balance already serves as a payable amount. Besides, credit cards are a liability by nature.
When you pay your credit card bill, you also want to reflect it in QuickBooks. However, the process is different from paying bills from regular vendors. For example, if you take money from your checking account to pay your credit card bill, just create a transfer from checking to your credit card account. This will reduce the credit card balance in your Chart of Accounts. This is also discussed in the article that Maybelle shared above.
That's it. If you need more help with your transactions, please don't hesitate to go back to this thread. I'll be more than happy to assist you again.
Hello there, @WendyJT.
I can help you record the credit card payment in QuickBooks Desktop (QBDT).
We can enter the credit card charges to put the amount you owe in the credit card account. Here's how:
1. Go to the Banking menu, and then select Enter Credit Card Charges.
2. Choose the account from the Credit Card drop-down arrow.
3. Purchase/Charge is the default. If you want to record the credit or refund you received through the credit card, select the Refund/Credit instead.
4. Select the vendor from the Purchased From drop-down arrow.
5. Click the date.
6. Select the Expenses or Items tab and enter the expenses/items you want to track.
7. Hit Save & Close.
Once done, you can now pay your credit card charges to reduce the amount you owe. You can check this link for the steps under Pay credit card charges before reconciliation: Set up, use, and pay credit card accounts.
Also, I've got these articles to learn more about the different Accounts Receivable (A/R) and Accounts Payable (A/P) workflows in QuickBooks:
• Accounts Receivable workflows in QuickBooks Desktop
• Accounts Payable workflows in QuickBooks Desktop
You can always get back to us here if you have other questions about QuickBooks. I'm always here to help.
Hello again, WendyJT!
I assume you use a business credit card to pay vendors online. I also expect it to be set in your Chart of Accounts as it is used in your business transactions. That said, I want to clarify the process of handling credit card transactions to point you in the right direction. I'll divide my explanation into two parts, so you can easily follow.
Recording vendor bills and using a credit card to pay them.
When you receive invoices from your vendors, you'll want to record them as bills in QuickBooks. When you pay the bills online, you also want to reflect the payments in QuickBooks by paying those bills.
Paying the bills will require you to choose a payment account, which should be your credit card account. Every time you record payments against the card, it accumulates a balance, and that's the amount you owe to your bank.
At this point, your vendor bills are paid, but you've accumulated a balance in your credit card account.
On the other hand, you can directly enter credit card charges without entering a bill, such as payments to a gas station, meals, stores, etc. This is what Maybelle_S pointed in her answer.
Receiving a credit card bill from the bank and paying it.
When your bank sends your credit card bill, you don't need to record it anymore since the card balance already serves as a payable amount. Besides, credit cards are a liability by nature.
When you pay your credit card bill, you also want to reflect it in QuickBooks. However, the process is different from paying bills from regular vendors. For example, if you take money from your checking account to pay your credit card bill, just create a transfer from checking to your credit card account. This will reduce the credit card balance in your Chart of Accounts. This is also discussed in the article that Maybelle shared above.
That's it. If you need more help with your transactions, please don't hesitate to go back to this thread. I'll be more than happy to assist you again.
