Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Need help with 1099's or other Year End topics? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

partial credit card payments

Occasionally I will make only a partial payment on my credit card instead of paying the whole amount. In the pay bills screen, I click the bill for the credit card and enter $2,000 on the right hand amount to pay column. When I reconcile the credit card the following month the $2,000 doesn't show up on my reconcile screen so it shows I'm $2,000 off. What am I doing wrong?

Solved
Best answer January 03, 2019

Best Answers
Level 15

partial credit card payments

Never make a Bill to pay later. The error is using a Bill at all. @Charies_M The issue is that a Bill implies the CC account already got paid; the difference is hiding in AP. You don't use Bills for CC processing.

 

"When I reconcile the credit card the following month the $2,000 doesn't show up on my reconcile screen so it shows I'm $2,000 off. What am I doing wrong?"

 

When you reconcile and the QB program offers to make a bill. Do Not Let It. Just hit Escape, cancel or the X in the top right corner. Make your own Check entry, for the payment date and amount, when you want to note how much you paid, putting the credit card account in the Expenses tab.

 

What you are doing now is hiding a liability (CC) in a different liability (AP). You cannot Reconcile the card provider statement, because the rest of the reconciled amount is hiding in AP.

 

Here's how to Fix it, now. Any Bill against CC that is not paid at all, just delete it. All that is doing is running data in Circles between two liability account types. Now, for any Partially Paid bill, reduce it to the amount paid. Now no open AP exists for the CC, so you Stop using bills entirely.

 

Using the CC is not AP. It is taking a Micro-loan, and the payment to the card provider is Direct, and not as AP. They are different types of Liabilities.

View solution in original post

5 Comments
Moderator

partial credit card payments

I'm glad you reached Community for support, dbgroup.

 

I want to make sure your concern with reconciling your credit card get's taken cared of.

 

To fix this, you'll have to edit the Pay Bills that you partially paid and change it to the exact amount you paid them. Doing this, you'll now be able to see the bills when reconciling your credit card.

 

Moving forward, when paying credit card charges, you can use the Write Checks feature in QuickBooks. This will let your payments show up in your credit card register along with your charges and you can reconcile the account normally.

 

Here's how:

  1. Go to the Banking menu.
  2. Select Write Checks.
  3. From the Bank Account drop-down, select the bank account you want to use for paying the credit card.
  4. Select the date of your payment.
  5. In the Pay to the order of drop-down, select the name of your credit card company.
  6. Enter the amount of your payment.
  7. Select the Expenses tab and select your credit card account.
  8. Select Save & Close.

I'll leave you with an article that will guide you through the process of paying credit card in QuickBooks Desktop: Set up, use, and pay credit card accounts.

 

I always got your back so please don't hesitate to reach out to me with any additional questions about making partial credit card payments in QuickBooks Desktop.

Level 15

partial credit card payments

Never make a Bill to pay later. The error is using a Bill at all. @Charies_M The issue is that a Bill implies the CC account already got paid; the difference is hiding in AP. You don't use Bills for CC processing.

 

"When I reconcile the credit card the following month the $2,000 doesn't show up on my reconcile screen so it shows I'm $2,000 off. What am I doing wrong?"

 

When you reconcile and the QB program offers to make a bill. Do Not Let It. Just hit Escape, cancel or the X in the top right corner. Make your own Check entry, for the payment date and amount, when you want to note how much you paid, putting the credit card account in the Expenses tab.

 

What you are doing now is hiding a liability (CC) in a different liability (AP). You cannot Reconcile the card provider statement, because the rest of the reconciled amount is hiding in AP.

 

Here's how to Fix it, now. Any Bill against CC that is not paid at all, just delete it. All that is doing is running data in Circles between two liability account types. Now, for any Partially Paid bill, reduce it to the amount paid. Now no open AP exists for the CC, so you Stop using bills entirely.

 

Using the CC is not AP. It is taking a Micro-loan, and the payment to the card provider is Direct, and not as AP. They are different types of Liabilities.

View solution in original post

Level 1

partial credit card payments

Worked perfectly! Thanks so much!

Level 1

partial credit card payments

and once bill is deleted, how can i change the account type in desktop 2020?

I deleted the bill, but the payment was already cleared. Now I can't edit the transaction and it does not  show when reconciling the CC account.

QuickBooks Team

partial credit card payments

Hi there, Geminyc.

 

Thanks for joining us here.

 

When you delete a bill with a payment, the payment sets in A/P as a credit. For us to fix this, we recreate the bill and pay it with the credit.

 

You may check this article for more details: Pay bills in QuickBooks Desktop.

 

Please post again if you need further help. I'll be here!

Need to get in touch?

Contact us