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A
Anonymous
November 14, 2017
Solved

Categorizing Credit Card Payments

  • November 14, 2017
  • 2 replies
  • 57 views

I have 2 credit cards. 1 for exclusively for Work, and 1 that is for mostly work but sometimes has larger personal things on it too. 

I pay off the Work card in installments each month, I am no longer using it to purchase anything, just paying off the balance.

The Mostly Work card I pay off in full each month. 

My question is: How should I be categorizing these payments in the Banking Section of my Quickbooks Online? 

    Best answer by qbteachmt

    Credit Card balances are Debt. The Balance you owe gets increased by entering Expense charges that you used that card for, already. The credit card purchases are individually entered, for the date you used that card to buy something. That is how your balance owed Increases.

     

    The balance goes down by the payments you make. A payment against a Card Balance is paying against that credit card type of liability account in your file, the same as ane debt payment is not expense but Liability payment.

     

    In other words, paying VISA or AMEX is a debt payment, it isn't the purchase of something. You didn't buy anything from them. They are Lender = the card provider for micro-loans.

    2 replies

    qbteachmt
    qbteachmtAnswer
    Level 11
    November 15, 2017

    Credit Card balances are Debt. The Balance you owe gets increased by entering Expense charges that you used that card for, already. The credit card purchases are individually entered, for the date you used that card to buy something. That is how your balance owed Increases.

     

    The balance goes down by the payments you make. A payment against a Card Balance is paying against that credit card type of liability account in your file, the same as ane debt payment is not expense but Liability payment.

     

    In other words, paying VISA or AMEX is a debt payment, it isn't the purchase of something. You didn't buy anything from them. They are Lender = the card provider for micro-loans.

    A
    Anonymous
    November 15, 2017

    That is a great, in depth, and helpful reply, thank you! 

    So in Quickbooks Online, should I just link my credit card through Banking and enter each expense? Or should I just enter the total payment to the credit card as a debt payment? Or do I do both? 

    A
    AileneAModerator
    Moderator
    September 4, 2020

    The credit card payments downloaded for my bank reconciliation. The individual purchases for expenses, such as gas, newspapers, did not download. So how do I get them into my QBO account to complete the reconciliation to have my QBO account match my bank? Do I do manual entries. I tried doing the period download, i.e. 4/10 to 5/9.


    Hello, TCL2. 

     

    Thank you for posting in the Community. I am here to help you sort this out. Once you connect a bank account to online banking, QuickBooks automatically download your transaction data each night, you can refer to this article for detailed information: Manually download online bank transactions in QuickBooks Online.    

     

    Though, we can perform some basic troubleshooting. You can start by manually updating your bank to sync the latest transactions.  

     

    Here's how:  

     

    1. On the left pane, tap Banking. Then choose Banking. 
    2. Choose the account. 
    3. Click Update. 

     

     

     

    Also, if you want to manually add bank transactions, you can use the WebConnect feature. You'll need to download the data first from your bank's website and import to QuickBooks Online.   

     

    After that, log in to your QuickBooks Online account. Once done, we can add transaction by importing it using CSV files. Though, to successfully add transactions using CSV files, we need to follow the bank formats. Let me show you how to import transaction:   

     

    1. Click the Banking menu, choose banking.  
    2. Under Update drop-down arrow, and select File upload. 
    3. Tap the Browse to select a file to upload, press Open then next.
    4. Drop-down arrow select the Account type, or click the + Add new. Then press Next.
    5. Select a Date, date format, Description, and Account. Note: You can choose 1 column or 2 columns. 
    6. Press Next. 
    7. Onscreen message Select the transactions to import, hit Next. 
    8. Pop up message will appear transaction will be imported. Do you want to continue? Press Yes. 
    9. Hit Let's go!   

     

     

     

     

     

     

     

     

     

     

     

     

    Once the import is finished, you are directed to the Banking menu or Transactions menu where your imported transactions are displayed on the For Review tab. You can review, add, or match each transaction.   

     

    For more information about import CSV Files, you can check out this article: Import bank transactions using Excel CSV files.  

     

    Also, For more details about how to manage your bank transactions, you can refer to this article: Categorize and match online bank transactions in QuickBooks Online.   

     

    I want to make sure that you'll be able to download data to your bank, please don't hesitate to let me know how it goes. If you should have additional questions, I'm just a click away. Take care!

    K
    karlanllc-gmail-
    August 13, 2022

    My business has changed banking institutions and need to change account that credit card payments get deposited to.

    L
    LeizylMQuickBooks Team
    QuickBooks Team
    August 13, 2022

    Good day, karlanllc-gmail-. 

     

    I've got you're back to help you change the payment account in QuickBooks Online (QBO). Here's how:

     

    1. Click the Gear icon.
    2. Select All Lists.
    3. On the Lists page, select Payment Methods.
    4. Click New on the Payment Methods page.
    5. Enter a name for the new payment method.
    6. Put a checkmark in the This is a credit card box.
    7. Click Save.

     

    I'm adding this article for more guidance: Add or modify the accepted credit card types in QuickBooks.

     

    You might also want to review all your sales and purchase transactions in the future. You can check out these articles for the detailed steps and information:

     

     

    That should do it! Fill me in if you have other questions about changing your payment account in QBO. I’m always here to help. Stay safe and have a good one.

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