Recording payment of a credit card bill

JeffinBirmingham · ‎January 22, 2023

When select New Other Pay Down Credit Card why don't I see my connected credit card account in the drop down menu?

DebSheenD · ‎January 23, 2023

Allow me to jump in and share some information about recording payments in QuickBooks Online (QBO).

Yes, you are right that If the account you use to pay the credit card is connected (bank feeds), you can record the payment by transferring the record. You can check this article for more details: Record your payments to credit cards in QuickBooks Online.

In this case, it depends on how you can record the transfer in the register. You may want to use this link I've added below to learn more about organizing your transactions from the Banking page:

Please let me know if you have other questions about recording payments. Take care and stay safe.

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jenop2 · ‎January 22, 2023

Hi there, JeffinBirmingham.

I can see that a similar question about missing options when paying a credit card was asked in a separated thread. Let me share the link with you so you can read the reply and follow the troubleshooting steps as well: https://quickbooks.intuit.com/learn-support/en-us/banking/re-credit-cards/01/1199592#M91896.

The Community is always here if you need anything else.

JeffinBirmingham · ‎January 23, 2023

Hello jenop2 and thank you for monitoring this forum and for replying. I had found and reviewed the discussion and it did not exactly apply to me (I've reviewed over a dozen forum conversations about the "double-counting" phenomenon). I don't think the user's credit card account was connected to his QuickBooks Online ("QBO"), because the Moderator advised him how to enter the payment of the credit card bill by going to Banking and then going to the Write Checks function. Would that be necessary if that user's credit card account were connected to his QBO? Thank you again!

Rea_M · ‎January 23, 2023

Writing checks isn't necessary if the user's credit card account is connected to QuickBooks Online (QBO), @JeffinBirmingham. Let me share further details about this below.

With the QBO version, there are two ways you can pay down a credit card. It's either through the Pay down credit card (main) option or writing a check (alternative) method. However, if the user's credit card account is connected to bank feeds, you'll have to record the payment by transferring the entry and then matching it with the new account.

Please see this article to learn more about recording payments you make to your credit cards in QBO: Record your payments to credit cards in QuickBooks Online.

Once everything is all set, I also encourage you to reconcile your accounts in QBO regularly (every month). This helps monitor your income and expense transactions and detect possible errors accordingly. You may want to check out this article as your reference to guide you in doing and fixing reconciliations in QBO: Learn the reconcile workflow in QuickBooks.

If you have other banking concerns or questions about managing transactions in QBO, please don't hesitate to comment below. I'm always ready to help. Take care, @JeffinBirmingham.

JeffinBirmingham · ‎January 23, 2023

Thank you for monitoring this forum and for replying. The article ": Record your payments to credit cards in QuickBooks Online." appears to be gone. The link leads to "An unexpected error has occurred", followed by many lines of computer code. When I "pay down credit card", the connected credit card account does not appear as a choice in the drop down box. Since the account is connected, shouldn't it already be present as a choice. I am afraid to credit a second credit card in QBO, since I only have one credit card account and it's already connected. Thank you again!

JeffinBirmingham · ‎January 23, 2023

Sorry I made mistakes in the reply and here is the corrected version: Thank you for monitoring this forum and for replying. The article ": Record your payments to credit cards in QuickBooks Online." appears to be gone. The link leads to "An unexpected error has occurred", followed by many lines of computer code. When I click "pay down credit card", the connected credit card account does not appear as a choice in the drop down box. Since the account is connected, shouldn't it already be present as a choice? I am afraid to type in the credit card account, since I only have one credit card account and it's already connected and I am afraid of fooling QBO into detecting that I have two credit card accounts. Thank you again!

Just_me · ‎January 23, 2023

@JeffinBirmingham The link is working just fine, for me. Below you will find what it all says.

Record your payments to credit cards in QuickBooks Online

Learn how to record payments you make to your credit cards in QuickBooks Online.

QuickBooks Online allows you to record credit card payments in multiple ways so you can keep track of your expenses and maintain accurate financial reports. In this article, we'll show you how.

Pay down a credit card

This is the main way to record your credit card payments in QuickBooks.

Select + New.
Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card.
Select the credit card you made the payment to.
Enter the payment amount.
Enter the date of the payment.
Select the bank account you paid the credit card with.
If you made a payment with a check, select I made a payment with a check. In the Check no. field, enter the check number, or if you paid electronically, enter the EFT number.
If you want to add notes or file attachments, select Memo and Attachments and follow the instructions on the screen.
Select Save and Close.

Alternative methods

Have you already been using other ways to record credit card payments? You can keep using them if you prefer.

Write a check: If you made a credit card payment using a check, you can record it in QuickBooks by creating a check.

Select + New.
Under Vendors, select Check.
In the Payee field, select the (Vendors name) for the credit card payment.
In the Bank Account field, select the account from which the payment will be made.
Enter a Mailing address and select a Payment date.
In the Check no. field, enter the check number, or If paid electronically, type the EFT.
Uncheck Print Later if the check was already issued.
Enter the Category details and a payment amount.
Enter a description and an amount.
Enter notes under Memo.
Select Save and Close.

Make a payment after reconciling your credit card

Step 1: Reconcile your credit card transactions

Go to Settings ⚙, then select Reconcile.
If it's your first time, select Get started and Let's do it.
Select the credit card account.
Enter any missing transactions from the statement and adjust any incorrect transactions, if there are any.
Once the difference is zero, select Start reconciling.
In the Reconcile screen, select the checkbox next to the transactions that match the transactions on your statement to mark it as cleared.
Select Finish now, then select Done.

Step 2: Pay your credit card transactions

Choose how you want to pay your bills:

Pay all or a portion of the bill now: Pay in full or make a partial payment.
Enter a bill to pay later: Moves the balance in the credit card account to Accounts Payable so you can pay it later.
Done: If you don't want to record credit card balance payments or bills when reconciling.

Tip:

Businesses using Cash Basis, bill, and bill payments for credit cards may show as unapplied cash on the Profit and Loss report.

Use banking download

If the credit card and the bank account you use to pay the credit card expense are connected (bank feeds), you can record the payment by transferring the record.

Transfer the payment

Go to Bookkeeping, select Transactions, and then Expenses (Take me there).
Select the account you need to transfer the payment from.
Select the transaction, then select the Pay down credit card radio button.
Select the Transfer account ▼ dropdown menu and select the account you want to send the transaction to.
Select Confirm.

Alternatively, you can transfer the payment with the Record as transfer option:

Go to Bookkeeping, select Transactions, and select Expenses (Take me there).
Select the account you need to transfer the payment from.
Select the transaction, then select the Record as transfer radio button.
Select the Transfer account ▼ dropdown menu and select the account you want to send the transaction to.
Select Confirm.

Match the transaction

Once you're done with the transfer of the transaction, you need to match it with the new account.

Select the Recognized tab and locate the transaction.
Under the Action column, select Match.

JeffinBirmingham · ‎January 23, 2023

Thank you Just_me for monitoring this forum and thank you for copying the content of the link that I couldn't open. This was the first time that a link to a Quickbooks community page didn't work. I will give the procedure a go. I guess the concept is: As a cash basis taxpayer, an expense does not exist until the pay the credit card bill from the money in the checking account (or recognize it as a payable; however, I have to date been able thankfully to pay the credit card every month in full). Am I correct that the "transfer" (if the transfer method is used) is from the connected credit card account? Thank you again!

DebSheenD · ‎January 23, 2023

Hello there, @JeffinBirmingham.

Allow me to jump in and share some information about recording payments in QuickBooks Online (QBO).

Yes, you are right that If the account you use to pay the credit card is connected (bank feeds), you can record the payment by transferring the record. You can check this article for more details: Record your payments to credit cards in QuickBooks Online.

In this case, it depends on how you can record the transfer in the register. You may want to use this link I've added below to learn more about organizing your transactions from the Banking page:

Please let me know if you have other questions about recording payments. Take care and stay safe.

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Recording payment of a credit card bill