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ghsadmin
Level 1

Reconciling a central billing account with multiple credit cards

Help with QuickBooks 2017 Pro.

I have a Central Billing Credit card account with two credit card account aligned with it.

Central Billing Account  XXXX XXXX XXXX 5530

Credit Card #1 XXXX XXXX XXXX 6413 with a credit limit of $10,000

Credit Card #2 XXXX XXXX XXXX 5530 with a credit limit of $500

 

When I pay the credit card statement the payment goes to the Central Billing Account 5530.

When I reconcile the Bank statement using QuickBooks 2017 the bank statement separates the credit card charges by the separate Credit Card #1 and Credit Card #2 accounts. 

 

In Quickbooks 2017, during reconciliation when I reconcile the bank cards, the charge entries for each card shows up under each card’s account plus the combined Central Billing Account 5530.  When I make a payment, the payment shows up under the combined Central Billing Account 5530 and the account total is adjusted to the amount of the payment. 

 

However, the account total of each of the individual Credit Cards #1 and #2 does not reduce from the Credit Card total amount due for each card. 

 

So, the Central Billing account 5530 has a $0.00 balance after payment of the statement, when at the same time, each of the individual Credit Cards continue to add to their cards total without being reduced by the statement payment.

 

The reconciling shows line items with a status of being reconciled for each credit card account and the Central Billing Account 5530. 

 

So even though the Central Billing Account 5530 shows a $0.00 balance the credit card accounts show the full balance due for all of the line items in the two accounts.

 

HELP!

3 Comments
GlinetteC
Moderator

Reconciling a central billing account with multiple credit cards

Hi there, ghsadmin.

 

You got me here to help you sort this out. Since you have multiple cards for Central Billing Account, it is recommended you have one account as the parent/reconciliation account. Any other accounts associated with that line of credit should be sub-accounts. Only the sub-accounts should be connected via bank feeds. This action will allow the charges on the individual cards to move to the parent account, where you will apply for payments and reconcile. 

 

Here's an article you can refer to on how to set up, use, and pay credit card accounts for your guide. 

 

I'm also including this link about reconciling accounts in QuickBooks Desktop.

 

Please keep me posted on the results. I want to make sure this is taken care of.

gaysue28
Level 1

Reconciling a central billing account with multiple credit cards

I have the same issue applying payments to a credit card account with multiple cards.  I have a parent company set up with the multiple cards as sub accounts.  I breakdown the payments in the parent account crediting the sub accounts. That  leaves the sub account that the payments download to from the bank with a large balance.  This large balance shows up on the Balance Sheet which makes the Balance Sheet wrong. Please help.

 

 

Ashley H
QuickBooks Team

Reconciling a central billing account with multiple credit cards

Thanks for joining in on this thread, @gaysue28.

 

I recommend reaching out to your accountant for the best accounting advice. They'll be able to assist you with organizing your transactions and with the reconciliation process with parents and subaccounts in your QuickBooks Desktop. If you don't have an accountant, then you can visit this site to locate one that's near you and to fit your business needs: Find a ProAdvisor.

 

Also, if you haven't already, you can follow my colleague's @GlinetteC post to get you back on track. You can also refer to this Community article: About bank or credit card subaccount setup.

 

If you have any other questions or concerns, please don't hesitate and reach back out! Have a beautiful day.

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