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bsynchro21
Level 1

Credit card bill payment

I am a just beginner and I connected online quickbook bank acct to real my bank acct.
So I should categorize lots of transactions.
And my biz credit card payment was withdrawn from this acct.
What category should I put this transactions?
And for example, there were transactions for the creditcard balance (-$1000) and payment transaction($1000) Should I accept those two transactions together?
And more, if I transfer some amount to the other bank acct, this should be into "Uncategorized Fund?"
I need your help...Thank you in advance.
17 Comments
IntuitHeidi
Moderator

Credit card bill payment

Hi Bsynchro21- Welcome to QuickBooks Online!  You asked about categorizing transactions- is this for your business bank account?  Usually people go through the transactions, and put them to specific income/expense categories (if they haven't already entered the transaction in QuickBooks Online- otherwise you would just match the transaction).  Once a transaction gets categorized, QuickBooks Online has memory and will categorize other transactions the same way.  There's a great video on the  top of the Downloaded Transaction screen that I would recommend viewing.

In the example you gave, did you pay off the credit card balance of $1000?  If so, you would accept all the transactions, but the $1000 payment would be from the banking account you took the money out of to pay the credit card.

If you transfer money between accounts, you just choose the Bank account the money came from.  Then on the other bank account you just match the transaction and accept it.

Please let me know if you have further questions!
GabrielleFontaine
Level 1

Credit card bill payment

This is a common situation of confusion... no matter which version of QuickBooks you're using, because it is a bookkeeping question really. ;-)

It sounds as though both your checking account and your credit card account have been set up in QuickBooks. Assuming that is the case, this is how it should work:

You would "categorize" each of the transactions (charges) on the credit card account (as they came in) to their appropriate expenses (so you capture the tax deductions).

You would next "categorize" the payment you made to the credit card from the checking account to the account you've set up for that credit card (not an expense account). In essence, you are just transferring the money from the checking account to the credit card account to pay for the purchases already recorded.

Whether you download the transactions or enter them in manually, the principles are the same. While this is showing how to do it in QuickBooks desktop, if you grasp the principles of how it works, you can use it to properly code your downloaded transactions in QuickBooks Online.

http://qbquicktips.com/blog/general/credit-card-accounts-in-quickbooks/

Hope this helps. :-)

rameo
Level 1

Credit card bill payment

I have the same question.  You responded what to do with the charges (got it) and the credit card payment (got it), but not what to do with the matching amount coming from the checking to pay for the credit card expenses.  In the above question it's -$1000 being withdrawn from checking to pay for credit card, but also a downloaded transaction of +$1000 showing the total amount paid on the credit card.  I just do not know how to assign/match and categorize these.  Please help me.  I know that  it's money going in and money going out, but I need more details on categorizing. I think that my accountant at one time said to put both of them in an exchange category. Would that work?  Thank you for your time and reply.
IntuitHeidi
Moderator

Credit card bill payment

Hi rameo! Great question: With the +1000 showing as a Payment, you would click on that it came from the Checking Account (that's the only tricky part when doing Credit card Transactions).  Then when you go to your Checking Account, it should automatically Match, saying it came out of the Credit Card Account.  If you do your Transactions in your Checking account first, then put the -$1000 to your Credit Card Account, and when you go to your Credit Card Account, it will automatically be matched, so just add it.  Please let me know if that helps!
rameo
Level 1

Credit card bill payment

Wow.  Thank you for your quick response.  This exactly answers my question and has helped me tremendously.  Thank you, Thank you!
IntuitHeidi
Moderator

Credit card bill payment

Thank you so much for the feedback Rameo- you made my day!!
stevenjiles
Level 1

Credit card bill payment

Awesome Sauce!!!  It totally worked!  Thanks...
Walter3
Level 1

Credit card bill payment

-
jan4
Level 1

Credit card bill payment

Thanks guys! This really helped me a lot too.
cori
Level 1

Credit card bill payment

I'm still confused after reading this!  I have set up my credit card and categorize all the expenses coming through there... but what category does the Credit Card Payment (money being transferred from my checking account to pay credit card off) fall under? I can't seem to categorize it! i.e. Expense...? That doesn't sound right...
fernandaa
Level 1

Credit card bill payment

I have the same questions...
nathan-osorio
Level 1

Credit card bill payment

Does it matter whether you use the "Add" or "Transfer" as long as the credit card account is selected in the Checking accounting page (or the checking account in the credit card page)?
rporzio
Level 1

Credit card bill payment

You need to update your video
jallenrouman
Level 1

Credit card bill payment

In my case, I don't have the checking account connected to my QB Self-Employed account. (I use the credit card for more personal charges than business ones at this point). Where should I "transfer' the payment from, since it is outside of QB?

AlcaeusF
Moderator

Credit card bill payment

Hello there, jallenrouman.

 

Welcome to the QuickBooks Community. I'm here to provide information about recording credit card payment. 

 

Since your Checking account isn't connected, you can directly add a transaction for the payment. You can use the Credit card payment category when entering the payment in the system. The transaction type will show automatically as Transfer.

 

For more information about this category, you can visit the article below:

 

Transfers: Credit Card Payment

 

The Community has your back whenever you need help with recording the transactions. Wishing you all the best.

Randy6
Level 2

Credit card bill payment

What if I walk into the bank that holds my credit card and pay them $2000 cash for my credit card bill?  How do I record this in Quickbooks?

NielyAnnR
QuickBooks Team

Credit card bill payment

I’m happy to see you here in QuickBooks Community, Randy6.

 

Let me share the different ways to record credit card payments.

 

By writing a check:         

  1. Go to the Plus (+) icon.
  2. Under Vendor, select Check.
  3. In the Bank Account field, choose the bank account the payment was made.
  4. Uncheck Print later, and out the check number in the Check field.
  5. In the Payee field, enter the name of the credit card (Vendor Name).
  6. Enter $2000 for the Amount.
  7. In the Account field, select the credit card.
  8. Select Save and Close.

By creating a transfer:

  1. Go to Plus (+) icon.
  2. Under Other, select Transfer.
  3. From the Transfer Funds From, drop-down the bank account the credit card was paid from
  4. From the Transfer Funds To drop down, select the credit card that the payment went to.
  5. In the Transfer Amount box, enter the amount of the payment.
  6. (Optional) Edit the date.
  7. Select Save.

For your additional guidance with the steps above, you can refer to this article:How to Record Credit Card Payments.

 

If you still have other concerns, feel free to post below. Have a wonderful day!

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