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Best way to connect credit card charges to bills

I have a vendor who charges my credit card when I place an order for the total amount. Say I see a charge show up on my card for $1360. Then they partially ship over extended an period and each time this is accompanied with a bill for those items shipped.

I could just enter the one charge for that vendor and be done with it but I need to split the amount between cost of goods and shipping expense and don't know those amounts until weeks later the bills start coming in with the goods. I also need to keep track so I know all I paid for is received.

If I enter the charged amount as a straight credit card charge. Can I later assign or pay several bills to/with that charge as they come in?

I can wait for the first bill, enter say a $550 bill, apply the $1360 payment to it and leave the rest as a credit to apply to consequent bills but this means I have to wait for the first bill before I can enter the charge which could be a month after the charge happens.

Thanks

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Best answer 10-15-2018

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I need to split the amount between cost of goods and ship...

 I need to split the amount between cost of goods and shipping expense

If you are buying inventory items and have QBO plus, inbound shipping, taxes, duties are all part of item cost - per the IRS, and are not posted separately.

If I enter the charged amount as a straight credit card charge. Can I later assign or pay several bills to/with that charge as they come in?

Yes, if when you enter the CC charge you select accounts payable  - that sets a credit with the vendor in QB, and when you enter a bill, you can apply all or part of the credit in pay bills to pay it.

Entering a CC charge is borrowing money.  When you pay it to the vendor that is a deposit basically, since you get nothing in return at the time of payment.  When the bill comes in, that is when you spend the borrowed money out of the deposit.  So actual expense (or asset purchase) occurs in the period it was used


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Established Community Backer ***

I need to split the amount between cost of goods and ship...

 I need to split the amount between cost of goods and shipping expense

If you are buying inventory items and have QBO plus, inbound shipping, taxes, duties are all part of item cost - per the IRS, and are not posted separately.

If I enter the charged amount as a straight credit card charge. Can I later assign or pay several bills to/with that charge as they come in?

Yes, if when you enter the CC charge you select accounts payable  - that sets a credit with the vendor in QB, and when you enter a bill, you can apply all or part of the credit in pay bills to pay it.

Entering a CC charge is borrowing money.  When you pay it to the vendor that is a deposit basically, since you get nothing in return at the time of payment.  When the bill comes in, that is when you spend the borrowed money out of the deposit.  So actual expense (or asset purchase) occurs in the period it was used


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Thank you. That cleared that up.

Thank you. That cleared that up.
Established Community Backer ***

You're Welcome

You're Welcome
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Re: I need to split the amount between cost of goods and ship...

Hi,

I am using QBO for UK Market.

When I try to enter CC charge (transaction type: Expense), I can't use Accounts Payable account in the "Account" section as it has t have Supplier associated with it and there is no option to add supplier.

Please assist.

QuickBooks Team

Re: Thank you. That cleared that up.

HI Aleksandra,

 

Thank you for your query & Welcome to the QuickBooks Community!

 

Before I can advise would you be able to clarify which QuickBooks product you have is it Self Employed or small business and a UK product?

 

We are currently out of the office until tomorrow morning so if you reply it will be picked up first thing in the morning by myself and I will be able to assist you with your query.

 

Thank you in advance and I look forward to hearing from you.

 

Hope you enjoy the rest of your evening!

 

Kindest regards

 

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