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adg123
Level 1

Credit card payments not posting to P&L

I have all of my credit cards set up as "credit card" accounts in QB. 

Whenever I make a payment to the credit card accounts, it reduces the liability in the COA, but it does not reflect on the P&L sheet. Therefore, my net income is over- stated. I am using the "pay down credit card" feature. 

 

For example, 

If my profit was $10,000 and I paid $4000 on my credit card, the $4000 payment should reflect as an expense and be posted with the $6000 net income to the P&L, right? If not, how do you keep track of your ACTUAL expenses?

Everything else posts to the profit and loss expect the credit card payments.

 

Is this how QB does their record keeping or am I missing something?

2 Comments 2
GlinetteC
Moderator

Credit card payments not posting to P&L

I can help you with that, adg123.

 

It could be that you're using the bank feeds and haven't categorized the transactions yet, that's why payments don't show up on the register or Profit and Loss report.

 

Once downloaded transactions are categorized and added to the correct account, this will appear in the P&L if they're income or expense transactions. You can verify if this is the case. Kindly read this article on reviewing and categorizing them in QuickBooks Online: Categorize and match online bank transactions in QBO.

 

However, if you're not using the bank feeds, there are a few things you can do to troubleshoot the issue:

 

  • When you receive payment from a customer, that only affects Accounts Receivable and your bank account.
  • If you pay a bill, that only affects Accounts Payable and your bank account. These are all balance sheet accounts, which don't reflect on your Profit and Loss report.
  • To recognize revenue for received payments, you need an invoice created for that customer. This goes for your vendors too. To recognize the expense from bill payments there must be a bill.
  • If you don’t use our invoice/receive payments entry system, but instead record deposits, those should show as long as the deposit is affecting an income account.
  • If you just record the checks written or cash disbursements made, those will show as long as an expense account is listed on the transaction. (Note: If only balance sheet accounts are listed on these transactions, they will not show.)

 

For more details, you can check this link: Why are income and expenses transactions missing my profit and loss report?

 

Keep me posted if you have follow-up questions. I'll be right here to assist.

Rainflurry
Level 13

Credit card payments not posting to P&L

@adg123 

 

When you pay your credit card balance it reduces your CC liability and has no impact on your P&L.  It is when you record the individual CC transactions that expenses hit your P&L, assuming they are recorded as expenses.  Oftentimes, you may pay for purchases with a credit card that are not expenses at all (inventory when purchased, for example) and you don't want those hitting the P&L. 

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