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How can I apply credit card rewards to a bill? I used credit card credit but it did not reduce the credit card balance. Please help.

In the credit card statement, the balance was reduced by the amount. I want to apply the credit to reduce an expense account in QB. From credit card credit, I entered the credit card company as a payee, and used the expense account. But the entry did not affect the bill amount therefore the credit card balance remains the same. How do I use the credit to "pay" the bill?
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Best answer 10-15-2018

Accepted Solutions
Established Community Backer ***

delete the transaction you entered menu plus>vendors>cred...

delete the transaction you entered

menu plus>vendors>credit card credit

select select the credit card, select an income account, I create one called rewards income, and use that account, enter the credit amount, save

11 Comments
Established Community Backer ***

delete the transaction you entered menu plus>vendors>cred...

delete the transaction you entered

menu plus>vendors>credit card credit

select select the credit card, select an income account, I create one called rewards income, and use that account, enter the credit amount, save

Not applicable

I have my QB set up this way, however, when I reconcile t...

I have my QB set up this way, however, when I reconcile the statements the month reward shows. Should I be selecting that when i reconcile even if the reward was not redeemed?
Not applicable

Thank you very much for your response. I still have one f...

Thank you very much for your response. I still have one follow-up question... In the "deposits and credits" reconcile screen for each month where the monthly reward credit is shown, I do not check it off - I should only check off the redeemed amount in the month that the redemption was taken?  Thank you again for your with my question.
Established Community Backer ***

You only enter an amount because it Affects your balance....

You only enter an amount because it Affects your balance. That is called Posted, as opposed to Available or earned. You checkmark it off, because you have transactions in your file that you also see were processed on the statement. The goal of reconciliation to verify your data and theirs Match to each other. You cannot checkmark or ignore something on your system that doesn't match the statement and expect to be Reconciled.
Established Community Backer ***

"I used credit card credit but it did not reduce the cred...

"I used credit card credit but it did not reduce the credit card balance."

That always reduces the card balance, unless you put the card account on the Expense tab of this entry = referencing the account already getting the credit. Your entry for the Credit should post as Income. The credit card account already is the Top part of this Credit.

"when I reconcile the statements the month reward shows."

Of course it does. It is part of this month's activities.

"Should I be selecting that when i reconcile even if the reward was not redeemed?"

If it wasn't redeemed, you don't enter it yet. You don't enter what you Earned. You enter what you Used against your balance due.


Experienced Member

Re: delete the transaction you entered menu plus>vendors>cred...

I use QB Desktop.  I can't follow the directions "menu plus>vendors>credit card credit."  Please clarify these keystrokes. Thank you.

Established Community Backer ***

Re: delete the transaction you entered menu plus>vendors>cred...

Jrmm-s

 

Your Desktop program has Menus = Words at the top.

 

Banking menu > Enter Credit Card Charge is right here. There is a radio button on it to change it to a Credit (return) entry.

Experienced Member

Re: delete the transaction you entered menu plus>vendors>cred...

Problem for me is that, when I go to pay bills, I'm still showing an outstanding amount owed with no credit available to apply.  So, while my books all balance, when I go to pay bills this shows as an unpaid bill.  How can I clear that??

QuickBooks Team

Re: delete the transaction you entered menu plus>vendors>cred...

Hello there, @speritz.

 

I'm here to help share a few steps so you'll be able to apply the existing credit/s in paying your bill/s.

 

For me to give you the right amount of information, may I know what version of QuickBooks are you using? Is it QuickBooks Online (QBO), or QuickBooks Desktop (QBDT)?

 

If you're using QBO, may I know how did you enter the credit from your vendor? If you've recorded a Credit Card Credit, it won't be applied to your open bill. The credit card credit is a payment to your liability to a credit card account.

 

If your wish to apply the credit in paying your bill, I suggest creating a Vendor Credit, select an item to where the vendor credit comes from. To create a vendor credit:

 

  1. Go to the Plus (+) icon.
  2. Select Vendor Credit under Vendor.
  3. Fill in the vendor credit information.
  4. Click Save and close.

Once completed, apply the vendor credit to your open bill.

 

  1. Click on Expense at the left pane.
  2. Select Vendors.
  3. Look for the name of your vendor.
  4. Click on the Transaction List column.
  5. Click on Make Payment beside the Bill.
  6. Check the Vendor Credit and the Bill.
  7. Click Save and close.

You can see attached screenshots for additional reference.

h12 1.PNG

h12 2.PNG

h12 3.PNG

 

This should help you apply the credit to your bill. In case you have any other QuickBooks concerns in the future, you may check help articles: Help articles for QBO.

 

As always don't hesitate to add a post/comment below if you have any other questions about vendor credit, I'll be always here to help you. Have a great day ahead!

Active Member

Re: How can I apply credit card rewards to a bill? I used credit card credit but it did not reduce the credit card balance. Please help.

we need more information about credit cards like payment,review,pandora credit card login

QuickBooks Team

Re: How can I apply credit card rewards to a bill? I used credit card credit but it did not reduc...

Good day, jagag9.

 

To learn more about credit card payments, here are helpful articles for reference.

Let me know if there's anything else I can help you with.