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idf_83addbf3-d4e
Level 2

How do I categorize a credit card payment?

 
10 Comments 10
KlentB
Moderator

How do I categorize a credit card payment?

Welcome to the Community, idf_83addbf3-d4e.
 

Let me share some insights about credit card payment categorizations.

 

You can categorize credit card payments in QuickBooks Online manually using the Pay down credit card function. Here's how:

 

  1. Click the + New button.
  2. Choose Pay down credit card.
  3. Select the credit card you made the payment to.
  4. Enter the payment amount and date of the payment.
  5. Select the bank account you paid the credit card with.
  6. If you made a payment with a cheque, select I made a payment with a check and then enter the check number.
  7. if you paid electronically, enter the EFT number.
  8. Add a memo or attachment as needed.
  9. Select Save and Close.

I'm also adding this article to help manage the payments you make to your credit cards in QuickBooks Online: Record your payments to credit cards.

 

Drop me a comment below if you have any other concerns or further questions. I'll always have your back.

idf_83addbf3-d4e
Level 2

How do I categorize a credit card payment?

I know how to pay the charge. The issue is now do I document the various vendors that have been paid by that charge. When I pay a credit card bill, there are various vendors such as phone, accounting, auto, etc. I need to break the payment down for accounting purposes.

Charies_M
Moderator

How do I categorize a credit card payment?

Hi there , idf_83addbf3-d4e.

 

I can guide you on how to record breakdowns for credit card payments in QuickBooks Online (QBO).

 

You can categorize the payments directly on your Bill or Check.

 

Here's how:

 

  1. From your Check
  2. In the Payee field, select the (Suppliers name) for the credit card payment.
  3. In the Bank Account field, select the bank account or credit card from which the payment will be made.
  4. Enter a Mailing address and select a Payment date.
  5. In the Cheque no. field, enter the cheque number, or If paid electronically, type the EFT.
  6. From the Category drop-down menu, make a selection.
  7. Enter a description and an amount.
  8. Enter notes under Memo.
  9. Select Save and Close.

Otherwise, you can use the Memo feature to note the breakdown of payments. Follow the steps below to be guided:

 

  1. Go + New.
  2. Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card. Select the credit card you made the payment to.
  3. Enter the payment amount. Enter the date of the payment.
  4. Select the bank account you paid the credit card with.
  5. If you made a payment with a cheque, select I made a payment with a cheque. In the Cheque no. field, enter the cheque number, or if you paid electronically, enter the EFT number.
  6. If you want to add notes or file attachments, select Memo and attachments and follow the instructions on the screen.
  7. Select Save and Close.

Let me share these articles with you for additional reference:

 

Additionally, since you've already switched to the UK version of QuickBooks, you might find this resource helpful: Help Articles.

 

As always, you can find me here if you need more help with the process above. It's my pleasure to assist you. Have a good one.

chris@optionalth
Level 2

How do I categorize a credit card payment?

For example:  I use my credit card to pay for $50 for WiFi and input into QBO as an expense.  When the credit card bill comes due, I pay the bill of $50.  How do I record the $50, so it's not listed as two expenses?

 

Rea_M
Moderator

How do I categorize a credit card payment?

Hello there. Welcome back to the Community.

 

Let's apply your expense transaction as a bill payment so you won't be recording your $50 credit card payment twice in QuickBooks Online (QBO) and manage your expenses accordingly. 

 

To do this process, you'll have to edit the expense transaction and update the affected account to Accounts Payable (A/P), and then link it to your credit card bill. Here's how:

 

  1. Open the expense transaction, and go to the Category details section.
  2. Change the affected account in the Category column to Accounts Payable (A/P).
  3. Click Save and close.
  4. Open the bill you created, and click the Make payment button.
  5. Under the Outstanding Transactions section, mark the bill you want to pay.
  6. Under the Credits section, mark the expense transaction. We'll use it as a payment.
  7. Make sure the AMOUNT PAID is equal to zero (0.00).
  8. Click Save and close.

 

Please see this article to learn more about managing expenses in QBO: Record, edit, and delete expenses in QuickBooks Online.

 

Also, there are specific ways you can customize your reports to get insights about your business. You may want to check out this article as your reference to guide you in pulling up the one you need to manage your vendor payments in QBO: Common custom reports in QuickBooks Online.

 

If you have any other concerns about managing bills and expense transactions in QBO, let me know by adding a comment below. I'm more than happy to help. Keep safe!

chris@optionalth
Level 2

How do I categorize a credit card payment?

Hi Rea,

I appreciate the information, but I'm not able to find Accounts Payable.  I'm using the QBO Simple Start subscription and not sure if A/P is available or if there is another solution?  Any help or guidance is appreciated. Thank you.

 

Chris

Archie_B
QuickBooks Team

How do I categorize a credit card payment?

Hi there, chris@optionalth.

 

Let me help and make sure you're able to manage expenses in QuickBooks Online.

 

I just replicated the steps my colleague @Rea_M provided above in my own QuickBooks Online Simple Start. By scrolling down, you should be able to update the expense transaction's category and select Accounts Payable (A/P). See the sample screenshot below:

 

 

You still have the same Chart of Accounts and can make journal entries using the Simple Start version of QuickBooks Online. But keep in mind that we can only create an expense or check transaction to track all vendor-related entries since paying vendor bills with the Pay Bills function and tracking accounts payable are only available in higher versions.

 

Alternatively, you can check out this link to learn how you can record your payments to credit cards in QuickBooks Online.

 

Visit this article to see which reports are available for your QuickBooks Online version: Reports included in your QuickBooks Online subscription.

 

Let me know if you still have other concerns regarding your expenses. I'll be here to answer them. Have a wonderful day!

chris@optionalth
Level 2

How do I categorize a credit card payment?

Hi Archie,

Thank you for the step-by-step, it helped to know we are on the same subscription.  BUT, you are not going to believe this.  AP is not listed on my end.  Ugh!  Could I inadvertently deleted it somehow?  Can I mirror screens with you all, so you can see what I'm seeing?  Your help is appreciated.  Thanks, Chris

JamesAndrewM
QuickBooks Team

How do I categorize a credit card payment?

I appreciate you for connecting with us here, Chris.

 

Thank you for your effort in performing the suggested steps provided by colleagues above. Let me guide you to the best way to contact the right person to get the help you need. They have the tools to pull up your account which is needed in investigating the cause of the issue.

 

Be informed, that due to the high volume of calls and chat requests, the waiting time can reach up to 35 to 45 mins. Rest assured, you'll be taken care of immediately once you can get hold of a live person.

 

To speak with one of our experts from QuickBooks Online Support. Please follow the steps below to contact support:

 

  1. Sign in to your QuickBooks Online company. Click Help (?).
  2. Choose either tab to get started: Assistant or Talk to a human.
  3. Search or select Contact Us.
  4. Start a chat with a support expert.

 

You can contact us from Mondays to Fridays, 6 AM to 6 PM PT.

 

You can visit this article to learn good bookkeeping practices: Enter expenses, pay bills, write checks, and manage suppliers

 

Feel free to drop by the Community whenever you have further concerns. Stay safe!

slc4
Level 1

How do I categorize a credit card payment?

Does this also apply to Cc that have cleared the bank already. I’m need to change the category for my P&L reports it is not recognizing Cc payments as a catagory

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