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Level 1

paying credit cards

I started to use a credit card to pay vendors this year so I would enter the bill into quickbooks and then click on pay bills and choose the credit for the form of payment instead of a check. When I would pay on the credit card I would do it through write checks.

When I ran a p&L report I noticed that the expenses are listed by expense account but then they are also listed all together as a expense for the payment I made through write checks.

How do I fix this?

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Best answer January 03, 2019

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Anonymous
Not applicable

paying credit cards

There should be no expense on the check used to pay your credit card bill.  The only account used should be your credit card account, which will then pay down the balance on that account.

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Level 1

paying credit cards

What type of account should I use when i'm paying write checks because I'm required to assign the check to an account

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6 Comments
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Anonymous
Not applicable

paying credit cards

There should be no expense on the check used to pay your credit card bill.  The only account used should be your credit card account, which will then pay down the balance on that account.

View solution in original post

Highlighted
Level 1

paying credit cards

What type of account should I use when i'm paying write checks because I'm required to assign the check to an account

View solution in original post

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QuickBooks Team

paying credit cards

Hello there, reba01. 

 

Thanks for joining us here in the Community. I'm here to provide an overview about processing payments through writing checks.

 

Can you verify which account field are you referring to? There are two main fields which requires an account when writing a check. 

 

At the upper left-hand corner, you'll see a Bank account drop-down. You need to select the bank account where the money to pay the transaction will be taken out. 

 

Meanwhile, under the Expenses tab, you'll have to choose what account to use when paying the expense incurred by the company. For example; if this is a payment for the rent, telephone, or electricity, you can use the Utility Expense. 

 

However, if you're unsure on which one to pick, I'd recommend consulting with an accountant. They are the best experts with posting transactions and ensure your books is accurate come tax time. 

 

Here's an article for additional reference:

 

Create, modify, and print checks

 

This should give you an overview about writing checks in QuickBooks Desktop. Let me know if you have additional questions. I'll get back here to help! 

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Level 1

paying credit cards

Did you ever get an answer for this?  I use a credit card to pay vendor bills and I pay that credit card using my checking account.  I can't figure out how to avoid the double expense.

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Level 1

paying credit cards

I have the same question.  When I pay vendor bills with a credit card I have a balance due on that credit card.  I use my checking account to pay off the balance on the credit card.  How do I pay the credit card balance and not have it show up as an expense twice?

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Moderator

paying credit cards

Thanks for joining this conversation @nhuskerfan,

 

Processing payments using a credit card and settling credit balance requires double entries. One to account for the liability and the other for the expense itself. The process of writing a check is correct, however, you will need to first create a credit card charge for the purchase made. Here's how:

 

Enter credit card charges to put the amount you owe in the credit card account (Other Current Liability).

  1. Go to the Banking menu then use Enter Credit Card Charges.
  2. Pick the credit card account from the Credit Card ▼ dropdown.
  3. Purchase/Charge is the default. If you want to record a credit or refund you received through the credit card, select the Refund/Credit instead.
  4. Choose the vendor from the Purchased From ▼ dropdown.
  5. Add the date of transaction, then enter a memo explaining the charge.
  6. Choose the Expenses or Items tab and enter the expenses/items you want to track.
  7. Lastly, hit Save & Close.

To make the payment, the steps will differ on when you pay the balance before or after reconciliation. Refer to the steps provided in this article for the steps: Set up, use, and pay credit card accounts

 

Let me know if you have any questions along the way. I'll be right here if you need help. Have a nice day!

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