Expenses paid with credit card

Hello,

Thank you for the help, I was able to match the expense transaction on the credit card to the insurance bill.

Now that the credit card bill, how do I process a bill for the credit card? Do I put the payee as the credit card bill company and then the category as accounts payable?

Hello there, MoscosoPayments.

I'll be happy to guide you in processing a bill for the credit card company in QuickBooks Online (QBO).

You'll have to enter the name of the credit card company in the Vendor field and choose the appropriate expense account that corresponds to the type of expense incurred on the credit card in the Category field.

To do this, let me show you how:

1. In the left menu, click the + New button.
2. Choose Bill.
3. Enter the name of the credit card company or the vendor associated with the credit card bill in the Vendor field.
4. Select the appropriate expense account that corresponds to the type of expense incurred on the credit card in the Category field.
5. Enter the amount of the credit card bill in the Amount field.
6. Optionally, you can add a memo or any other relevant information in the respective fields.
7. Choose Save and close or Save and new to save the bill.

By categorizing the bill under the appropriate expense account, the system will track the expenses and update your accounts payable accordingly.

For more details in recording expenses, see this article: Enter and manage expenses in QuickBooks Online. It also contains a video for your visual reference.

For future help, I'm attaching our Community link if you need assistance managing your expenses: Expenses and vendors.

I'm here to help if you have more questions about recording a bill or any QuickBooks concerns. Feel free to click the Reply button. Have a great day.

Hi Mirriam,

I am still a little confused with how to categorize the expense account for the credit card bill. We have expenses (ex. coffee shops) and then bills paid with the credit card. I believe the bills are applied to the accounts payable category. I want to enter a bill for the credit card, and pay down the amount on the credit card.

• Do I have to break each transaction on the credit card as a separate expense on the bill? 
• For bills paid with the credit card (like insurance) do I put the category as accounts payable or the insurance category?

I am just worried that expenses will be double counted.

It can be challenging to categorize your expense account for the credit card bill, @MoscosoPayments. No worries, I'm here to share insight about the categories in QuickBooks Online.

Bills will automatically apply to the Accounts Payable in QBO. Since you already recorded and paid the bills through your credit card, it is unnecessary to break down the transaction as a separate expense and categorize it, thus avoiding the risk of duplication. 

Moreover, you can only use and enter the category in the bill if you want to track it in your credit card payments. To do this, you can follow the steps provided by my colleague above.

On the other hand, for the insurance paid with your credit card, you can use insurance expense as its category. If you're uncertain about what category to use, you can consult your accountant to guide you. 

Additionally, you can check this article to manage your credit card payments: Record your payments to credit cards in QuickBooks Online. 

Don't hesitate to send a reply or visit the Community if you have other questions about expenses and bills paid with a credit card. We're here 24/7 to help. Have a nice day!

Hello,

I successfully made a bill for the credit card statement.

My steps so far:

• I made an autopayment with my bank account. Originally quickbooks matched the bank account debit to the credit card credit, and not the existing bill. 
• I tried applying the Chase debit to the bill, and as expected the Accounts Payable decreased.

I have two issues:

1. The American Express card still has a transaction for a credit, it is not seeing that the credit is related to the bill.
2. The bill did not close, as I did not pay off the full amount of the credit card. How do I process this correctly? Because a new credit card bill will arrive in the next month.

It's nice to hear from you again, Moscoso.

When you receive your monthly credit card statement, you can record it as bill in QBO. However, know that you cannot close a bill if there is still a credit transaction. Also, including the insurance amount during the billing process could result in double payment of the insurance bill. To avoid this, don't include the insurance amount so you can record only the remaining expenses from the credit card statement.

Moreover, if you receive an insurance receipt, it's easy to record its as a bill in QuickBooks. You can use the "Match" feature to connect the bill to the imported transaction for the insurance payment, which effectively links the transactions and the bill together. It will ensure that the transaction and the bill are connected and accounted for accurately.

It is necessary to verify that your autopayments are linked to the appropriate bill instead of your credit card. After completing this step, you can manually match any transactions on your American Express card that still have credit to the credit card balance.

For more extensive information on reconciling your account, you can refer to this article: Reconcile an account in QuickBooks Online.

If you have other questions regarding matching and linking your bills, don't hesitate to hit the reply button and leave a comment below. The Community space is always here to help you.

"Category" is not the issue.

The question is:

How do we pay the credit card that was used to pay the original bill?

In our case, we are in Desktop Enterprise.

We enter the bill.

We 'pay the bill by credit card,' and choose the credit card.

Then, we can't find the Credit Card that was used at the bottom of the 'Pay Bills' screen, earlier in the month.

We need to get to the "Pay Credit Card" Choose the credit card, pay the credit card bill.

Please define your answers based on the foregoing.

In our case, we can't even find the 'credit card' registry.

You can use write check to pay your credit card, @BlackWidos. I'm here to walk you through the process.

Before we begin, let’s ensure that your credit card account is active. We can check if this account is still in your Chart of Accounts by ticking the Show Inactive Accounts checkbox. This will display all the inactive accounts in your QuickBooks Desktop and allow you to verify their status.

Here are the steps to check your account status:

1. Go to the Accountant menu.
2. Select Chart of Accounts.
3. In the bottom portion, click the Account button.
4. Select Show Inactive Accounts.
5. Look for your credit card account.
6. If you wish to make it active, click the X mark beside the account name.

I’ll provide a screenshot of these steps for your reference.

If you're having trouble locating the account after following the steps above, we can restore your company file from a previous backup to reverse any changes made. Let’s identify the most recent backup of your QuickBooks Desktop (QBDT) company file before the account went missing. For assistance, please refer to this article: Restore a backup of your company file.

Once that is done, you can pay your credit card by creating a write check. I've also included a detailed resource on writing checks that may come in handy moving forward: Create, modify, & print checks.

Feel free to leave a comment below if you have further questions about paying bills and recording credits in QuickBooks. I'm always here to help. Stay safe!