Overpayment of credit card

Revitalize_Bookkeeping · ‎March 04, 2020

My client does not have customers as they are paid by one company for their fee's. They had a credit card balance of $644.03 but paid $692.02 which included 2 entries that were not in the total amount due as they were on the next statement cycle. This results in a credit of $47.99 showing when I try to reconcile. How do I resolve this? Do I reconcile with the credit balance showing? Do I create a journal to clear the balance and then reverse it once I've reconciled? She has done this with a few different months so I want to be clear on what I need to do. FYI - I have already told her to set up auto payments.

MirriamM · ‎March 09, 2020

Thanks for reaching out to the Community forum, @Revitalize_Bookkeeping.

When doing reconciliation, you can enter the ending balance as a negative amount so that it will carry over to the beginning balance on the next month. Doing so will offset the transaction on the following month when payment is applied.

To split banking transaction, here's how:

In the left menu, click Banking.
Go to the Banking menu at the top.
Tap For Review section.
Click the transaction you need to assign multiple Payees and select Split.
For each part of the split, enter a Category, a Payee, and the Amount. Click Save and add once finished.

For additional guidance on the best thing to do in this kind of situation, I suggest reaching out to your accountant. This is to ensure correct tracking of your account.

Should you need further assistance, let me know by commenting below. I'm always around to help. Have a great day!

View solution in original post

MirriamM · ‎March 09, 2020

Thanks for reaching out to the Community forum, @Revitalize_Bookkeeping.

When doing reconciliation, you can enter the ending balance as a negative amount so that it will carry over to the beginning balance on the next month. Doing so will offset the transaction on the following month when payment is applied.

To split banking transaction, here's how:

In the left menu, click Banking.
Go to the Banking menu at the top.
Tap For Review section.
Click the transaction you need to assign multiple Payees and select Split.
For each part of the split, enter a Category, a Payee, and the Amount. Click Save and add once finished.

For additional guidance on the best thing to do in this kind of situation, I suggest reaching out to your accountant. This is to ensure correct tracking of your account.

Should you need further assistance, let me know by commenting below. I'm always around to help. Have a great day!

duckster116 · ‎February 18, 2022

The easiest solution would be to enter the ending balance as a credit, I.e., a negative number, but QuickBooks doesn't allow that. Is there a way to enter a negative ending balance in QB? The minus sign just signals calculator mode.

Rasa-LilaM · ‎February 18, 2022

Thank you for posting on this thread, duckster116.

Let me help and guide you on how to record your transactions. This is to ensure you can reconcile the account seamlessly.

We’ll have to write a check to record the credit card payment instead of entering a negative amount. Doing so will correct the ending balance amount.

Here’s how:

In QuickBooks Online (QBO), hover your mouse to the New menu in the upper right and choose Check under Vendors.
In the Payee field, select the vendor’s name for the credit card payment.
In the Bank Account field, pick the bank account or credit card from which the payment will be made.
Fill in the remaining fields with the right information.
Navigate to the Category details section and choose the account used for the payment.
Type the description about the entry and the account.
Press the Save and Close button.

For more in-depth information into this process, tap here to see the complete details. It includes instructions on how to record credit card payments, pay the bills, transfer the payment, and match it with the new account.

You can also utilize the links below for future reference. These resources contain topics about the reconciliation process, as well as troubleshooting steps to resolve opening or ending balances issues.

Keep me posted below if you have additional questions on how to correct your ending balance. I’ll be glad to answer them for you. Have a great rest of the day.

Topics

Training

Community

Resources

Overpayment of credit card