problem reconciling credit card account

I appreciate you for sharing this with us, Noel. I'll be helping you in locating the deposits in your QuickBooks Online (QBO) account.

To start, we need to understand the credit card reconciliation process.

Credit card reconciliation typically involves reviewing charges (payments) made on the credit card. Deposits are not usually expected unless you're receiving credits or adjustments.

You can navigate it from the Chart of Accounts (COA). Here's how:

1. Go to Gear icon
2. Hit the Chart of accounts, and review the transactions you made.
   
   
    
    

    

   

    

Verify that all entries related to the credit card are recorded as expenses or purchases, not as deposits. If a deposit is incorrectly entered, it would not typically reflect in credit card reconciliation.

It is essential to review all the transactions to ensure that all the records are aligned. These are the ways to view all of the records:
 

1. Review Credit Card Statements:
   • Compare your QuickBooks transactions with your credit card statement to ensure all entries are captured accurately.
2. Re-run the Reconciliation:
   • Go to the "Accounting" menu and select "Reconcile."
   • Choose the appropriate credit card account you wish to reconcile.
   • Verify that the transactions are now showing correctly.
3. Check for Duplicate Transactions:
   • Ensure there are no duplicate entries that might be inflating either the payments or the balance recorded.

Lastly, On your bank deposit page, below the "Add funds to this deposit." The account indicated should be "Credit Card."

Following these steps, you should be able to identify why deposits are not showing and rectify any misclassified transactions in your QuickBooks system.

You can read this article to guide you in resolving reconciliation issues: Fix issues at the end of a reconciliation in QuickBooks Online.

I'll be adding these articles for future reference if you start reconciling again:
 

• Learn the reconciliation workflow in QuickBooks.
• Reconcile accounts in QuickBooks Online.

If there is anything else I can help you with. Aside from reconciliation, please let me know by leaving a comment below. I'd be more than willing to lend you a hand, Noel.

Hi,

thank you for your quick response, we do not purchase with our credit card so there is no expenses, this is money that customers have tapped our credit card machine to make a purchase from us.

My bank reconciliation is correct. But, when I try to reconcile my credit card account the items are showing as "Payment", but, no payments were made by us

Best Regards,

Noel 

@TUSSU 

"when the money comes into the bank from the credit card account"

Is this a cash advance?  I'm confused as to why you're creating a bank deposit from your credit card.  That would be depositing cash to your bank account and creating a charge to your credit card.  

"However, when I try to reconcile my credit card the entries are showing as payments and not Deposits, how do I correct this?"

If you assign your cc account to a bank deposit in QB as you described, the deposit will show as a "Deposit" when you reconcile your bank account and as a "Charge" when you reconcile your cc account.  There's no "Deposit" column when you reconcile a cc.  You can only create a charge or make a payment.  A bank deposit will not create a cc payment as you described.  Can you post a screenshot of the bank deposit and the cc account reconciliation?     

@TUSSU 

I think we were typing responses at the same time.  

"we do not purchase with our credit card so there is no expenses, this is money that customers have tapped our credit card machine to make a purchase from us."

This transaction has nothing to do with your credit card.  Your credit card is only used when you make purchases with it.  Are you not using a sales receipt?  That is the proper way to record cc transactions when customers purchase from you in person.  If you're not using a sales receipt, assign the deposit to the appropriate income account.    

AAH I never though of Sales receipts, I don't have a financial background and am trying to find my way with Quickbooks. I have assigned the deposits to the credit card account and it is fine when I reconcile the bank.

the problem arises for me when I try to reconcile the credit card, the entries show up as payments rather than deposits.

Should I undo the bank reconciliation and record the entries as sales receipts?

Thank you for your help

Best regards,

Noel

@TUSSU 

"Should I undo the bank reconciliation and record the entries as sales receipts?"

You have a couple options:

1) Keep the deposits and reclassify them from the cc account to the appropriate income account if you know what that is.  That's easiest and won't mess up your bank recs.

2) Delete the bank deposits and replace them with sales receipts.  Sales receipts are Product/Service based, meaning you need to create a product/service and assign an amount to each.  You will need to re-reconcile.

If you have never used a bookkeeper before, I'd strongly suggest getting one that is fluent in QB Online.  If you want to do it yourself, hire one to walk you through how to record sales, expenses, etc.  Or, there are some great YouTube videos out there... 

Thank you I will certainly look into some kind of training, if I re-classify from the CC to the appropriate income account to me this is the bank as the money is going from the cc to the bank. then the cc reconciliation is correct but, my bank rec is out by that amount.

Regards,

Noel

@TUSSU 

"I re-classify from the CC to the appropriate income account to me this is the bank as the money is going from the cc to the bank. then the cc reconciliation is correct but, my bank rec is out by that amount."

Why are you referring to your credit card?  Disregard the fact that you can choose a credit card under "Payment Method" when entering a deposit in QB.  That has nothing to do with your credit card, it's just a way to track what type of payment you received.  When you get a payment from a customer, it doesn't affect your credit card account in any way - at affects your customer's credit card.  Only two things happen from your perspective when a customer buys from you on their credit card - 1) you get funds deposited into your bank account, and 2) you receive income.  That's why you assign an income account to the deposit.  The deposits increases your bank account so you can reconcile it.  There's nothing that hits your cc account nor should there be. 

Thank you yet again for your quick reply and apologies for wrecking your head, my understanding is that in the bank deposit screen the first entry I put in is under the heading, "Account", I am assuming this means the account that the moment has come from which is the CC. Then on the "Add funds to this account", the "account " signifies where the money is going too which is the bank. I will have to watch some videos for clarification on this whole procedure

Best Regards,

Noel