How to Pay your Credit Card Bill in QuickBooks



Pay your credit card in full each month - paper check or online

#1 - If you pay your monthly bill in full, just Write a Check to the credit card company. You will then "expense" the charges in the accounting section of the check.
Don't forget that you have two tabs in the section where you enter your expenses....one is for expenses, and one is for items (affect inventory & Cost of Goods Sold). You can switch back and forth between the two tabs in order to record all expenses and items purchased with the credit card.
The total of the two tabs should equal the total of the Credit Card Amount you wish to pay.
If you pay your card online, you can enter "online" or the authorization number as the check number.

#2 - Select Enter Bills to create a bill. Use the same method to "expense" the charges as you did in Method #1. Then you can schedule the bill for payment at a later date.
Record all Credit Card Charges - Make Partial Payments Monthly

#3 - My preferred method to record credit card payments in QuickBooks is to use the Enter Credit Card Charges method. You will always use this method if you do not pay the credit card in full each month, but I use it regardless because it allows me to reconcile the credit card account monthly.

Select Enter Credit Card Charges and then either enter purchases & credits individually or you can create a vendor called "credit card purchases" for example and record one credit card charge in the same way you entered the check or bill in previous examples. Note: if your credit card statement spans two accounting periods, you may want to enter TWO separate charges if you use the bulk method...one for the first month's purchases on the statement and one for the second month's charges.

Then when you are ready to pay a portion of the current statement, you simply enter a bill for the amount you wish to pay and expense the payment to the CREDIT CARD (in the chart of accounts, the credit card account is near the top - this is liability account, so when you post charges, the amount increases and when you make a payment coded to the credit card, the amount decreases) .
Do not split the bill's expenses if you use this method!
You've already done that on the credit card charge.

Now reconcile the account just as you would the checking account! No one handles Credit Card use or reconciliations like QuickBooks does! Try this method....I find it really "ties" everything together.

QuickBooks Online now offers the option of receiving credit card payments through Credit Card Processing!

Got a QuickBooks Mess? 
Call The QuickBooks Gal!
775-348-9225
www.qbgal.com

Comments

  1. UnknownNovember 24, 2013 at 5:43 AM

    Great article ...Thanks for your great information, the contents are quiet interesting

    Low apr

    ReplyDelete
  2. AnonymousJuly 11, 2016 at 6:53 AM

    Thank you for sharing such great information. It was very informative and has help me in finding out more detail about Credit Cards!

    ReplyDelete
  3. Nava land scapesNovember 15, 2016 at 4:30 AM

    Hi there, I read your blogs on a regular basis. Reading this post reminds me of my previous room mate! He always kept chatting about this. Thanks for sharing.
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