- Is there a better way to do the reconciliation such as needing to undo the original and then reconcile each sub-account and then what happens? Part of QuickBooks Simple Start For Dummies Cheat Sheet . Feel free to leave your questions or comments below. Let me help you sort this out. asked by Maggie Missing beginning balance data on Statement for Cash Flow by Month or Quarter report asked by Anonymous We recommend reconciling the main account and each sub-account. We have a master account with each person's credit card as a sub-account. https://quickbooks.intuit.com/community/Help-Articles/Resolve-a-Balance-Sheet-out-of-balance-in-Cash... QuickBooks Desktop Year End Prep and Resources, QuickBooks Accountant Year End Prep and Resources, QuickBooks Online Year End Prep and Resources, See Let’s take a more detailed look at how to enter QuickBooks credit card credits. You will need to check the TYPE on your chart of accounts. It's the "bank balance" column that is negative. This makes the customer’s Accounts Receivable $0 as well. I have 2 cards under one main cc account. Incorrect or no opening bank balance entered in QuickBooks; Transactions previously reconciled have been changed or deleted; So, there you have it! Then, you want to reduce the balance of the credit card for the EFT payment made. Once the statement comes from the credit card company, I then do the reconciliation to the master account by checking off the associated charges and credits. You can either edit the payment to spread it to the various accounts, or do a journal entry to reallocate the individual card balances. - Is this way ok for accounting purposes and for the sub-accounts? - Then, when I do the next statement from the credit card company, the beginning balance will be the credit amount of the current statement. How to Reconcile Credit Cards on QuickBooks When Getting a Negative Balance Check Opening Balance For New Accounts. When you go to the Bank Deposit window to group your credit card sales for the day, the negative and positive Refund will cancel each other out. Should you need more help with your credit cards and balance sheet report, please let me know. The amounts or balance showing on your balance sheet depends on the transactions entered to a specific accounts. First of all, having a negative balance on your card generally does no harm. I click on "reconcile" and get the detail and summary statements plus the bill. @quid I agree. A negative balance in Credit Card means that you have deposited amounts greater than expenses. Since you overpaid your bill, this will reduce your balance to negative $5.86. Technically, this method is not what the folks at Intuit, the makers of QuickBooks, want you to do. Or enter the returns or overpayments to each applicable sub-card account for this statement. How do I change the beginning balance on my credit card account? I've never been hard core on fixing my CC accounts within my books, but my new acct wants everything tip top. Products, Track I have linked this card with my QuickBooks online account. Record a credit memo and issue refund using the checking account (QB Desktop) or enter a Refund Receipt in QuickBooks Online (QBO) depositing to the checking account (not Undeposited Funds). When I make a credit to the main acct it comes in as a negative but will only go into an acct called main - other, which doesn't look right at all. The "Quickbooks" balance is $100. I do enter charges and credits to each sub-account, as appropriate, when they occur. If the Balance column is negative, you need to recheck your record transactions and reconcilation to troubleshoot a credit card balance. Therefore, I am not able to assign the individual balances to each sub-account (some owed and some have a credit balance). Double-click the account that has the incorrect opening balance. The sub-accounts have their own balances and transactions just like the main account. The negative will still show in the bank register. I have a business and I have a company credit card. Some people use it for a while and then graduate to the next method. Record a credit memo and issue refund using the checking account (QB Desktop) or enter a Refund Receipt in QuickBooks Online (QBO) depositing to the checking account (not Undeposited Funds). Lesson Wrap-up It's essential that QuickBooks Online users understand the difference between Credit Memos and Refunds. Most untrained users enter credit card payments to “Credit Card Expense” either using a vendor Bill or in the Banking transactions. When you look at the chart of accounts, the column labeled bank balance for your checking is -$100? It's a "Credit Card" account type with a "Credit Card" detail type. However, perhaps not a "negative liability". However, the fact that the bank balance does not equal the register balance can be a big red flag and a sign of trouble in your QBO. In summary, the QuickBooks Online balance for asset accounts will be more negative than the bank balance while the opposite occurs for liability accounts such as credit cards. Enter the ending balance from the credit card statement in the Ending Balance field. Click Save and close. Because of this the Bank Balance column for these accounts will normally be negative. When creating transactions from the credit cards you'll need to select the correct Expense accounts or Items. Lesson Wrap-up It's essential that QuickBooks Online users understand the difference between Credit Memos and Refunds. When I refer to the “bank balance” in this blog post – I am referring to the bank balance that QuickBooks calls the “Bank Balance” as shown below: Reason 1 – Timing differences The simplest reason why the bank balances does not equal the QuickBooks register balance is because of timing differences. Sales & I'd like to share with you some information about reconciling credit card account and balance sheet. Credit Card Reconciliation Tips in QuickBooks. Not the best way as the sub-accounts did not show the proper amount in each account but even our accountant said ok to do as we did as it was all in the same year. Otherwise, make the journal entry as above, and it will apply for the next credit card bill. Credit balances do not appear without a reason. So, the question remains: what is the best way to do the reconciliation? Actually, the best answer I have found and have been using, is to create a journal entry. The net amount through the checking account is the “negative” deposit, or the net amount taken out (credited) of the checking account. We've collected together the most popular articles for year end tasks When I saw my credit card balance, "I have $4k balance on the credit card" I can say in the Bank Balance section, but how would I read the bottom one? If you have a negative balance on your credit card account, the simplest way to bring your balance back to $0 is to make new purchases. Once the bill is generated, I then assign the balances due (or credit) appropriate to each sub-account. The balance will now be $0 for the payment. A negative credit card balance is a good credit card balance because it means you owe nothing to the credit card company, and they in fact owe you the amount showing as a negative. What you want to look at is the Balance column and make sure that is correct (positive). A negative balance, on the other hand, will show up as a credit. ... Payments on the card, however, only flow through to Maya’s card. Ensure that the account you used is not the main one, but one of the two sub-accounts. There are four basic steps to enter a credit card refund in QuickBooks Online: Click on the New button at the top of the left menu bar. You either overpaid your credit card account, or you paid your account accurately … Sales Tax. It's a "Credit Card" account type with a "Credit Card" detail type. IT IS A TOTAL SCAM. It sounds as if you are accustomed to entering a single charge for reconciliation purposes and then editing that charge to the sub-accounts. Solution. Normally, I reconcile to the master account and then, when the bill is generated, I line item each person's card (sub-account) with the amount owed for that card so that their balance due is offset by the payment. Select the credit card account you wish to reconcile. Here is a screenshot: When I click the amount, it lists all the amounts for which I used my credit card. - Leave what I've done to the next statement: I entered the ending balance as, for example, -1000, -  Then, I checked off all the appropriate last statement payments plus the current charges and credits, - Once it was balanced, I clicked on "reconcile" and saved the detail & summary pages, - No bill was produced since it was a negative/credit balance. A negative balance in Credit Card means that you have deposited amounts greater than expenses. Take care! All The payment will appear on the next credit card reconciliation that occurs. Thanks for getting back to us, BrandonPhoto. From (here)[accountingtools.com/questions-and-answers/… A negative liability typically appears on the balance sheet when a company pays out … into ... QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services. When you enter the bill or check, make sure to select your credit card account in the Account column and enter the full amount paid. Sales Tax. When creating transactions from the credit cards you'll need to select the correct Expense accounts or Items. The "Quickbooks" balance is $100. Instead, they must report it as a balance of $0. I also suggest consulting with your accountant to be sure of your accounts and what you'd need to do based on your unique business. Sorry for the delayed response. Select the Credit Card option. Did you ever get a solution to this problem? We've collected together the most popular articles for year end tasks This makes the customer’s Accounts Receivable $0 as well. Select Credit card credit in the Vendors column. I had to pay my list bill outright, without reconciling because the balances remain off :(. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. It was basic info but did not deal with a master account with sub-accounts and when the credit card statement is a negative (credit due). The net amount through the checking account is the “negative” deposit, or the net amount taken out … You will see a negative balance begin to develop on Maya’s card since that card is getting credit for all the payments. Fortunately, we are small in the credit card area so I entered the credit amount for the "balance" when reconciling the main account and just waited until the credit was used up on subsequent purchases - until we had a balance due as no bill is created when it is a negative amount due. You will first need to check the account TYPE in the Chart of Accounts. This causes duplicate expenses and a mess in the credit card liability account. If these discrepancies are substantial it is recommended that you consult with your CPA. Once we owed on the credit card account, I put the total due on the main account and then when creating the bill part, I put in what each sub-account owed/was credited in total since the "credit" part started. To keep track of your debits and credits in QuickBooks Simple Start, remember that the left (debit) is the natural balance for asset accounts, and the right (credit) is the natural balance for liability and owner’s equity accounts. Be sure to have your credit card statement handy. Turning Credit Memos into Refunds takes time that could be used for better purposes. Setting up a credit card account in QuickBooks. You can even use sub-classes. In most cases – no. The only problem is that when I record a payment it makes the negative balance greater Example: Balance = -$10,000.00, I record a payment of $3000.00 New Balance = -$13,000.00 To further the complications, when I record a charge, rather than … This will get everything nice and organized in your QBO account once again. However, since this is a credit balance on the statement from the credit card company, when I put in the ending balance as a negative amount and reconcile to the master account, no bill is generated. The trial balance has been entered one day before the QuickBooks start date. There's no way to boost your credit score by overpaying your credit card bill. - What is the best way to do the reconciliation? To better isolate this issue, you may want to check the transactions associated with the Chase CC 77 main - Other. OR something else? But on the balance sheet this comes in as main CC: other and a negative number. Since a check or bill for the additional payment will not be created as part of the reconciliation process, a check or bill must be entered and coded to the credit card account. We received a credit card statement that shows a credit ("negative") balance = no payment due. How do I remove a customer credit (or negative balance) on their account? In our case, we have several credit cards that are associated with the master account. Thanks for joining us again here in the Community. Overview A positive (black) balance in a credit card account indicates that you have paid more than the amount due and have a credit balance. Record the deposit of just the credit card charge (s) separate from the refund. It would not be considered a “recommended method” by them or frankly, by us. 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