The credit card provides facilities to the holder of borrowing funds for paying bills or to make a purchase. To keep a track on payments and charges, you can set up your credit card in QuickBooks and use it for expenses and payments.
First of all, let’s check how you can you set up credit card accounts
- Open settings and then an open chart of account.
- Now, click on the account and then click on New
- Now, click on Credit Card and then click on Continue.
- Open Account window:
- Enter the credit card name
Point to be noted: For a sub-account, first, check the sub-account by following the path – Open drop-down→ Click on parent credit card account.
- Now, click on the Opening account balance (On the basis of the statement of the card), type ending balance of the statement and date. Now, click on OK.
- Click on Save & Close.
Enter the charges of the credit card
This shows the credit card account that you owe in the chart of account (Other current liability)
- Now, go to the banking menu and then click on credit card charges
- Now, from the selective drop-down, click on the appropriate account.
- The charge/purchase will automatically get selected. To record refund or credit that you have received through the credit card, click on the Credit/Refund instead.
- Open the drop-down, click on the purchased and then click on the vendor.
- Make sure that it has a correct date.
Point to be noted: You need to enter the memo that has refund or charges.
- Click on the Items tab or Expenses and then enter the items/expense you want to track.
- Now, click on Save and then Close.
Pay charges of the credit card
The credit card amount gets reduced by the amount that has been paid through the Write Check window. However, it is recommended to have the credit card amount paid at the end of the reconciliation. And, you can make the payment with the help of Write Checks feature. All the payments will be showcased in the credit card register along with the charges. The account may be taken as normal
- Go to the banking menu and then click on the write check button.
- Click on the drop-down of the bank account and then click on the bank account that you want to use to pay the credit card.
- Click on the payment and the date of payment.
- From the drop-down, click on the credit card company.
- Enter the payment amount.
- First, click on the expense tab and then click on the credit card account.
Point to be noted: First, click on the credit card account. Now, to make payment of the sub-account (s), enter a separate line for all sub-accounts and then select the account that you want to pay. The sum of all the sub-accounts will be equal to that of the parent account.
- Click on Save and then Close.
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