Enter the debit or credit amount for the account you've selected into the Debit or Credit columns. Unfortunately, this one time I entered it as a bill which has already been paid and cleared. Since you cannot use a Journal Entry to adjust the Account in QuickBooks, you need to post the same debit and credit to the General Ledger that you would have entered on the Journal Entry, but you have to use another transaction type that allows you to adjust one or more Items as well. Our Established Community @qbteachmt's is correct. Grateful for your help. You also did not buy everything on that one date. All debit card transactions should be entered directly into the bank account’s check register, not via the Credit Card account type. The expenses on the bill need to be categorized correctly. If you use a Bill to reflect the credit card balance, you are hiding CC debt in AP liability. Not AP. What is going to be debit? They do not sell Office Supplies. I created this How to Training for You. What if you use the points to get gift cards? I appreciate you outlining the specific entries. New Purchases & Finance Charges Make a Journal Entry when you receive your credit card statement (example below), or make individual entries each time you make a purchase with your credit card. And this method does not affect the Credit Card Account in the data file, so if you already put the details in as individual credit card charge expenses, this Batched Bill would have Duplicated these details and that is an error; the bill in this example is supposed to show only the CC account. Have set up an "other income account" - what's the offsetting entry? Since the bill is already linked to the credit card charges, make sure the credit card details are not entered twice in your account. Import Journal Entries from Supported File Formats directly into QuickBooks Desktop using SaasAnt Transactions (Desktop) - #1 user rated and Intuit trusted bulk data automation tool built exclusively for QuickBooks.. SaasAnt Transactions (Desktop) supports QuickBooks Pro, Premier, Enterprise, and Accountant Editions. How do I record credit card cash back rewards that... How do I record credit card cash back rewards that DO NOT reduce the balance due on the account? Because this bill has been paid and cleared I need to know how I can get this linked to the credit card. For QuickBooks Enterprise users, you can access the Batch Enter Transactions from Banking, on the menu bar. What is the best process for recording AmEx charges we make and payment to Amex. The type of the account will be Credit Card. Let me help and ensure the credit card charges are properly recorded, so it won’t throw off your records. When I imported the refund transaction into QuickBooks, I was at a loss as to where to put the rebate. Just Edit that bill; as the "expense" listing, remove any details. ? Use the QuickBooks Help command to search QuickBooks online help for the topic recording a credit card payment. Products, Track This will now link the bill to the credit card. Never mix AP into your management of the CC liability account. To delete the transaction, choose Edit → Delete Credit Card Charge. You do not use a Bill for it, nor for showing you intend to pay it later; Paying it using Bill is hiding the amount in AP, which implies the CC is Paid and cannot be properly reconciled next time unless that Bill was paid, in full. This option is commonly used in QuickBo oks Desktop, but also works with QBO. If not I am not sure what other account to use besides the credit card when doing the journal entry. We've collected together the most popular articles for year end tasks Interested in more information? However, I have a purchase and the reward points on different cycles. Input the credit transaction information. This will now link the bill to the credit card. Have a good day. This account is an “Other Currently Liability”. You just bypassed Cash vs Accrual basis reporting, for the most significant reason not to do this. Let me show  you how: For Journal Entries, you'll have to change the account to Accounts Payable to change your vendor balance. "And enter the credit card as the expense on the bill?". Pull up the Journal Entry screen and check the date and the journal number. This is all very clear." To manually enter your credit card charges, go to Banking>Enter Credit Card Charges, or find the “Enter Credit Card Charges” icon on the QuickBooks Pro home screen. This is to remove an old credit so that the credit card can be closed. Connect with and learn from others in the QuickBooks Community. A QuickBooks ® account should be established for each credit card the client has for its business. I was planning on using a distribution account but unclear on the credit side of the equation. Since the bill has already been paid, you'll just need to click Pay Bill and apply the credit. you do not track the points until you use them, then they are income to the business, either they are applied as a cc credit reducing the balanceoryou get a check which you deposit and use an income account as the source (from) account for the deposit, I create an income account called rewards income, but it is up to you. To create a new journal entry, select “ New ” from the navigation menu on the left side and select “ Journal Entry ”. Entering the reward amount as a refund or credit through the credit card menu reduces the amount due but that's not how this card works. Now I want to record an journal entry for the points that was converted into dollars. Do you have to account for this? Create a Journal called “Credit Cards” or you may prefer to have a separate journal for each card. A company has credit card sales of $50,000, and the bank charges a 2% credit card fee. What if you use the rewards to purchase business travel airline tickets? A company processes $120,000 of credit card sales during a day. Accounting you need to know about Debits and Credits in Journal Entries. The Check Expense lists only Credit Card Account as the category or detail type. Here’s what the IRS had to say in the later memo: “Taxpayers will make purchases with the credit cards, and as a result of those purchases, will  be entitled to receive rebates…. QuickBooks takes care of all the double-entry accounting behind the scenes. Yes; do that always. You would not make More Entries, as well. Create a journal entry to reduce (credit) the Credit Card Clearing account for the amount of the fees with an offsetting increase (debit) to the expense account where you record bank and merchant fees. We've collected together the most popular articles for year end tasks Is that the case? The debits and credits must be equal to make the entry balanced and allow QuickBooks to post the entry. Is it some sort of Other Income? If it's listed under "Other Income", isn't it taxable? I am going to credit the Other Misc. Now I want to record an journal entry for the points that was converted into dollars. Sales Tax. Specifically, points earned for purchase transactions are not taxable, but points earned as sign-on or account-opening bonuses are taxable. Cash back rewards should be an expense, not an income. What Is an Adjusting Journal Entry? If reward used during same statement cycle, it works out. You will use different forms in different circumstances. Yes, what I've read indicates the points are non-taxable. We can just use those points to purchase anything. Negative numbers or expenditures need to be entered as a Debit. Since the bill has already been paid, you'll just need to click Pay Bill and apply the credit. However, you did not buy anything from VISA or AMEX; they are your Lender. using the new credit card account you just created. Remember: Assets=Liabilities +Owner’s Equity. Each transaction must have a debit and a credit entry. I need the account balance to be the correct amount but I also need those charges to be reflected in the correct expense accounts. The Credit Card is the Source of spending, so it replaces the Credit Bank. Income. 1) Create a new "Credit Card Credit" entry for the Register of that Credit Card with the same amount and set the appropriate Chart of Account (I use cashback reward to offset bank's charges) 2) Unmatch the "Transfer" from the online banking download 3) Delete the "Transfer" 4) Match the entry with the new CC-credit transaction I just created. 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