How to Record Credit Card Transaction in QuickBooks Online

 

How to Record Credit Card Transaction in QuickBooks Online fastest Bookkeeping Services

Would you like to easily record credit card transactions into QuickBooks online fastest Bookkeeping services?  Well in this articles of QuickBooks online fastest bookkeeping start from Crash you will learn exactly how to record every type of company credit card transaction.   

If you have any questions about this topic you can leave them in the comments section below and I’ll do my best to help you and of fastest bookkeeping if you feel the article helped you I hope you will follow our blog and get updates on new articles that come out all the time.  

Company Credit Card Transaction

• Recording Company credit card transactions is almost exactly the same as recording transactions in the company bank account. 
• There are three separate windows in QuickBooks online for all three kinds of company credit card transactions.

1. The expense window is what you will use to enter the Credit Card Charges. 
2. A window to enter Credit Card Credits is a special and separate window that you will record the refunds and returns from your credit card purchases.
3. A separate window just to make Credit Card Payments to decrease the credit card balance.

Credit Card Charges

On January 8, 2022, paid U.P.S.  For a business related delivery   with the company's American express credit card -$200 and on the slip that came from the credit card machine the transaction #6543

Whatever you must use the expenses window!!  To record this quickly and easily.   

So what will be the results in the trial balance after you record this credit card charge?  Well the delivery expense is $200 more because you just paid for the $200 delivery expenses. Therefore delivery expense will become $1700 and because you now owe American express credit card balance $200.  American express will show up for the first time in the trial balance as $200.  

 Record Credit Card Charges

Let's take a look at how to Record Credit Card Charges?  Now remember all credit card charges are recorded in the expense window. So you click new go to the column of vendors and click expense.   Now what makes this work is that the payment account at the top of the expense window. Should be changed to American express credit card then you can put in whom you're paying   in this case UPS. Then you can put when you're paying in this case January 8th of 2022, of fastest bookkeeping.  You can put why you're paying which in this case is the delivery expense.   Don’t forget to put in the reference number whatever that was 6543. So we put in 6543 of the fastest bookkeeping amount 200. We click save and close. 

We can check reports trial balance and you can see   that the numbers are exactly as what we predicted delivery expense became $1700  and American express credit card showed up for the first time as $200. 

On January 9, 2022   we paid Ronda’s repair shop $1200 with the business American Express card for fixing the office door and that's transaction # 84722748. 

Whatever so again we must use the expense window for Credit Card Charges.  What will be the result after this Credit Card Charges? Well we know that we have $1200 in repair expenses. So repair expenses will show up in the trial balance for the first time as $1200. Because we owe now $1200 more on our American express card balance. American express balance will increase to 1400 dollars after we make this Credit Card Charges. 

So let's take a look at a new expense. The date is January 9, we're paying from the American Express credit card and we're paying   Renders repair shop and the reference number was 84722748 of fastest bookkeeping. The reason why we're paying is because of repair expenses.  

You see if you type in the first two letters of the account name.   it will help you by filtering so we can find repair expense  and now the amount is $1200  when we click save and close, the trial balance   shows exactly the results we expected repair expense is here for $1200  and we now owe a total of $1400 to American express credit card. 

Credit Card Credits

Now dealing with credit card credits is just as easy.   It’s exactly the same thing as recording credit card charges it's just as simple.   But you have to use the specific Credit Card Credit window in order to record a refund   or a chargeback or a credit for your company credit card. 

 

On January 10 UPS gave a $50 credit for the delivery that was done back on January 8th   the prior delivery was overcharged by them the decrease in the American Express card   was from transaction # 616161

You must use the specific credit card credit window. So what   will the results be if ups gives us a $50 credit for a prior delivery? Well if the credit is for a prior delivery overcharged that means we have less in delivery expense by $50.  That means delivery expense decreases to $1650.   It also means that we owe American express $50 less.  So American express credit card balance will decrease to $1350   and these are the numeric results after we properly record our first Credit Card Credit.  

So in the top left we click new and then we go over to vendors and go down to Credit Card Credit.   this is the correct credit card account it was  ups that gave us the credit now remember the date was January 10th.   Most important to remember is that if the original charge had delivery expense.   Then the credit for that same transaction will also have delivery expense and the amount of $50. When we click save and close   you can see the results are exactly as what we expected delivery expense is $1650 and the balance in American express is $1350. 

Credit Card Payment

Now we will deal with the last credit card transaction credit card payments.  it's exactly the same as recording credits it's just as simple but you   have to use the specific credit card payment window to record paying down the credit card.   

On January 11, 2022 we paid the American express card   $150 with an online payment from our bank account and that was transaction   #7171.

 You must use the specific credit card payment window. So what will the results be after paying down the credit card by that amount? If we pay down the credit card by 350 cash over here will in the bank will be $350 less and become $5050  of fastest bookkeeping. if we now owe $350 less on the credit card then the balance of American express will go down to $1000 .   

Record Credit Card Credit

So this is how we record that we click new and go all the way over to the column of   other and click pay down credit card. This window is self-explanatory.  This is the credit card that we paid. you should add the credit card company   as your payee but we can do that later in the vendor window the amount you paid was 350 dollars and the day that you paid the credit card was the 11th now all you have   to do is choose which bank account or bank type of account the payment to the credit card came from   cash and chase bank. If you wrote a check you'd click here but we didn't click save and close. 

Now you can see the results are exactly as what we expected. We now have 350 dollars less in our bank account and that's the balance we expected of fastest bookkeeping. We now only owe American express a 1000 dollars for the charges.   Minus the 350 dollar payment that we just made to decrease the credit card.