QB Recording Credit Card 1



With this option, you have to enter individual transactions from your credit card, as follows:

  • From the Main menu, select Banking > Enter Credit Card charges.
  • Select the credit card account you want to use in the Credit Card field.
  • Select Purchase/Charge or Refund/Credit button.
  • In the purchased From field, select your vendor from drop-down list.  Create one selecting <Add new>  for a new vendor if necessary.
  • Enter appropriate date, reference number, amount, & memo in the Date, Ref. No., Amount, & Memo  field.
  • Similar to entering Bills, use Expenses tab to enter general expenses; or use Items for inventory or customer related transactions.


QB Recording Credit Card 2

 

The advantage of using this method is you can reconcile your credit card account as in reconciling bank accounts, as it has its own register.  The disadvantage is your vendor’s list is getting longer quickly as you have to enter it in the Purchased From field discussed above.
If it’s not important to keep track of the vendor’s name, such as gas stations or convenience stores, you can create  generic name (like Gas Stations or Convenience Stores) as  vendors to capture all purchases of gas or from convenience stores.

 

     2.  Create Credit Card as a Vendor.

The second way is by creating your credit card as a vendor, simply by adding a new vendor in your vendor’s list.  In other word, when entering your credit card charges, you will treat it similar to entering bills by first selecting Vendors > Enter Bills from the Main menu, shown below:

 

QB Recording Credit Card 3

 

  • Choose Bill button to enter charges, or Credit button to enter credits.
  • A/P Account field is defaulted to Accounts Payable as it should be.  Choose appropriate accounts payable if you have more than one.
  • Select the vendor name from the drop down menu in the Vendor field.  In this example, the Credit Card Vendor as a vendor name was created and selected.
  • Enter appropriate Date, Ref. No., Amount Due, Bill Due, Terms, & Memo.
  • Enter each transactions that appear in your credit card in Expenses tab from general expenses, or Items tab for inventory or customer related transactions.

The advantage of this method is you don’t have to add each payee to your vendor list and any outstanding amount of your credit card is recorded within your account payable and reported as such.
The disadvantage is you have to wait until you receive credit card statement before you can enter the charges.