USA Credit card charges

[Mary7]

Hello,

I have a question on how to enter old credit card charges in QuickBooks? I have an idea on how to set it up create vendors, enter the charges. But i am not sure on how to enter the payments we already enter. Do I enter them as credits to reconcile the statement. We only have Credit card and we charge all the charges to fuel expense for example. That credit card is used for many charges not only fuel (amazon, travel expense hotel, parts, etc.) We do on line payment

 

[Victor Shah]

Mary7,

There seems to be some confusion here. Interpreting your question,
1. You have already recorded the payments for the credit card and bank has been reconciled.
2. Now you have received the credit card statement and you want to classify each expenses incurred with that credit card. But then the question is how do we record the already recorded payment made to the credit card?

Question 1 - What account was the payment to credit card recorded to? You need to nullify effect on that account, too! So yes, if you want to enter a credit, enter a credit to the same account where the payment to credit card was posted and that will reconcile your credit card statement and effect on a separate account will also be eliminated.

 

[Mary7]

Mary7,

There seems to be some confusion here. Interpreting your question,
1. You have already recorded the payments for the credit card and bank has been reconciled.
2. Now you have received the credit card statement and you want to classify each expenses incurred with that credit card. But then the question is how do we record the already recorded payment made to the credit card?

Question 1 - What account was the payment to credit card recorded to? You need to nullify effect on that account, too! So yes, if you want to enter a credit, enter a credit to the same account where the payment to credit card was posted and that will reconcile your credit card statement and effect on a separate account will also be eliminated.

Thanks

 

[Mary7]

Thanks Victor!
Yes, you are right on question 1 and 2 (Capital one) was paid and charged to Fuel expense every single credit car payment goes to that fuel expense acct. The bookkeeper was doing it this way, i am kind of new in this company and i would like to allocate to the right expenses, but i don't have much experience and i don't want to get it worse. There is a balance on credit card, but it does not show on my Balance sheet because we just enter the credit card payment. I need to set it up, but should i start fresh next month or i still can enter old statements and fix them.

 

[Victor Shah]

Mary7,

You can go back and correct the previous months as well until the books are not closed. Ideally you can go back in the current year but not in the previous years, if the returns have been filed.

Easy and convenient option -
For the previous months, you can reclassify all payments entries from Fuel Expenses to whatever are the actual expenses are. From current month, you can set it up Credit Card and start fresh from current month.

I hope this make sense.

 

[Mary7]

Mary7,

You can go back and correct the previous months as well until the books are not closed. Ideally you can go back in the current year but not in the previous years, if the returns have been filed.

Easy and convenient option -
For the previous months, you can reclassify all payments entries from Fuel Expenses to whatever are the actual expenses are. From current month, you can set it up Credit Card and start fresh from current month.

I hope this make sense.

Hello Victor!
Thank you so much for your time and feedback.
I will try to enter only this years statement charges. Since I am not a 100% sure on how to fix them,
Could you give me some examples on how to fix them.How do i reclassify the payments?
one way could it be if i go the the payment and do a split reallocating the expenses?