Credit Cards Year End cutoff.


D

DLC

Received a year end adjusting entry from our accountants to reflect a
partial month credit card activity. The Amex bill spans two months
activity.

2200 Amex (Credit Card Account Type)
6565 Amex (Expense Account)

This month has already been reconciled.

Is there a "workaround" or a journal entry
to adjust this without changing the next months Beginning Balance..... and
reconcilating the adjustment.
 
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A

AngrieWoman

DLC said:
Received a year end adjusting entry from our accountants to reflect a
partial month credit card activity. The Amex bill spans two months
activity.

2200 Amex (Credit Card Account Type)
6565 Amex (Expense Account)

This month has already been reconciled.

Is there a "workaround" or a journal entry
to adjust this without changing the next months Beginning Balance..... and
reconcilating the adjustment.
I'm lost...

What month does your year end? What months are on the CC statement?
How can the statement be reconciled if all the charges for any given
month were not already entered into QB?

Is your Accountant adjusting for charges that were made, but not yet
processed by the CC company? I know sometimes we have a day or two
lag. If that's the case, the entry would be reversed on the first day
of the following year.

Angela
 
D

DLC

The auditor wants to expense the charges (detail on Amex statement) that
were incurred to 12/31/03 even though there are charges for January 2004.
These are all on one statement. He gave me an entry to adjust to the
"Credit Card" chart of accounts type. This totally wipes out my my next
reconciliation beginning balance with this adjustment. I'm a bit confused
also.....
 
A

AngrieWoman

OK, I see. It won't change your statement balances. It will only add
an uncleared transaction to the register. You will need to make a
reversing entry on Jan 01, then those two entries will pair off the
next time you reconcile your statement, even though neither entry will
appear on your statement.

Do you have your credit card set up as a sub account? Ours are set up
under 210 - credit cards. Then each card is a sub account under that.
If yours are set up that way, you could run your entries to the
parent account, which wouldn't affect the individual card activity,
but would make the "total liabilities" number correct. That's what we
do, because we have about 40 cards, and it would be too many entries
if we did it on a card-by-card basis.

Actually, you could even set up another credit card account, titled
"Year End Ajdustment" or something, which would also keep your
reconciliation clean. You just have to be sure to reverse the entry
though, no matter where you run it. (That would also help you remember
what the heck you were doing when you look at it a couple of years
down the road. :)

HTH,

Angie


DLC wrote:
The auditor wants to expense the charges (detail on Amex statement)
that
were incurred to 12/31/03 even though there are charges for January
2004.
These are all on one statement. He gave me an entry to adjust to the
"Credit Card" chart of accounts type. This totally wipes out my my
next
reconciliation beginning balance with this adjustment. I'm a bit
confused
also.....
 
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D

DLC

AngrieWoman said:
OK, I see. It won't change your statement balances. It will only add
an uncleared transaction to the register. You will need to make a
reversing entry on Jan 01, then those two entries will pair off the
next time you reconcile your statement, even though neither entry will
appear on your statement.
Thanks. The reversing entry will solve my problem.
Do you have your credit card set up as a sub account? Ours are set up
under 210 - credit cards. Then each card is a sub account under that.
If yours are set up that way, you could run your entries to the
parent account, which wouldn't affect the individual card activity,
but would make the "total liabilities" number correct. That's what we
do, because we have about 40 cards, and it would be too many entries
if we did it on a card-by-card basis.
Yes, we have several credit card accounts (4) as sub accounts.
I export them to Excel for other report formats to capitalize expenses by
class then generate JE's. Seems cumbersome....
We are in the property management business and HUD (paperwork!) properties
(multihousing).
Actually, you could even set up another credit card account, titled
"Year End Ajdustment" or something, which would also keep your
reconciliation clean. You just have to be sure to reverse the entry
though, no matter where you run it. (That would also help you remember
what the heck you were doing when you look at it a couple of years
down the road. :)
This may be a better idea!!!!
Have a great day!!!
 

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