would you like to easily record credit card transactions into quickbooks online
well in this episode of quickbooks online crash course 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 course if you feel the video helped you i hope you will click like
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recording 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 the expense window is what you will use to
enter the credit card charges a window to enter credit card credits is a special and separate
window that you will record the re refunds and returns from your credit card purchases and
then there is a separate window just to make payments to decrease the credit card balance
for example let's imagine on january 8th of 2022 we paid ups for a business related delivery
with the company's american express credit card and let's imagine we pay two hundred dollars and
on the slip that came from the credit card machine the transaction number is six five four three
or 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 delivery expense is two hundred dollars more because you just paid for a two hundred
dollar delivery therefore delivery expense will become one thousand seven hundred dollars
and because you now owe american express credit card two hundred dollars
american express will show up for the first time in the trial balance as two hundred dollars
let's take a look at how to record this 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 then of course 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
it is six five four three so we put in six five four three and of course the amount
200 now when 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 seventeen hundred dollars
and american express credit card showed up for the first time as two hundred dollars
now let's try a second example let's imagine on january ninth of two thousand 2022
we paid ronda's repair shop 1 200 with the business american express card for fixing the
office door and that's transaction number eight four seven two two seven four eight whatever
so again we must use the expense window for credit card charges and what will the result
be after this charge well we know that we have twelve hundred dollars in repair expense so
repair expense will show up in the trial balance for the first time as twelve hundred dollars and
because we now owe twelve hundred dollars more on our american express card american express balance
will increase to fourteen hundred dollars after we make this charge so let's take a look new expense
the date is january 9 we're paying from the american express credit card and we're paying
ronders repair shop and the reference number was eight four seven two two
seven four eight whatever and of course the reason why we're paying is because of repair expense re
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 click
and now the amount is twelve hundred dollars when we click save and close the trial balance
shows exactly the results we expected repair expense is here for twelve hundred dollars
and we now owe a total of fourteen hundred dollars to american express credit card
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 so for example let's imagine
on january 10 ups gave a fifty dollar credit for the delivery that was done back on january eighth
the prior delivery was overcharged by them the decrease in the american express card
was from transaction number 616161 and you must use the specific credit card credit window so what
will the results be if ups gives us a fifty dollar credit for a prior delivery well if the credit is
for a prior delivery overcharged that means we have less in delivery expense by fifty dollars
that means delivery expense decreases to one thousand six hundred fifty dollars
it also means that we owe american express fifty dollars less so american express
will balance will decrease to one thousand three hundred fifty dollars
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
and this window is self-explanatory this is the correct credit card account it was
ups that gave us the credit now remember the date was january 10th
but 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
fifty dollars now oh yeah we have to put now 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 one thousand three hundred fifty dollars
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
for example let's imagine on january 11 of 2022 we paid the american express card
hundred fifty dollars with an online payment from our bank account and that was transaction
number seven one seven one and again you must use the specific credit card
payment window so what will the results be after paying down the credit card by that amount well
if we pay down the credit card by 350 cash over here will in the bank will be three hundred fifty
dollars less and become five thousand fifty and of course if we now owe three hundred fifty dollars
less on the credit card then the balance of american express will go down to one thousand even
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 and everything in this window is self-explanatory
this is the credit card that we paid okay 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 okay if you wrote a check you'd click here but we didn't click save and
close and now you can see the results are exactly as what we expected we now have fifty dollars less
excuse me we now have three hundred fifty dollars less in our bank account and that's the balance we
expected and of course we now only owe american express a thousand dollars for the charges
minus the 350 dollar payment that we just made to decrease the credit card