do you need to enter credit card related transactions well stick around because in this
video we're going to demonstrate how to enter each of the different types of credit card transactions
if you have any questions about this topic you can leave them in the comment 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
and don't forget to subscribe to get updates on new videos that come out all the time in our first
example we're going to put in these two charges and when we put them into quickbooks online we're
going to use the expense window to record these charges let's focus first on May 10th charge
the repair from wrecks repair shop for $1,000 we charged it with the Capital One credit card and
this was the number on the slip well it's very simple we go to the expenses tab click expenses
now when you click new transaction the new expense is what you choose and when the expense
window comes up you come from the payment account pulldown and you actually choose the credit card
that you're charging the expense to in this case the vendor who gets the money is rex repair shop
let's just double check that yup $1000 transaction 1 1 2 2 3 3 4 4 whatever okay so this is rex
repair shop and we know that the payment date was May 10th and in our little story we're doing
May 10th of 2017 now because we're paying Rex it means the service that we're paying for is repair
Spence so the money is coming from the Capital One credit card to paying repair expense and the
amount is $1,000 okay that means when we finish repair expense goes up by a thousand and the
Capital One credit card will show up for the first time in the trial balance as a balance of $1,000
save and close let's go back to the reports take a look at the trial balance and you can see for the
very first time Capital One credit card now has a balance of $1,000 you should also notice that in
repair expense if you double click repair expense and scroll to the bottom you can see that this was
recorded this credit card charge was recorded as an expense to rex repair shop and you can
see the payment account or the split was not the bank account and not petty cash it was paid from
Capital One credit card the second transaction May 11th charged supplies from Staples 2000 with
this big long transaction number whatever it is so we go like this expenses then of course new
transaction the type is expense if it's a credit card charge and this time we're paying Staples and
we are paying from the Capital One credit card now the day that we charge this to Staples is May 11th
of 2017 and the expense or the asset in this case that we're buying is supplies I guess you could
put it as supplies expense or supplies depending on how the company runs but the amount is 2,000
and what I forgot to put in the reference number field is the big long crazy number that's usually
on the credit card nine 9 eight 8 seven 7 six you should probably put that number in 99 eight eight
seven 7:6 there you go and this is how you fill out a credit card charge in the expense window
okay now save and close and now when we look at the reports and we look at the trial balance you
can see Capital One credit card has now a balance up to three thousand that includes both of the
charges both to recs and to staples and of course supplies expense if you double click and go down
it will show this expense this is the credit card charge that just increased your supplies expense
that you charged from your Capital One credit card now let's enter a credit card credit and a
credit card payment and remember for each of these types of transactions you use the specific windows
provided by quickbooks online so for example make 12 Rech save us $100 credit back on the Capital
One credit card for the May 10th repair well you may notice that up here you have a specific window
specifically under the vendor pulldown for credit card credit open it up and just follow the prompts
okay the payee is Rex repair because they are the ones giving the credit they're the ones we charged
before here we have the Capital One credit card as the account where the money is going back to you
have to put the date that Rex gave us the credit and the exact same expense on the charge is the
exact same expense on the credit now the credit amount was for $100 and of course this usually
some long weird blathering number that goes along with the transaction for the transaction number
so of course you would type that in and then basically that's it all you would have to click
at this point is in the bottom right you might not be able to see it but we filled it out properly
click Save and close and now when we go back to the trial balance you can see that the credit
card balance has decreased by the hundred dollars that we just got the credit for and the repair
expense also decreased because we had $100 less of repair expense because we just got a credit
for the charge for repair now what about this May 13th Pei Capital One $200 with cheque number 900
just to decrease the credit card balance now we know if we pay 900 this balance goes down to 2,000
even and this becomes 30000 something because the bank balance is also going to decrease in the plus
sign menu for new transaction there is now in QuickBooks Online a specific window to pay down
the credit card you choose the credit card that you're paying down you put the amount in this
case 900 and of course the date of the payment was May 13th of 2017 and the bank account is
cash and bank I made the payment with a check and the check number is 900 you cannot make a
mistake in this window simply fill out the form the way it asks and you are unlikely to make one
of the common mistakes discussed in the previous video click Save and close and now you can see
the credit card balance properly went down to 2,000 and the bank account changed accordingly
you