How To Enter Credit Card Payments In QuickBooks Pro
Entering credit card payments into QuickBooks doesn’t have to be confusing. If you’re not sure how to enter credit card payments or partial payments, don’t worry.
In this post, we’ll cover everything you need to know about entering credit card payments in QuickBooks Pro in 10 simple steps.
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Reconcile Your Credit Card
You may not have known this, but before you enter credit card payments, you need to reconcile your credit card. This safeguards against any errors and makes entering payments easier (just watch and see).
To begin, go to Banking>Reconcile Credit Card. Be sure to have your credit card statement handy.
Step 1: Select Your Credit Card
Select the credit card account you wish to reconcile.
Step 2: Choose Statement Date
Use the drop-down calendar to enter the statement date on your credit card statement.
Step 3: Enter Your Ending Balance
Enter the ending balance exactly as it appears on your credit card statement.
Step 4: Enter Any Finance Charges
Use the “Finance Charge” box to enter any finance fees (or interest fees). Enter the date the finance fee was charged and select an account like “Interest Expense” to categorize your finance charge.
Then click the blue “Continue” button.
Step 5: Reconcile Your Account
Once you click “Continue,” you’ll be taken to a bank reconciliation screen that looks something like this. The charges and cash advances associated with your credit card will appear on the left, while your payments and credits will appear on the right.
Go through your credit card statement line by line. For each individual transaction on your credit card statement, find the matching transaction in QuickBooks and click it. Continue until all the transactions on your credit card statement are selected.
Once all of the transactions are selected, go to the bottom right-hand side of your QuickBooks screen. The difference should be zero. If not, something’s gone wrong and you’ll need to pinpoint the mistake (you could be missing a transaction, have been charged twice by the credit card company, or have entered the wrong ending balance).
Step 6: Save
When the difference is 0.00, your credit card account is balanced! Now click the blue “Reconcile Now” button.
Step 7: Write A Check
QuickBooks will take you to this screen:
The “Write a check for payment now” option makes entering a credit card payment easy. You can select that option right away and click “OK,” or you can go in and write a check at a later time.
After you click “OK,” you may receive this popup notification about your reconciliation report. You can view or print a summary reconciliation report or a more detailed reconciliation report.
Enter A Credit Card Payment
You can either enter a credit card payment by following the reconciliation step above and clicking the “Write a check for payment now” option at the end, or you can go straight to the “Write Checks” icon on the Home page.
Step 1: Select Payment Account
Select the account you will be using to pay for your credit card charges (not the credit card account you are paying).
Step 2: Select Credit Card Account
Now, skip down to where it says “Account.” Here is where you will select the actual credit card account you are paying. If you come straight from the reconciliation screen, this information will be automatically filled in.
Step 3: Choose Your Vendor
Go back to the top and use the drop-down menu to select the vendor you are making the payment to.
Step 4: Enter Check Number
Enter a check number (or adjust the existing check number if needed).
Step 5: Enter Date
Use the drop-down calendar to make sure the proper payment date is selected.
Step 6: Enter Payment Amount
If you came straight from the reconciliation screen, QuickBooks will automatically fill in the total outstanding balance on your card. However, you may want to adjust this total or make a partial payment. If that’s the case, enter the custom payment amount.
Step 7: Write a Memo
You can include a menu to describe this payment if you’d like.
Step 8: Add Additional Information
At this time, verify that the account name and amount appear correctly and add any additional information (such as another memo).
Step 9: Save Your Payment
Once your payment looks correct, click the “Save & Close” button. Hit the “Save & New” button if you’re planning on writing more checks.
Step 10: Check Your Payment
Lastly, go to Lists>Chart of Accounts and select your credit card. You’ll see a screen with all of the recorded charges and payments. Double check that your payment has been properly recorded and that the outstanding balance looks right.
Once you’ve done this, you’ve successfully recorded your credit card payments in QuickBooks! For more credit card help, check out the other posts in our QuickBooks Pro 101 Series.
For troubleshooting issues, check out the QuickBooks Community or call QuickBooks directly. Don’t forget to check out the rest of our QuickBooks Desktop Pro 101 Series to learn how to reconcile a bank account, enter credit card charges, enter a bill, handle merchant fees, and more.
Overwhelmed by QuickBooks Pro? Maybe it’s time to switch to QuickBooks Online. QBO is easy to use, cloud-based, and affordable. Best of all, you can easily import your QuickBooks Desktop data into QuickBooks Online.
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