QB Issue Resolution:
It’s not tedious, but a screenshare would be easier 🙂
Text is very cumbersome, in this case.
“You are correct, I was wrong, the -£ amounts for the CC show up in the Balance Sheet report.”
“So, how do we record the receipts, irrespective of the method of payment to a supplier,”
That is where we need to STOP and consider: You already paid them. That is what you keep overlooking.
You PAID already, when you used the CC. It is no different than if you took out a Loan, Deposited to the bank, and used those funds to pay these people. They ARE PAID.
If you owe taxes because of these purchases, then paying or not paying back the Borrowed Funds does not impact that fact; taxes owed on purchases are OWED because you made Purchases. Period.
“the receipts are entered into the (Pay Bill) function against the respective supplier,”
Which is Unnecessary.
“what we then do is to immediately select the (Pay Bill) and select the receipts just entered, then select (Pay Selected Bill/s). Usually we leave the payment method set at default (Cash),”
But that is another ERROR; you paid by CC. That is where the AP balance you just created should have been in the first place. You are just doing extra bookkeeping.
“this is irrespective of if the actual supplier payment was made via a CC.”
But it is RESPECTIVE and meaningful and applicable, as you just increased the balance you owe on that specific CC.
“Then, when the CC statement arrives, we decide how much we are going to pay,”
Which is another reason you should be doing this in the CC account, as that Balance Sheet activity carries a Running Balance function. You pay however much you want to, against what you owe to the Card provider. Your Suppliers are NOT waiting to be paid; you PAID EVERYTHING.
Is this still not making sense?
“then, from the supplier list select the CC Company and enter the amount we have paid off the statement.”
AND this entry should be showing, as “expense” the CC account where the balance is owed based on the payment to suppliers by using the CC. Without that running balance OWED, of course you are running NEGATIVE, because you seem to be PAYING for something you don’t owe.
“We do not record the interest paid separately as this is included in the payment made,”
That Interest Owed entry should be done using Enter Credit Card Charge, to show “we owe more due to Interest, instead of owing more due to buying Office Supplies.”
“but, I guess for strict accounting terms we should do and show this as an expense.”
“I have already explained why we record the CC & Payable elements, which is because of our mandatory Quarterly Tax reporting.”
I suspect you have this wrong. You need to confirm with your Taxing Authority how CC purchases apply to this regulation.
“Now I can see where the problem is, as we record the amounts we pay to the CC Company on a monthly basis, this is accruing as a -£ amount in the BAL Report, because there is not an amount to contra the payments made.”
“So how do we clear the -£ amounts against each of the CC?”
What about the mess in your CASH account, from the Pay Bills? I would post the balance that appears as Cash Out, to the CC account. Like this:
Enter Credit Card Charge, for each Date you “paid bills” and post Enter Credit Card Charge. On the Expenses tab, this should show the specific CASH account. This will “refill” CASH and show the balance owed was the CC accounts.
Then, for any unpaid AP bills that represent vendors already paid by CC, use Pay Bills, and use the specific CC account. Pay all outstanding AP balances that ARE CC activities, removing them from AP entirely.
Resolution for Issue 'Reconciling credit card payments' available: Yes (Solved).
Source: Intuit Community forum.
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