Reconcile Company Credit Card

Question

Hi Everyone.

Having allot of issues like this of late. 
Our director paid the work credit card by mistake from his personal account $2000. This is fine.

I have created a receive money, Deposit to Account - 2-0921 Credit Card $2000

Line 1 Account No. 2-0921 Credit Card. $2000

I then go to reconcile the bank account and the transaction is there as a deposit and a withdrawal.

If I tick both, my credit card reconcillation is then negative by the amount.

What have I missed?

Thanks

Shella_A · Answer

Hi @additions

Thank you for your post. Typically credit cards are set up as liability accounts with the account type being Credit Card. I assume it wasn't listed as having the account type of credit card. To remedy that one and have it appear in the lists, go to Accounts>>Accounts lists>>Choose the desired account and update the Account Type field to be Credit Card. Checking what you have process it should be two accounts you'll be needing to record to reconcile, one account at the top and one account below. On the account at the top, it must be the ledger for the bank or credit card which received the money, while at the other account below must be an income account.

You may have a look on this Help Article: Received Money that has detailed information and instructions to assist with this. This will help you reconciled those transactions successfully and avoid getting negative amount.

If you need further help, don't hesitate to start a new post and we'll be happy to assist.

If my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.

Cheers,

Shella_A

Julie_A_C · Answer

Hi @additions

You are fine on the receive money to the credit card, but is a loan from the Director and should be allocated to either a liability or asset account that you would have called that.

Whenever the Director does any personal spending from either the cheque account or credit card these would also be allocated there.

If you dont have one now, i would set it up and do it as a credit card account type.

That way whenever they buy anything in cash or accidentally use their personal card to pay for something you would do a spend money on that account, as this is money that is owed back to them.