Credit card band feeds and reconciliation after a lost card

Question

Hi,&nbsp;We are trying to solve a credit card reconcilliation issue.&nbsp; We have had a card for over 5 years and unfortunatly it was lost.&nbsp; The bank then reissued a new card which has a new number which means the bank feeds need to be reset up.&nbsp;To set up bank feeds for the new card we were forced to create a new account in our chart of accounts as it was not fesable to undo 5 years of reconcilliation so that we could combine feeds.&nbsp;The bank account statement just moved the balance from the old card onto the new card.&nbsp; So we tried to create a journal entry to move the balance from the old chart account to the new chart account, so that total credit card liability would remain the same.&nbsp;The problem is that when we recieve the new bank feed they now say that the closing balances are wrong.&nbsp;&nbsp;I can fix that by changing the opening balance of the new account, and removing the journal entry... but now the total credit card laibility is wrong.&nbsp;How can we have correct bank feeds and correct balances in the credit card accounts?&nbsp;

dunners · Answer

For anyone else who has the same credit card replacement and bankfeeds issue that we had.

This is the way that we solved this issue to get our bankfeeds and chart of accounts with the correct balances.

We needed to make a "transfer money" journal entry to move the credit card balance from the old credit card account to the new credit card account. Having an opening balance for the new card account didn't work as we needed to move the balance from the old to the new card.

We could then went into the "reconcile accounts" function and reconciled this extra transaction for both credit card accounts.

Now when we go into bankfeeds, the outstanding balances are now correct. And looking at the total credit card debt in the chart of accounts is also correct.

lrbooks61 · Answer

Basically what you have done is 100% correct

What you need to do is find the difference and make the adjustment.

What was the closing balance of the original card?

Is that the same as the opening balance of the new card?

Your journal would have completely cleared the balance of you old credit card and moved it to the new one.

So firstly check your balance sheet

Is the old credit card $0

Check the old credit card statement to make sure that you match their opening balance for the new card

If you have to change the opening balance for the new card then I suggest that there are transactions on the old card that were not processed.

If that is the case fix these in tjhe old card and adjust the balances in your original journal

All should be good then

hope this is helpful

Lisa

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Credit card band feeds and reconciliation after a lost card

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