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ZevoAdmin's avatar
ZevoAdmin
Experienced User
4 years ago
Solved

Credit Card Reconciliation

Hi,

 

I have two questions regarding credit card reconciliation similar to the one in this thread: Set up/Reconcile Credit Card that has not been pre... - Page 2 - MYOB Community

 

1. What opening balance should I enter for the credit card? We have been using it since 2005 however, created credit card liability account in MYOB only in November 2020 and we will be reconciling it from then. Previously, the amounts transferred to pay off the credit card, were entered as spend money transaction & allocated to purchases account. The card statements come on 20th of each month, therefore I can't find the balance for the 1st November.

 

2. Since the statements come on 20th, should I reconcile it month by month (1st - 31st) or rather 20th - 19th according to the statements? If it would be 20th -19th how do i do the first month (November)? We reconcile the main account from 1st till 31st (or 30th) of each month therefore, I cannot go back to October to change the transactions for the amounts transferred to credit card between 20th & 31st October.

 

Thank you!

  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi ZevoAdmin 

     

    The opening balance of a credit card would be the opening balance of the account as of the date you first wish to use the company file. For example, if you wish to start using the file as of 1st January you would need to work out the balance of that card as of that date and enter that as the opening balances as of that date.

     

    In terms of the reconciliation, typically users would reconcile against the credit card statement so it is more common to do it based on the statement period rather than a calendar schedule. In theory, you could do it based on a calendar schedule you would just to reconcile against something i.e. internet banking or the individual hard copy transactions.

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  • Steven_M's avatar
    Steven_M
    Former Staff
    4 years ago

    Hi ZevoAdmin 

     

    The opening balance of a credit card would be the opening balance of the account as of the date you first wish to use the company file. For example, if you wish to start using the file as of 1st January you would need to work out the balance of that card as of that date and enter that as the opening balances as of that date.

     

    In terms of the reconciliation, typically users would reconcile against the credit card statement so it is more common to do it based on the statement period rather than a calendar schedule. In theory, you could do it based on a calendar schedule you would just to reconcile against something i.e. internet banking or the individual hard copy transactions.