Credit Card Bank Feed

CalumYBG
Contributing Cover User
6 Posts
Contributing Cover User
Australia
Contributing Cover User

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Credit Card Bank Feed

Hi there,

 

We currently have our credit card account setup as an asset. We are trying to setup bank feeds for our credit cards, and see this can only be linked to a liability account.

When I next reconcile the asset credit card bank account, is it okay to create a liability credit card account and link the bank feed to this? Or would there be any issues with this?

 

Thank you,

Calum

1 REPLY 1
Tracey_H
MYOB Moderator
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MYOB Moderator
MYOB Moderator

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Re: Credit Card Bank Feed

Hi @CalumYBG 

 

Thanks for your post. As a credit card is a business liability (you owe money) it would typically be set up as a Liability account with the Account Type: Credit Card. 

 

From an AccountRight perspective you can do a final reconciliation of the asset account, create a new liability account and link bank feeds to that new liability account. If you have any transactions that do not get reconciled in the asset account when you have done that final reconciliation, I would change the Pay from account to the new liability account. This means that you'll be able to reconcile them in new account instead of leaving them as outstanding in the old account.

 

However, I would check with your accountant as your previous financial reporting will be incorrect, ie a liability showing as an asset. You may need to record a journal to correct the asset and liability accounts.

 

Please let me know if you need further help.

 

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

Cheers,
Tracey
Previously @bungy15

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