Credit Cards Reconciliation using Bank Feeds

[sallyg]

Just a reminder (trouble shoot adventure) for "young players" regarding reconciling Credit Cards when using Bank Feeds.

I went to see a client who, on the “reconcile accounts” window, had a negative balance as the “calculated statement balance”.

In this case, this negative balance figure matched the opening balance figure on the credit card statement.

So, it “kind-of” looked ok, EXCEPT for the fact that the figure in MYOB in the "calculated statement balance" was negative.

NOTE1 Now, this should never be the case, unless the Credit Card Company owes YOU money.

In reality, this is not usually the case.

If you are thinking Debits and Credits at this stage, you are thinking too much and too deeply.

The rule is that, when reconciling credit cards using bank feeds,  the “calculated statement figure” should be POSTIVE nearly all of the time per NOTE 1.

Bank Feeds & Credit Cards

(a method where the transactions you see on your banking software are automatically fed or transferred into your accounting system, therefore you don’t have to enter each transaction manually.)

When initially setting up MYOB to make use of bank feeds for Credit cards, the credit card bank account MUST be setup as a Liability account.

This means that every time a spend money transaction is ticked as “reconciled”, the balance (a positive figure) in the “calculated statement balance” goes up.

If it goes down, you know something is wrong and it needs to be fixed.

I hope this avoids you “tearing your hair out in frustration” as my client was before this was resolved.

Regards…   Sally Gleitman

Mob 0400 880 886

[Neil_M]

Hi @sallyg

Welcome to the MYOB Community Forum, I hope you find it a wealth of information.

Thank you for such a clear explanation about how Banks Feeds work with a credit card reconciliation, and how a credit card reconciliation should look in terms of positive and negative numbers.

I am sure a great many of our forum visitors will find this post useful

Please feel free to keep contributing and ask any questions that you have

[sallyg]

Much appreciated Neil.

Sally