Credit Card Duplicate Payments in QuickBooks
Credit card duplicate payments that are just hanging and never clearing is a common trouble point in QuickBooks Online (QBO). Yes, I see this a lot! It is one of the evils of using the bank feed and hurrying the download of the transactions. QuickBooks Online (QBO) bank feed is a useful tool if used properly. But, heck, we are busy! I need to work and not be bothered by this stuff. So we just click, click, click.....
Credit Card Duplicate Payments: How do you find them?
This is how most of my customers first notice them. They download from the bank feed. They think, "It came from the bank so it has to be right".....WRONG! They don't reconcile because they are duplicates from the download from the bank feed on the bank's side and from the download in the bank feed on the credit card side. Then the CPA gets into the records and notices the duplication. Or maybe you are reconciling and you have a bunch of hanging transactions that never clear. Why? Because they are entered twice. By default, when you first start using the bank feeds, the system sees these credit card payments and suggests they go into uncategorized asset. So you click it and it gets entered to that generic, unuseful account.
So what is an uncategorized asset???
To your CPA, it is nothing. It belongs coded as something other than uncategorized. Assets can be furniture and fixtures, buildings, any large, expensive purchase of a "thing" you need for your business. An uncategorized asset means not categorized, not classified, not anything. If you make a payment to your credit card, the transaction simply is a transaction from Bank A (in my video Bank of America) to Bank B (in my video the credit card supplier, Chase Bank).
Credit card payments are simply that....
Simply click + bank transfer. Bank of America to Chase bank. Or they can be entered as a check. Bank of America pays Chase bank. To see another post regarding credit card payments with QBO invoices, click here.
Last piece of advice: Do this slowly...
The perfect way to enter this is to wait. Wait till you see this hit your bank (the payment account) side. Then download it as a transfer from Bank A to Bank B. Go to the credit card bank feed screen and match that transaction. You will avoid the messiness of fixing a transaction that was reconciled, needs to be deleted and the replacement transaction reconciled in its place. All of which is demonstrated in the video below.
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.