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  #1  
Old 01-10-2005, 04:13 PM
lawncutr lawncutr is offline
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how to set up credit card account

I am setting up 2 credit cards for use in my business....I use the one Amex to pay my sales tax and the other for general expenses such as gasoline and various supplies....should I set them up as A/P or should I classify them as Credit Cards as Quickbooks pro seems to want to try to identify them.
Thanks for any imput....
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  #2  
Old 01-10-2005, 04:32 PM
suzannemead suzannemead is offline
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Set them up as credit cards. That way you can reconcile them each month to the statement the same as you do a checking account. Make the payments by writing a check posted to that account. When you reconcile it will ask you if you want to pay it all or create a bill. Cancel out of the screen if you don't want to do either.
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  #3  
Old 01-10-2005, 05:47 PM
lawncutr lawncutr is offline
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I am experimenting around a little and have created a credit card as you have sugessted but also cannot figure out which tax line to assign it...it gives me a message that "this account type is not compatible with the tax line that I am assigning it to" (when I choose parts and maintenance)...but it seems that if I assign it to the 'unassigned' tax line it seems to accept it....also when I go to the 'write checks' window this credit card does not show up....it will only show up if I make it into a vendor and not a credit card....guess I am more lost than I thought......pay using reconcil function?
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Last edited by lawncutr; 01-10-2005 at 05:58 PM.
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  #4  
Old 01-10-2005, 07:21 PM
suzannemead suzannemead is offline
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A credit card account is a liability account. Unless you are planning to transfer the numbers at year end to tax software ignore the reference to the tax line.
To make a payment on the card: When you write the check the credit card will show up as a vendor. That is correct. When you are writing the check the account you post it to (bottom part of the check screen) will be the credit card account. Credit cards are basically money lent to you to pay for things, therefore they are a liability account.
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  #5  
Old 01-10-2005, 07:44 PM
lawncutr lawncutr is offline
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Let's give it a try....for accuracy sake, jumping through all the hoops of setting up the credit card then trying to pay it is correct...but it seems much easier to pay it with a check......when trying to pay my sales tax liability with another credit card....the program always prompts me...saying that I should go through the "pay tax liability" (dropdown menu in the vendors list).
Thanks
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  #6  
Old 01-10-2005, 10:21 PM
suzannemead suzannemead is offline
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Paying your sales tax with a check is easier. It is important that you pay your sales tax through the Pay Sales Tax screen. If you really want to use a credit card for payment there is a 2-step workaround. Create a "bank" type of account called "Clearing Account". Pay your sales tax using this account. It will show up as a bank account on your Pay Sales Tax screen. You will have a minus balance in the account after the payment. Then go to the "Enter Credit Card Charges" screen for your credit card and enter the same amount as your sales tax & post it to the clearing account. This will put the charge on the credit card and bring the balance in the clearing account to zero.
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  #7  
Old 01-11-2005, 09:36 AM
kenilworth kenilworth is offline
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credit card accounts

I've never understood the difference between a credit card account and a bill. When my Amex bill comes in, I enter the line items, and make sure the total matches the bill total. Then at the end of the month I use "Pay bills", then write a cheque as with any other bill. What are the advantages of creating a credit card account?
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  #8  
Old 01-11-2005, 11:06 AM
Joey Joey is offline
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When you set up a credit card liability type account, there is a screen under Banking that says Enter Credit Card Charges. If you use that screen to enter the charges, there is a place to enter the vendor that you made the purchase from and the purchase dates for the charges. Also, if you return something you've purchased, you click the Credit area and it reduces your amount due. You can reconcile the CC account back to your monthly statement.
When you just record the charges on the check screen or the bill, as you are doing, they are all lumped together and the payee is always AMEX or whatever the CC is that you are recording. If you happen to be paying a Vendor that will need a 1099, it will not be recorded either because the payee for everything is AMEX. The Credit Card account is designed to be used to solve those problems. It's really easy to use.
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  #9  
Old 01-11-2005, 01:20 PM
kenilworth kenilworth is offline
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why use credit card account

Thanks, Joey. That's very clear. Since I'm in Toronto, the 1099 is not an issue, but I like the idea of a place for the vendor name. At the moment, I just put that info in the Item description line on the Enter Bills screen, but it's hard to find the vendor if I need it later. We don't use credit cards that much, so it's not a big deal, but I think I may switch.
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  #10  
Old 06-01-2012, 12:16 PM
jon33lewis jon33lewis is offline
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Opening Balance on Credit Card Account

I'm trying to figure out how to set up the opening balance on a credit card account. I think the opening balance should be the available revolving credit, correct?
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  #11  
Old 06-02-2012, 12:42 AM
Joe Williams Joe Williams is offline
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NO, the opening balance is the balance owed on that date. The Credit Card account just keeps track of your purchases and payments for that card.
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