how do you post cash payments onto credit card

If you are talking about a payment against the company's business credit card balance, if cash or funds were withdrawn from the business checking account for this purpose, you can record the transaction in the checking account register.

Open the checking account register, enter the date the funds were withdrawn for the payment.  In the Payee field, enter the credit card company (which is set up as a Vendor).  Enter the amount of the payment in the Payment field.  In the Account field, select the credit card account which you set up in your Chart of Accounts for the business credit card.  Click Record.

If you are writing a check to pay the credit card, and you didn't enter a Bill for the credit card, then create the check using the Write Check function, and in the Account field, specify the credit card account.

If you entered a Bill for the credit card, go to Pay Bills, select the bill, enter the amount you are paying if you aren't paying the entire amount of the bill, and in the Account field, specify the checking account.

Andrea

Andrea, thanks for the tip , I would like to ask you then if I use the categroy of Checking acct, for the card payment, then on my register that payment will still show open does this mean that i would have to undo the reconciliation for that month to include this payment?? I want to make sure I understand if this is the procedure.

I'm not sure which register you are refering to in your second question--the bank account register or the credit card register.

In either case, it would depend on if that payment showed up on the statement you are reconciling.  So, for example, say you made a payment on your credit card on 10/29/09.  But your bank statement for the month ending 10/31/09 doesn't reflect the check as having cleared the bank as of 10/31/09.  Then you would not include that payment in your reconciliation, since the payment will most likely show up on the November bank statement.  It would be the same for your credit card account if you are reconciling it.  If the payment isn't listed on the credit card statement for the month you are reconciling, then you would leave the payment as uncleared, since the payment will show up on the next month's statement.

Does this help you?

Andrea

Hi Andrea thanks for the help, In regards to Cash Pmt on credit card, the reason I wont find it in the bank statement, is because it was a money order purchased towards a deposit that was being made at the bank , so in this case, I cant trace the money were it came from, although the payment is showing on the credit card, so what should I do in this case? Thanks for your help.

Thank you Andrea, someone answered any cash payment to a credit card (money order can be considered a cash pmt?)  should be posted back to its original transaction. My company has several sources of income can it be posted back to one of these sources.

The problem is that I dont know from what deposit it was taken of course I am thinking that I can take any of them and make the figures match accordingly around the time the payment was done to the credit card company. I am new to all of this and I have been balancing everything pretty good only that now this credit card pmt is throwing me off, cant seem to understand it, when i dowloaded the transactions from credit card into QB i thought that the payment was made frm the business checking acct (by the way we are talking of a trans. took place back in August) so whe i posted it of course I had to undo bank reconciliations to enter this and thats when I realized that it had not been made from the bank it doesnt appear in the bank statement. So I asked and thats when i found out it was made from a deposit. Not right to do i guess not a good way to track things down.

I guess the confusion for me is around the word "deposit" and how that deposit was posted in your QuickBooks.  The deposit would have had to go into some bank account, as far as I know.  If you recorded the deposit for the net amount (the original deposit less the cash back for the purchase of the cashiers check) from the bank's deposit receipt, then of course you wouldn't have noticed the difference because the amount you posted in QuickBooks would have matched the amount showing on the bank statement.  By posting this way, your income would have been understated.

As an example, suppose you were given the bank's deposit receipt to post in your QuickBooks.  The deposit showing on the receipt was for $1,000.  So, you may have posted this as a deposit in QuickBooks with $1,000 going to income.  But in actuality, the income should have been $1,500. because that was the amount of the deposit that was taken to the bank, and then $500 of that deposit was used to purchase the cashier's check.

If your August bank reconciliation is now done, and the income in question doesn't impact your accounts receivable, then what you can do is make a journal entry debiting the bank account for the amount of the cash-back and crediting the appropriate income account to make the original deposit what it should have been.  Then you can make a second journal entry debiting the credit card account and crediting the bank account for the purchase of the cashier's check.  When you do your next reconciliation, you will check off both journal entries.  You may want to check with your accountant before you make these journal entries to make sure this will be ok to do.

Andrea