How to Enter Credit Card Transactions in QuickBooks 2015

By Stephen L. Nelson

If you choose the Banking→Use Register command and select a credit card account, QuickBooks displays the Credit Card register. The Credit Card register works like the regular register window that you use for a checking account. You enter transactions in the rows of the register. When you record a charge, QuickBooks updates the credit card balance and the remaining credit limit.

image0.jpg

Recording a credit card charge

Recording a credit card charge is similar to recording a check or bank account withdrawal. For the sake of illustration, suppose that you charged $50.00 worth of burritos and margaritas to your favorite Mexican restaurant, La Cantina. Here’s how you record this charge:

  1. Choose Banking→Enter Credit Card Charges.

    The Enter Credit Card Charges window appears.

    image1.jpg

  2. From the Credit Card drop-down list, select the credit card that you charged the expense against.

    Click the down arrow next to the Credit Card list and then select a card from the drop-down list.

  3. In the Purchased From field, record the name of the business that you paid with a credit card.

    Move the cursor to the Purchased From line and click the down arrow. You see a list of names. Choose one from the list.

    If you’ve never dined at this fine establishment before, choose Add New. Then add the business name.

  4. Select the appropriate option button to indicate whether the transaction is a purchase or a credit.

    Select the Purchase/Charge option button if you want to record a purchase (which is what you do most of the time and what this example shows you). Select the Refund/Credit option button if you want to record a credit on your account (if you returned something, for example).

  5. Enter the charge date in the Date field.

    Move the cursor to the Date line, and type the date, using the MM/DD/YYYY format. For example, type either 06302015 or 6/30/15 for June 30, 2015. If you’re entering this charge two or three days after the fact, enter the date when the charge was made. Using that date makes reconciling your records with your credit card company’s records easier when you get your monthly statement.

  6. Type the charge amount in the Amount field.

    Move the cursor to the Amount line and enter the total charge amount. Note: Don’t type a dollar sign but do type the period to indicate the decimal place.

  7. (Optional) Enter a memo description in the Memo text box.

    Move the cursor to the Memo text box and type the specific reason that you’re charging the item. In this case, you could type Important Business Meeting or something like that.

    This memo description box is a good place to document the business purpose for a charge, which is a tax law requirement if you’re recording a travel, meal, or entertainment business credit card charge.

  8. Fill in the Expenses tab.

    You use the Expenses tab to record business expenses.

    Move to the Account column of the Expenses tab, click the down arrow, and choose an Expense account from the list (most likely, Travel & Ent:Meals if this were a business lunch). If you enter a name here that QuickBooks doesn’t already know, it asks you to set up an expense account.

    QuickBooks automatically fills in the Amount column when you enter a sum in the Amount field. Type something in the Memo column and assign this expense to a Customer:Job and Class if you want to. You need to turn on class tracking if you want to assign the expense to a class.

  9. Fill in the Items tab.

    Because this charge is for a meal at a restaurant, you don’t itemize the charge. However, if you were charging inventory items such as lumber, paper supplies, and so on, you’d fill in the Items tab.

    If you have a purchase order (PO) on file with the vendor that you entered in the Purchased From line, QuickBooks tells you so. Click the Select PO button to see a list of your outstanding purchase orders with the vendor.

  10. Record the charge by clicking the Save & New button or the Save & Close button.

    The charge is recorded in the Credit Card register.

    image2.jpg

Changing charges that you’ve already entered

Perhaps you record a credit card charge and then realize that you recorded it incorrectly. Or perhaps you shouldn’t have recorded it at all because you didn’t pay for the business lunch.

You have to go into the Credit Card register and either edit or delete the charge by following these steps:

  1. Choose Lists→Chart of Accounts.

    You see the Chart of Accounts window.

  2. Double-click the credit card account where the faulty charge is.

    Like magic, the Credit Card register appears onscreen.

  3. Select the credit card transaction that you want to delete or change.

    That’s easy. Just move the cursor to the transaction.

  4. Void, delete, or edit the transaction:

    • To void the credit card transaction, choose Edit→Void Credit Card Charge and then click OK.

    • To delete the transaction, choose Edit→Delete Credit Card Charge. QuickBooks displays a message box that asks whether you really want to delete the transaction. Click OK.

    • To edit the transaction, click the Edit Transaction button at the top of the window. You return to the Enter Credit Card Charges window. Make your changes there and then click Save & New or Save & Close. You also can make changes inside the Credit Card register and then click Record when you’re done.