The process of making payments to your credit cards and then reconciling the credit card accounts involves various steps. Click to watch this video or read the below steps.
1. Creating a Credit Card Vendor
First step is to create a vendor who is tied to the credit card. To do so:
- Open the Vendors screen from the main menu > Contacts.
- Click Create New and add a new vendor record, say Chase Credit Card.
- Save the information. Check the Core Help for details.
2. Cutting a Check to Pay the Credit Card
In order to properly reconcile the credit card account, you need to record a payment that will balance the credit card charges:
- Open the Checks screen from the main menu > Accounting.
- Click Create New and select the bank account from where the money will be withdrawn.
- Select the newly created credit card vendor 'Chase Credit Card' as the Payee.
- On the Accounts grid, select Chase Credit Card as the Account.
- Cut a check for the balance to pay, say $1040 (Amount) and save the transaction.
3. Reconciling the Credit Card Account
Follow these final steps to reconcile the credit card transactions:
- Open the Chart of Accounts screen from the main menu > Accounting.
- Select your credit card account, say Chase Credit Card, and then click the row action menu to select Reconcile.
- On the Reconcile Accounts dialog, enter your statement balance as well as any finance charge, say $0, and click Continue.
- Select any Checks/Payments to be cleared by checking the Cleared box on the far right.
- Select the Deposits/Credits to be cleared, by checking the Cleared box on the far right, in this case the payment applied for $1040.
- Click Reconcile Now.