On this lesson, we’ll present you find out how to categorize downloaded bank card transactions in QuickBooks On-line. Bank card transactions imported into QuickBooks On-line should be matched to an present transaction, utilized to an unpaid invoice, or categorized as an expense.
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This lesson is certainly one of our Free QuickBooks Tutorials. You possibly can both watch the video under, learn by way of the step-by-step directions, or do each. The video was made with a barely older model of QuickBooks On-line. Whereas the method of managing downloaded bank card transactions is actually the identical, the structure of the screens is barely completely different. The step-by-step directions are from essentially the most present model of QuickBooks On-line.
Why It’s Necessary to Handle Downloaded Credit score Card Transactions in QuickBooks On-line
After you import credit card transactions into QuickBooks On-line, you need to inform QuickBooks On-line find out how to classify the transactions. Imported bank card transactions don’t switch into your account register robotically however, somewhat, seem as transactions awaiting overview within the Banking Heart. Utilizing the Banking Heart, you need to do one of many following for every bank card transaction:
- Match the transaction to an present QuickBooks transaction
- Apply the transaction towards an unpaid invoice in QuickBooks
- Create a brand new expense transaction and supply an expense class
Don’t exclude transactions: Whereas the choice exists in QuickBooks, you shouldn’t exclude transactions which can be imported out of your bank card account. Each transaction within the bank card account, together with private transactions of the proprietor, should be recorded in QuickBooks On-line for the bank card account to reconcile and your books to be full. See my bookkeeping tips for recommendation on find out how to deal with private transactions of the proprietor.
How Do I Handle Downloaded Credit score Card Transactions within the Banking Heart?
Listed here are 4 steps to handle your downloaded bank card transactions in QuickBooks On-line:
- Navigate to the Banking Heart.
- Overview downloaded transactions.
- Examine imported transactions to present QuickBooks On-line transactions.
- Create new bank card transactions for transactions not already in QuickBooks.
1. Navigate to the Banking Heart
Navigate to the Banking Heart by hovering over Transactions within the left menu bar after which clicking on Banking:
2. Overview Downloaded Transactions
The highest of the Banking Heart shows every checking and bank card account that you’ve linked to your QuickBooks account. For those who haven’t linked your bank card account but, accomplish that by following the directions in How to Import Credit Card Transactions. As soon as your bank card account is linked, click on on the steadiness abstract on the prime of the Banking Heart:
The abstract field in your bank card account shows the account steadiness reported by your financial institution in addition to the steadiness out of your QuickBooks account register. Transactions which can be downloaded into QuickBooks are mirrored already within the financial institution steadiness. Nevertheless, downloaded transactions don’t have an effect on your QuickBooks steadiness till you overview and settle for them.
Don’t neglect to reconcile: The financial institution steadiness and QuickBooks steadiness ought to be the identical as soon as all of your transactions are reviewed. Nevertheless, if there’s a distinction, you’ll be capable to discover it while you reconcile your credit card account on the finish of the month.
The orange quantity within the bottom-right nook of the account abstract field is the variety of transactions downloaded out of your checking account that haven’t but been reviewed and accepted, matched, or excluded. A listing of transactions to overview will seem within the decrease half of the Banking Heart below the For overview tab:
Superior settings: You possibly can decide which columns will seem below the overview tab by clicking on the settings cogwheel straight above the final column.
3. Examine Downloaded Transactions to Present QuickBooks Transactions
It’s necessary to match imported transactions to present transactions in the event that they exist. In any other case, the transaction you settle for will likely be a reproduction and trigger your bank card steadiness to be incorrect. QuickBooks searches robotically for present transactions that match the imported transaction. If a match is discovered, the phrase “match” will seem within the motion column on the far proper. Clicking on Match will join the transactions instantly, so I counsel refraining from clicking on it till you overview the match.
Click on wherever within the transaction to overview the steered match, besides on the steered motion within the far-right column:
QuickBooks will counsel each matches to present transactions and matches to unpaid payments.
Matching Present Transactions
The Metropolis of Coralville instance above is a match discovered with an present transaction. This match occurred as a result of the bank card cost to Coralville was entered manually into QuickBooks on the time it was made. By clicking the inexperienced Match button, the bank card transaction will transfer from the For overview tab to the Categorized tab, however no transaction will likely be created within the QuickBooks register for the reason that transaction already exists.
Matching Unpaid Payments
QuickBooks will scan your record of unpaid bills you’ve entered previously to find out if the downloaded bank card transaction is probably going a invoice fee. Within the instance under, Paul’s Plumbing entered a invoice from Mini Storage for $156.00 on September 1, 2020. They paid the invoice with a bank card on September 2, 2020, however didn’t enter the fee in QuickBooks:
While you click on Affirm, QuickBooks will create a brand new transaction in your QuickBooks register, recording the bank card cost in addition to offsetting the unpaid invoice or accounts payable (A/P).
Discover Different Matches
For those who made a partial fee of an impressive invoice, QuickBooks is not going to counsel a match robotically for the reason that quantity of the cost is completely different from the invoice. Click on Discover different matches within the transaction element to offer an inventory of excellent payments and point out which invoice to use the bank card fee.
You may also have to make use of the Discover different matches button for matching transactions the place the quantities are, in error, barely completely different. You’ll have to appropriate the QuickBooks transaction quantity to match the precise bank card cost earlier than you possibly can match the transactions.
4. Create New Credit score Card Transactions
If the bank card transaction has not already been recorded manually in QuickBooks, and it isn’t a fee of an impressive invoice, you’ll have to create a brand new transaction. To overview the transaction steered by QuickBooks, click on wherever on the transaction (besides within the Motion column):
Within the above instance, QuickBooks suggests the cost to Costco Gasoline be categorized as “Car/Truck Expense: Gas.” I extremely advocate you full all fields for the transaction as when you have been recording the transaction manually. The Vendor area is necessary, so the transaction seems with that vendor’s exercise. It’s particularly necessary to finish the Billable and Buyer/undertaking fields when you anticipate to invoice a buyer for this expense. In any other case, the fee received’t be accessible so as to add to an bill.
Create a Rule
If including a typical transaction, it’s best to create a rule so QuickBooks will prefill all the transaction fields robotically as an alternative of simply the Class and Memo. Beneath is the Costco transaction with the Vendor, Location, and Class manually enter:
Click on on Create a rule on the backside of the transaction element to create a rule based mostly on the data you entered on this transaction:
You should present a reputation for this rule within the first area. All the different fields have been populated robotically based mostly on the Costco transaction for which we supplied element. After saving this rule, QuickBooks will robotically document all fees described as “Costco Gas” to Automobile/Gasoline Expense with the Payee, Class, and Location fields accomplished. This generally is a enormous timesaver however arrange your guidelines rigorously to keep away from errors.
One other lesson is full. Now you can handle your downloaded bank card transactions by matching them to present transactions, making use of them towards unpaid payments, or creating new transactions. You additionally realized to create a rule so QuickBooks can present better element when suggesting new transactions. The following lesson in our QuickBooks On-line Coaching Course is How to Enter a Credit Card Refund while you obtain refunds from distributors.