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How to Enter Multi-Line Monthly Credit Card Interest Finance Charges in QuickBooks

by on August 2, 2013

Banking > “Enter Credit Card Charges”

QuickBooks Premier 2012

Currently, in the QuickBooks Premier credit card reconcile window you can only enter in one combined interest charge. This is fine if you have not done any balance transfers to or cash advances from your business credit card. If you have done more than just purchases, you will see multiple line items on your credit card statement. Usually they are “Purchases”, “Cash Advances”, and “Balance Transfer/Checks” and in that order. What I do, and please confirm with your accountant, is enter in the interest charges through the “Enter Credit Card Charges” window. I like to see at the end of the month/year in reports just what my credit card issuing bank is charging me per each balance.

In the Enter Credit Card Charges window:

Credit Card: Is the credit card that is charging you interest. For example title: “Visa (0000)” Replace the zeros with the last four digits or your credit card.

Purchased From: You need to set up a “Vendor” account for this Credit Card. Yes they are a bank but also a vendor. For example title: “[Bank Name] Visa (0000)”

Expenses: Account: I suggest that you set up under Expenses > “CC Finance Charge” something that differentiates between the three mentioned: “Purchases”, “Cash Advances”, and “Balance Transfer/Checks”. For example: “CC Finance Charge: Purchases”, “CC Finance Charge: Cash Advances”, “CC Finance Charge: Balance Transfer/Checks”

This way you will have your finance charges broken out for detailed reporting.

Note: If your “Balance Transfer” annual/daily interest rate is not the same or lower than your “Purchases” annual/daily interest rate, get a different credit card.

TenForTek - Web, Data and Business Support Services

TenForTek | Web, Data and Business Support Services

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