Credit Card : Delay in posting the payment

My company has a credit card. And I have setup the quickbooks to handle this as a seperate account of type "Credit card". But the problem is that in reality, there is a delay of 2 days between the day I take the money from my main bank account and before it is posted in the credit card as a payment. Can somebody please show me how I should handle this situation. If I do a "payment" from the bank account ( in quickbooks ), it will show up immediately in teh credit card account.

Do I need to setup some kind of buffer account ?

Thanks

--sony

Reply to
sony.antony
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Yes. It is called un-deposited funds and it should already exist.

When you receive the credit card payment, route it to un-deposited funds. When you bank says the settlement has posted, make a deposit and pull it out of un-deposited funds.

Reply to
Golden California Girls

I'm not sure why the date the payment posts is of any concern to your bookkeeping. You don't change the dates on checks you wrote to match the date the person actually received or deposited the check so why would a credit card payment be any different? Once you write that check the money is as good as gone from your bank account and should be recorded as such.

Reply to
scfundogs

You read it wrong - this isn't on the customer side - it is on the company side - liabilities.

N Owen To reply, please change "ONE" to numeral

Reply to
N Owen

You girls misread the question. It's about PAYING a Credit Card liability, not receiving payment by credit card. I think Tara has the right answer.

However, if Sony wishes - you COULD create a "buffer" account. I suggest another Credit Card type account called something like "Payments to Credit Card", a sub-account of the Credit Card account. Record your payments to this account on the date of the check, then Transfer Funds (Banking menu) from that account to the Credit Card on the day the payment is applied. But is it really worth the effort?

Reply to
!-!

No you do not. There is nothing for you to do. There is no problem.

Reply to
Allan Martin

Thank you very much for taking time to reply: Yes it is about paying the monthly statements to my company credit card.

-Every entry I have in the credit card account is from the credit card statement. Including the monthly payments I make.

-Every entry I have in the Bank account ( from which I pay the monthly credit card statement ), is from the bank statement ( which is actually electronically downloaded once in a week or so )

The problem is that I m typically seeing a two day delay between the day money is taken from my bank account and before it is credited to my Credit card account. So Im completely lost how to handle this. Is there any better way to handle this without having to create a intermediate buffer account ? ( I did some reading about undeposited account. As I understood it, it is for checks I have received, but has not yet deposited to my bank account )

Thank you everybody again for taking time to respond

--sony

Reply to
sony.antony

As you discovered, Undeposited Funds would not be appropriate - that was incorrect advice.

I see no other solution other than the "intermediate buffer" ("clearing") account. If used for only this one purpose, the sub-Credit-Card account I suggested seems (to me) to be a simple solution. Accountants often use a clearing account for other similar situations; for such general purposes a "Bank" type account works well in QuickBooks.

Reply to
!-!

Why exactly are you worried about the dates matching up, just leave it marked as the day you authorized the payment and you should be good. Or does this have to do with the downloading of the bank statement. (If so can't help you, stay away from that myself)

Btw, about the Undeposited Funds, you are correct about your thinking on that.

Reply to
Leo Navoichick

Reply to
Steve Scott

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