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Credit Card Deposits

You can reconcile your bank statements more easily IF you group your credit card payments into deposits the same way the bank groups them together.

When you enter Sales Receipts or Receive Payments on Invoices, be sure to enter the correct Payment Date and Payment Method.  You need the correct date and payment method to make it EASY to group them like the bank does. 

Set up the following on your Payment Methods list:  AE (or Amex) for American Express, D for Discover, M for MasterCard, V for Visa, or MVD for MasterCard-Visa-Discover.  Group the MasterCard, Visa and Discover payments together as MVD because the bank groups them together that way.  Do NOT group all credit cards together into 1 Credit Card payment method.  If you group all CC payments together, you make it difficult to reconcile your bank statements.

Your bank groups MasterCard, Visa & Discover payments together into deposits, but groups Amex payments together separately from the other 3 cards. 

You want to group your undeposited funds together the same way the bank does.  Click on Banking, Make Deposit, click on all American Express payments with the same date, click OK, make sure the checking acct is correct, the date is correct, and overwrite “Deposit” with AE 1, AE 2, AE 3, etc. to reflect which card and how many payments are grouped together into this deposit.  Look to see all Amex payments are listed below, click Save & New.  Repeat above for all MasterCard, Visa & Discover payments on the same day.  Now group the next day and make deposits, continuing until all CC payments are grouped into deposits.

When you reconcile your bank statement, check that your deposits are matching the deposits on your bank statement.  If they do match, congratulations.  If they do not match, re-examine how the grouping in QuickBooks differs from the bank statement, and make the proper adjustments.  Look at your merchant statements, both paper and online, to help you figure out how your merchant service groups the payments into deposits.  Then, match your groups to those of your merchant services. 

Sometimes the merchant services company subtracts their merchant fees from each deposit.  I cover this in my onsite and online tutorials.  I will cover this in another blog post.

©2011, Linda Qbq Russell, QBQueen.com

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2 comments to Credit Card Deposits

  • Appreciating the time and energy you put into your website and detailed information you provide. It’s nice to come across a blog every once in a while that isn’t the same unwanted rehashed material. Wonderful read! I’ve saved your site and I’m including your RSS feeds to my Google account.

  • QBQueen

    The quickest, easiest way to handle the $-Amt that American Express holds out of your deposit is as follows: In the “Make Deposits window” (not the Payments to Deposit window), you will see a list of one or more American express payments that you are depositing for that date. On the first blank line immediately below the last American Express payment, type in “Received From” Amex Fees (add to Other Names list), “From Account” CC Merchant Fees Exp (add to Chart of Accts list) and at the far right, type in “Minus (-) the Amount of the Fees.” Now your Deposit Subtotal and Total will match the $-Amount deposited in the bank and showing on your bank statement. It’s all good.

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