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Our credit card statements just came in, and one has a credit balance. There are several large expenses on the statement which i need to book, but one refund caused the balance to go negative. I'm not sure how to enter an invoice with a credit balance. Any ideas?

gloaming wrote:Our credit card statements just came in, and one has a credit balance. There are several large expenses on the statement which i need to book, but one refund caused the balance to go negative. I'm not sure how to enter an invoice with a credit balance. Any ideas?

This is why it is suggested that you use a liability account for your credit cards, and enter each purchase as they come in through Manual Checks, instead of crediting the checking account, you credit the liability account. In this way, if you get a refund or credit balance, it should up in the liability account rather than having to do what we're about to do.

Rather than trying to recount everything I've said in a different thread, I'll link to it here:

https://www.powerchurch.com/forum/viewt ... 784#p41438

My reply gives some reasoning behind using a liability account, but what you need is following item #3 in my reply.

Let me know if that helps, or if your situation is somewhat different.

NeilZ wrote:

gloaming wrote:Our credit card statements just came in, and one has a credit balance. There are several large expenses on the statement which i need to book, but one refund caused the balance to go negative. I'm not sure how to enter an invoice with a credit balance. Any ideas?

This is why it is suggested that you use a liability account for your credit cards, and enter each purchase as they come in through Manual Checks, instead of crediting the checking account, you credit the liability account. In this way, if you get a refund or credit balance, it should up in the liability account rather than having to do what we're about to do.

Rather than trying to recount everything I've said in a different thread, I'll link to it here:

https://www.powerchurch.com/forum/viewt ... 784#p41438

My reply gives some reasoning behind using a liability account, but what you need is following item #3 in my reply.

Let me know if that helps, or if your situation is somewhat different.

I completely agree with you about setting them up as liabilities. I think it was done this way because each statement is paid in full immediately. At some point I may tackle this issue, but I've only been here a matter of weeks and don't want to rock the boat yet! I take it there is no way to enter a negative invoice?

NeilZ wrote:

gloaming wrote:Our credit card statements just came in, and one has a credit balance. There are several large expenses on the statement which i need to book, but one refund caused the balance to go negative. I'm not sure how to enter an invoice with a credit balance. Any ideas?

This is why it is suggested that you use a liability account for your credit cards, and enter each purchase as they come in through Manual Checks, instead of crediting the checking account, you credit the liability account. In this way, if you get a refund or credit balance, it should up in the liability account rather than having to do what we're about to do.

Rather than trying to recount everything I've said in a different thread, I'll link to it here:

https://www.powerchurch.com/forum/viewt ... 784#p41438

My reply gives some reasoning behind using a liability account, but what you need is following item #3 in my reply.

Let me know if that helps, or if your situation is somewhat different.

Oh, sorry, I didn't read carefully. Thanks!