How do I categorize credit card payments in QuickBooks

 There are two sides to every transaction. If you are receiving a payment, you debit the credit card account and credit the accounts receivable account.

In Quickbooks, you are crediting the customer’s account and debiting the credit card account. They offset each other. Accounts receivable is credited, lowering the amount owed. The credit card account, linked to the bank account, is debited, increasing the amount in the bank.

At the time you entered the sale, the items on the invoice are coded to specific sales accounts referencing what was sold. When paid, these items are automatically credited. Sales histories show the debits and credits posted against that sale. (ex: apples, oranges, plums, bananas, etc). One sale can reflect many inventory accounts.

Visit our website for further information: Quickbooks Solution