Reconcile Credit Card Window

Top  Previous  Next

It is important to keep records for Credit Card Accounts in agreement with those of the credit card company.  Reconciling Credit Cards is important because errors can sometimes be made by the credit card company or Design Manager users upon recording credit card transactions and to be alerted for possible fraudulent transactions.  For this reason, it is recommended to reconcile the Credit Card Accounts with each monthly statement that is received.


To reconcile Credit Card Accounts, the most recent credit card statement will be required.  Select Accounting - Credit Cards & Reconcile, then click on the Reconcile reconcileButton button to open the Reconcile Card window.


checking - rec cc tab


Reconcile Credit Card grid Tools:


tag button small Mark multiple entries as cleared/uncleared. See Clear Checks and Deposits window for more information.


DetailsButton View the Check/Vendor Invoice Details of the highlighted entry.


GoToSmallButton Go to the highlighted entry in the Credit Cards window.


SuppressClearedButton Suppress cleared charges/payments. Select this button to suppress the enrties marked for cleared. This will reduce the entries on the grid to show ONLY those that have not yet been marked to be cleared on this reconciliation.  It helps to clean up the grid while looking for entries to clear.
UnsuppressClearedButton Show all entries (unsuppress).  To show all of the entries that you have cleared and suppressed, select this button.  All suppressed entries will once again appear on the grid.



Reconciling your Credit Card


The first step is to identify the Account that you wish to reconcile.  Select the desired Credit Card Account on the Account menu.  Next, enter the ending date of the credit card statement in the Statement Ending Date field.  This date will be shown on the statement itself. Lastly, enter in the Statement Ending Balance as seen on your Credit Card Statement. Click the Start button and Design Manager will display the charges and payment information for the Credit Card Account.



Clearing Charges and Payments


The Credit Card Transactions Grid contains all of the charges and payments that you have made that were dated on or before your statement date and were not listed previously Cleared.  The credit card statement will list each transaction that was processed.  Find each of these transactions in the grid and click the Clear (Clr) column to indicate that it is present on the statement.  If there are charges that are not on the list and should be, close the Checking Window and enter the missing charges through the Vendor Invoices, Deposits, and Operating Expenses Window.  



Credit Card Sum Column


This column allows you to tag entries to see a Sum of those entries in the Sum field below the  grid.  This is useful when you have multiple entries in Design Manager that are appearing on your Statement as one Total amount.  Use the Sum column to tag the entries that make up that total.


Sum Tools:

To Uncheck those that are tagged for the Sum (clear the sum amount), select the SuppressClearedButton button next to the Sum field.


To clear all of the Summed entries use the Clear Summed Checks tag button small button.


To Unclear the Summed Checks - select the Reset_UnclearButton button.



Finance Charges and Cash Refunds


If you do not pay your credit card balance off completely each month then the credit card company will add a finance charge to your statement.   To enter these charges you should click the Edit Finance Charge (Edit Fin. Chg).  The Service/Finance Charges Window will appear.


service charge window-CC example2

Click the Add button to the right of the Service Charges Grid to display the Service/Finance Charges Distribution Window on which you may enter the Amount of the service charge as well as the General Ledger Expense Account to which it should be recorded.  As you enter these charges the total amount will be updated in the Total Service/Finance Charges field.  The Service/Finance Distribution Window can also be used to enter cash refunds from the credit card company if they return a percentage of cash for each purchase.


To enter cash refunds, add an entry to the Services Charges Grid but enter the Amount as a negative number.  Cash refunds are usually charged to a Revenue Account or Other Income Account.  When you have entered all of the charges, this number should agree with the dollar amount of service charges less any cash refund on your statement.


Click OK on the Service/Finances Charges Window and you should see the finance charge amount appear in the Finance Charges field on the Reconcile Credit Card Tab.  The transaction for the finance charge will also be marked as cleared.


ckbk _rec cc window - example


Your credit card statement may include totals for the payments, charges, and finance charges that it is reporting.  If so, you can check your work by comparing the Total Cleared Payments, Total Cleared Charges, and Finance Charge totals beneath the Credit Card Transactions Grid to the totals on the statement.


When the totals all agree with the statement, you can review the right panel to see the Totals.  Design Manager will then deduce the Balance by adding any Outstanding Charges and subtracting Payments in Transit to indicate the amount that should be on your Credit Card according to the bank.


The Calculated Balance will be compared to the current balance of the Credit Card in Design Manager in the Computer Balance field.  Any difference will be shown in the Difference field.



rec cc window - example


When The Credit Card Statement Balances! appears, everything is in agreement and you are finished.


rec cc window - exampleBalance


It is recommended that you click the Print button to print a copy of the reconciliation for your records.


cc rec report


Then you can click the Accept button at the bottom to indicate that the reconciliation is complete and correct.


If there is a difference, you will need to re-examine your work.


Common Reconciliation Issues:


If the totals in Design Manager do not match the totals shown on the statement, then one of the following problems may have occurred:


1. You may have neglected to click the Clear column for one of the charges or payments shown on the statement.  In the same vein, it is also possible that you accidentally cleared a charge that was NOT listed on your statement.  If so you can remove the check mark from the Clear column by clicking it again.


2. You have a Charge, Payment, or Finance Charge with an amount that differs from the amount that the statement is reporting.  Look at each transaction that you have cleared and make sure that its amount matches that shown on the statement.  If you find a difference, you can correct it in Design Manager if you entered the transaction erroneously or else you will need to contact your credit card institution if they are in error.


3. You failed to enter a Charge or Payment at all.


4. You entered the wrong Statement Ending Date.