Confusion Categorizing Credit Card Payments

tmurraytmurray Member Posts: 2

So I'm confused about how to categorize cc payments. It feels as though I would be recording 2 payments. The first being categorizing the itemized expenses and the again as a lump pay down of the credit card balance. How do I go about recording the pay down of my credit card balance? Also, I'm confused why some appear in red and others appear in green? Do they simply cancel each other out?

Comments

  • ChelseaKChelseaK Administrator Posts: 241 admin

    @tmurray Ah, good question! Just checking, do you have your checking and credit card account transactions automatically importing into Wave? If so, you can just create a transfer between your checking account and credit card accounts in order to log the credit card payment. To create a transfer, head to your Transactions page and then 1) add an income to your credit card and 2) add an expense from your checking account. Then, select the boxes on the left beside the two sides of the transfer and hit the 'Transfer' button at the top of the screen. Though you are adding an income and an expense transaction, these are just the two sides of a transfer so this wouldn't duplicate the expenses that are already accounted for in your Credit Card account.

    If you don't have your credit card transactions automatically importing into Wave, you can head to your Chart of Accounts > Add an Account > Liability and Credit Card and then head back to your Transactions page so you can assign your credit card transactions to that account.

  • Jacqui_EN_2018Jacqui_EN_2018 Member Posts: 10

    @Tmurray
    At the top of the page is the option to show all transactions or select an account. Select the credit card account. Black numbers are the charges you make using the card. This ADDS to the balance on the credit card account. These should be categorized to the expense accounts they belong in. For example, a Staples purchase would go to Office Supplies.
    The Green numbers are credits or the payments you made to LOWER your balance on the credit card account. These should be transfers from the checking account you used to pay the bill.
    It would seem the Red numbers are duplicate transactions of the payments you made or are reversals of the payments. After you reconcile the account, you should be able to delete them.
    If you would like help with cleaning this up and preventing this in the future, I can assist you. Please email me at [email protected]
    Hope this helps you!
    Jacqui
    475-882-2243

    edited June 26, 2019
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