making a payment entry for a credit card account
Here is how it should work:
- First you set up the credit card account.
- Next you either download or enter the individual charges on the credit card as they happen. The category for these charges reflect what is purchased (split if necessary)
- When the payment is due you enter a payment in your checking account (or download it if you don't enter it ahead of time) with the credit card account as the "category" (this is a "transfer" entry from the checking account to the credit card account). This entry will automatically be reflected in the credit card account as a payment, reducing the balance of the account. No "split" should be necessary on this entry.
You only need the payees and charges in one place, in the credit card account. You don't need to split the payment in the checking account.
To enter credit card....
The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. The transactions need to be entered with the date you charged it, not the date you pay the credit card bill.
Then when you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then when you download the payment from the bank you match it to the one you already entered. Then your credit card account should match what you actually owe at any time.
When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer versions have a Transfer column.0