how to enter credit card payment

Question

How do I enter a credit card payment into my banking account.  If the payee is "Pay Credit Card XYZ" should the category be [Credit Card XYZ] or should the category be [bank account 123] ?

What do the square brackets mean?

Is there a pdf manual that I could download and then refer to it as needed?

Thank you

Cynthia

NotACPA · Answer

The above advice, which I concur with, assumes that you've input your card purchases into that card account … thus increasing your debt (making the account more negative).

The payment/transfer reduces your bank balance while also reducing your card balance (making it less negative), thus netting out.  Your Net Worth isn't changed by the payment/transfer.

volvogirl · Answer

And if you enter it with the square brackets as a Transfer to the other account you don’t need to also enter it on the other account.   A transfer automatically enters it over there and the 2 sides are linked.

When  you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then if 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.

bmciance · Answer

You enter your credit card payment in your bank account as [credit card XYZ].   The square brackets indicte it is not a "category", it is an account.  What you are doing is transferring money from your bank account to your credit card account.