Reconciling American Express

eshoaff

I have a Mexican American Express Platinum card, I don't know if the American cards have this system or not. When my purchases for the month exceed $50,000 MXN, American Express automatically takes the excess over $50,000 and adds it as a credit to my account and then they bill that excess over a three month period without interest. For instance last month my charges were $80,000. They added a credit of 30,000 to my balance and a debit of 10,000 with two more owed over the next two payment periods.

Here is my question: How do I categorize the credit and then the payments? For a long time now, I have just left them uncategorized. Every time I run an itemized category report, that uncategorized category just gets getting bigger and it nags me. I'd like to clean it up but don't know how to go about it.

Thanks in advance.

NotACPA

I'd be inclined to create a 2nd liability account, an offline account, and transfer that $30,000 from your primary account to this 2nd account.

Then, make the payments as needed.