Credit card reconciliation issue

1

We use accrual method for accounting. As such, when using a credit card, the charges are entered using the transaction date. I’ve notice a problem when it comes to reconciling:

I have a charge with a transaction date that is within the date range of the period being reconciled. The bank however did not post this charge until 3 days later, which put it outside of the period being reconciled.

The only way to “reconcile” is to change the transaction date to match that of the posting date. This work-around however, pushed the charge into the wrong period of the P&L.

  • transaction date (purchase): 27-FEB-2018
  • posting date (bank): 2-MAR-2018

Any thoughts on best way to handle this? I’d like to keep charges in the period for which the transaction occurred.

Thanks,

2

You did not say how you have your credit card set up. But you should have set it up as a bank account. See this Guide: Manager Cloud. Transactions should be entered with the date the expenditure occurs. But mark them as Pending until they appear on the statement (or in the card processor’s activity list, which is equivalent). When they show up on the statement, change status to Cleared, with the date posted as the clearance date.

3

Thanks for the quick reply @Tut!

I do indeed have it set up as a bank account. The solution was to leverage the cleared/pending flag and/or the “cleared date” to include/exclude the transaction from the reconciliation scope.

Thanks again.