I have a credit limit of $10000, the bank statements start from $0 counting credit where as the program starts from $10000 and deducts the credit? unless I start and finish with a calculated figure I can’t reconcile my account. Have I over looked something?
have you read this guide Manager Cloud ?
Your credit limit has nothing to do with credit card transactions, which are entered under the Bank Transactions tab. So it need not be entered anywhere in Manager. The starting balance you can enter would only be used if, on the start date you began using Manager, you already had a balance owed on your credit card statement from the bank. It does not refer to an available credit limit.
Sorry, so what is the point of the credit limit field
Entering a starting balance doesn’t refer to available credit but as @Witenden stated “the program starts from $10000 and deducts the credit” to show the available credit
That sounds correct. For reconciliation purposes you should only consider actual balances (calculated figures) and ignore anything to do with credit limits and available credit.
I may have misinterpreted @Witenden’s question due to his two references to “starts from.” I interpreted that to mean he was entering his credit limit as a starting balance in the Bank Accounts tab. That’s why I called attention to entering credit card transactions in the Bank Transactions tab. My perception was reinforced by his comment about reconciliation difficulty, which would certainly happen if you set up your credit card with a starting balance equal to your credit limit.
I also note that @Witenden did not, contrary to what you wrote, mention that the program deducts credit to show the available credit. He did not, in fact, mention available credit anywhere, or I would have realized the other possible context of his question.
Nevertheless, I should have taken the time to write a more thorough explanation covering all possibilities. I’ll add another response to rectify things.
@Witenden, I apologize if my earlier brief reply misled you. It would have been clearer if I had said credit limits need not be entered rather than should not be entered. I’ll edit my earlier post accordingly. I was only trying to keep things short by avoiding distractions. So here is a little more information.
Credit limits on bank accounts are entirely optional. If you use them, Manager will calculate and show remaining available credit in the Bank Accounts tab. But the program will not prevent you from entering a transaction that takes you past your limit. And after you do, it will not show a negative available credit. It only shows zero available credit. So they are purely informational. Further, they have nothing to do with bank statement reconciliation.
The most common problem with credit card reconciliation is when users forget that the bank produces statements from its perspective, while Manager lists transactions and balances from yours. What is a credit to the bank is a debit to you, and vice versa.
Normally, a credit card account in Manager would begin with a zero balance (unless a balance is carried over from a previous accounting system). When you spend money and post to the credit card, its balance becomes negative. As you spend additional money, it grows more negative obviously. In this, the behavior of a credit card account exactly matches an ordinary bank account. But where a regular bank account is hopefully always in positive territory, a credit card is almost always zero or below.
When you begin reconciliation, depending on exactly what transactions have been entered, Manager will ask you to enter or confirm balances on given dates. You must be certain to enter credit card balances as negative amounts (unless you happen to be carrying a reverse balance with your card issuer due to refunds or something similar). That’s because you are entering your balance, not the bank’s balance. So if your card statement says you owe $3,500, you hopefully have a statement balance in Manager of -$3,500.
Also be aware that clearance dates of transactions can affect the reconciliation process. If you do not set a clearance date, or mark a transaction as Pending, Manager will assume it cleared on the transaction date. That can produce reconciliation problems that are very tedious to track down, because you have to look at every transaction individually.
Mention anything about “starting balance”, which your response became totally focused on.
They did not, in fact, mention “starting balance” anywhere, however they did very clearly mentioned “bank statements start from” and “program starts from”, so how can these possibly get misinterpreted as references to “starting balance”.
So keeping thing short converts “So it should not be entered anywhere in Manager” into being “Credit limits on bank accounts are entirely optional”. Interesting.
Tut, I appreciate your information and I apoligaize for my lack of information to you. I am aware the credit limit is just a reference (as I played with it) The program works fine and the total add up correct but in revese to the bank statement. I entered the starting ballance on from the bank statement, downloaded the transactions. The start ballance of EG $5500 This would be owed (spent), The program subtracts from this where as the bank adds to it. Eg if you spend another $3000, the bank statement will read $8500 but the program will read $2500, the maths is correct just opposite.
i will repeat what @tut has said…
so…
change the opening balance to -5500 (minus 5500)
The transaction are imported as negative fugures.
I am entering the Banks ballance as shown?..They are opposite formates.
Thank you for all your help…I have it sorted now. using a condination of negatives as positives and vise verser. I will just write notes on what i’ve done.
Thank you.
Is there a provision for notes?
you can create a custom field for notes.
Just to be absolutely clear we understand one another, you should only enter a starting balance if you (a) owed money on the credit card on the date you began using Manager AND (b) will not enter the transactions contributing to that balance. For example, you start using Manager January 1st. On that date, you owe $5,500 on your credit card from transaction in the preceding December. You would enter a starting balance of -$5,500, but would not import the credit card statement for December. Nor would you manually enter the December transactions, because Manager will ignore them since they are dated before your start date.
I’m not sure whether you sorted things after being reminded by @spandan888 of the need to enter the starting balance as negative or before. But what you wrote in your response directed to me (quoted above) is not correct. The bank’s statement would start at $5,500 and move to $8,500 with the additional spending. In Manager, your credit card account balance would start at -$5,500 and move to -$8,500. When you pay the credit card issuer $8,500, your credit card balance in Manager will return to zero.
I ended up just entering the bank statement amount as a negative and it worked fine. thank you for your help.Paul.