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Credit Card Reconciliation

Learn how to reconcile your credit card

Bobbie Combs avatar
Written by Bobbie Combs
Updated over 5 months ago

It is important to keep records for Credit Card Accounts in agreement with those of the credit card company. Reconciling Credit Cards is important because errors can sometimes be made by the credit card company or Design Manager users upon recording credit card transactions and to be alerted for possible fraudulent transactions. For this reason, it is recommended to reconcile the Credit Card Accounts with each monthly statement that is received.

To reconcile Credit Card Accounts, the most recent credit card statement will be required. On the left side menu, click on Accounts Payable and then Credit Card. Next, click on the Reconcile button in the top right. Select the Credit Card Account you want to reconcile, enter the Statement Date and Statement Ending Balance. Finally, click the Start Reconcile button.

You'll see a list of all the charges and payments that you have entered into Design Manager that were dated on or before your Statement Date and were not listed previously Cleared or already reconciled.

Above the list of charges and payments that you have entered into Design Manager, you'll see:

  • Outstanding Charges: charges that have not been marked as cleared

  • Payment in Transit: payments you have entered towards your Credit Card that have not been marked as cleared

  • Balance: the sum of the statement ending balance and outstanding charges less payment in transit

  • Computer Balance: the net amount of the Credit Card Account as of the Statement Date

  • Difference: the difference between Balance and Computer Balance

Your credit card statement will list each transaction that was processed according to the credit card company. Find each of these transactions in the reconciliation grid and select by clicking the box in the far left column. As you select transactions as cleared, you'll see the Total Selected field change with your selections.

If there are charges that are not on the list and should be, enter the missing charges through Accounts Payable - Vendor Deposits & Invoices page. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill. Design Manager will save your progress for any transactions you have already cleared.

Once all transactions have been selected, click the Mark Cleared button on the right side above the transactions grid to indicate that the transactions present on the statement.

As the transactions are marked as cleared, you can see the Total Cleared field change to reflect the new amount. Once cleared, you can review these transactions by clicking on the Cleared tab at the top left. In the Cleared tab, you can mark any transaction as Uncleared in case you made a mistake. This will move the transaction back to the Outstanding tab.

As you clear transactions, you can review the top panel to see the Totals. Design Manager will then deduce the Balance by adding any Outstanding Charges and subtracting Payment in Transit to indicate the amount that should be on your Credit Card according to the bank.

The Balance will be compared to the current balance of the Credit Card in Design Manager in the Computer Balance field. Any difference will be shown in the Difference field.

When the difference shows as $0.00, everything is in agreement and you are finished.

You can get create a Credit Card Reconciliation Report which will can show all cleared entries by clicking on Get PDF.

Finally, you can click the Accept Reconciliation button at the top right to indicate that the reconciliation is complete and correct.

If there is a difference, you will need to review your work and, if needed, enter missing charges through Accounts Payable - Vendor Deposits & Invoices. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill. Design Manager will save your progress for any transactions you have already cleared.

After you have accepted the reconciliation, you can view past reconciliations by clicking on the Reconciliation History button at the top of the page. You'll see a list of reconciliations and can view the Credit Card Reconciliation Report by clicking on PDF or deleting the reconciliation by clicking on Void. When you void the reconciliation, you can go back and reconcile the period again. Note: You can only void the most recent reconciliation period. If multiple periods need to removed, just void each one in turn.

Finance Charges and Cash Refunds

If you do not pay your credit card balance off completely each month then the credit card company will add a finance charge to your statement. To enter these charges, you would enter an Operating Expense to do so. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill. After you have added this finance charge, you can return to the Credit Card Reconcile and you'll see the new transaction added and can mark it cleared to match your statement.

To enter cash refunds, you would enter a General/Misc Bill with a negative amount. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill. After you have added this cash refund, you can return to the Credit Card Reconcile and you'll see the new transaction added and can mark it cleared to match your statement.

If the totals in Design Manager do not match the totals shown on the statement, then one of the following problems may have occurred

1. You may have neglected to click the Mark Cleared button for one of the charges or payments shown on the statement. In the same vein, it is also possible that you accidentally cleared a charge that was not listed on your statement. If so go to the Cleared tab and you can select the transaction you want to remove by checking in the box to the left and clicking the Mark Uncleared button to the right.

2. You have a Charge, Payment, or Finance Charge with an amount that differs from the amount that the statement is reporting. Look at each transaction that you have cleared and make sure that its amount matches that shown on the statement. If you find a difference, you can correct it in Design Manager if you entered the transaction erroneously or else you will need to contact your credit card institution if they are in error.

3. You failed to enter a Charge or Payment at all. If so, enter the missing charge or payment through Accounts Payable - Vendor Deposits & Invoices. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill.

4. You entered the wrong Statement Ending Date or Ending Balance. If so, back out of the Reconciliation and re-enter the correct Statement Ending Date or Balance.

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