Credit cards are commonly used by landlords to operate their rental properties. Most transactions from your credit card are self-evident — expenses incurred and credit card payments made. But what about when you make payments or earn cash back or rewards on that credit card?
Credit Card Payments
Each credit card payment will appear in the import feed for two accounts: the withdrawal from the checking account and the deposit in the credit card account.
When you book the first, a booked transaction will be added to the system based on that payment record. When you click 'book' for the second, it will find the existing booked transaction and recommend a match that ties both imported transactions to opposite sides of the same journal, showing funds moving from your checking to pay down your credit card balance.
Recording these two points of contact in the same journal is one of the ways that a double-entry accounting system (like REI Hub) helps you keep accurate books without creating duplicate entries.
A credit card payment is a transfer between accounts, so it doesn't count as revenue or an expense. This just shows the movement of money from a checking/savings account, which reduces the liability of the credit card balance.
Credit Card Duplicates
Before deleting any transactions, ensure they are genuine duplicates. You can verify this by comparing your transaction list with:
Credit card statements
Your card’s app or online banking portal
Please note: REI Hub is a double-entry accounting system, which means every transaction should have a debit and a credit so we can track the movement of money. A credit card import feed should have the outgoing transactions in black, and incoming payments or refunds in red -- this is correct. The credit card payment should have a payment leaving the checking or savings account and going to the credit card, and neither of those transactions should be deleted. If you've identified genuine duplicates, you can follow these steps to remove the transactions.
Removing Duplicate Transactions
1. Batch Deletion for Multiple Duplicate Transactions
If you need to delete multiple duplicate transactions:
Navigate to Accounting > Banking in REI Hub.
Select the institution containing your unbooked transactions and click the 'View All' button.
Check the boxes next to the duplicate transactions you want to remove.
Use the Batch Option menu to select Delete.
Confirm the action by clicking Delete.
These transactions will be permanently removed from the import feed and the balance sheet will be updated accordingly. If required later, these transactions must be re-booked manually.
2. Individual Deletion for Single Transactions
For handling an individual duplicate transaction:
Open the transaction list in the relevant credit card feed.
Locate the duplicate transaction and click the three dots next to the Book button.
Select Delete from the options menu.
Confirm the action to permanently remove the transaction.
Ensure you have chosen the correct transaction to avoid errors, as this action cannot be undone.
Alternatives to Deletion
If you suspect you may need the duplicate transactions at a later time, consider the following option:
Ignore Transactions: Instead of deleting, you can hide the duplicate transactions by ignoring them. They will no longer appear on your unbooked transaction list but will remain in your import feed. You can un-ignore them later if required.
Important Notes
Deleting a transaction is permanent, and the only way to restore it is by re-importing and re-booking manually.
Take caution to verify the duplicates carefully before taking action to prevent accidental deletions.
By following these steps, you’ll maintain accurate financial records and streamline your transaction import process in REI Hub.
Credit Card Rewards and Cash Back
The IRS says credit card rewards or cash back should be treated as a rebate or refund. In the Import Feed of your REI Hub account, click "Book" and then select the "Refund Received" transaction template:
We generally suggest you book the refund to the same expense account under which the bulk of your credit card purchases fall. For example, if you frequently use an Amazon credit card for supplies expenses, you will select the supplies expense account when booking the transaction.
Step-by-Step Process to Record Credit Card Payments
Match Imported Transactions
When you import transactions, REI Hub will display your credit card payment in two accounts:
A withdrawal from your checking account.
A deposit in your credit card account.
Accept the match presented by the system for the payment.
Use the 'Credit Card Payment' Transaction Type
Instead of categorizing the payment as an expense, select 'Credit Card Payment' as the transaction type.
Book Transactions in REI Hub
When you book the withdrawal in your checking account, REI Hub will add an intermediate booked transaction corresponding to the payment.
Proceed to book the matching transaction in your credit card account. REI Hub will recognize this as the opposite side of the journal and link the payments together to ensure accurate double-entry bookkeeping. This will prevent duplicate entries in your records.
Verify Unbooked Transactions and Balances
After booking both transactions, ensure that no transactions are left unbooked for your checking or credit card accounts. You can check this status on the Banking page under Accounts in the left-side menu.
Once the transactions are properly booked, open your credit card's Account Register to confirm that the remaining balance reflects your payment.
Handling Partial Payments
REI Hub supports partial payments. For example, if you pay only part of your credit card balance (e.g., paying $80 of a $1,000 balance), the software will adjust the remaining balance accordingly. The credit card register will display the updated balance after the partial payment is recorded.
A credit card payment is not an expense, simply money moving from one account to another.
Still have questions? Reach out to our Support Team via email at [email protected] or call us at (888)939-6865.