 So we set up our check-in account and then our credit card account we entered transactions from the credit card account Which looked quite similar to transactions We might enter for expenses like utilities and whatnot on the check-in account Except that instead of cash going up the liable the light sorry instead of cash going down The liability went up when we entered those transactions and now we're gonna focus in on those bank feed to bank feed Transactions, which is this is where you get get like kind of an overload of the bank feed The bank feeds are all nice and easy, but now you've got these two bank feeds and each one of them are kind of saying hey Look, I'm taking this transaction. I'm recording it and the other ones know it like no I'm doing the transaction and someone's got to call out and be like I'm the one that's handling You know the transaction, you know, just like you got to call out Who's doing it? Who's catching the ball here? You know, you've got to call it or else the tube Baseball players trying to catch the ball hit each other and then fall on the ground and then the ball lands like in the middle of them You know, so that's what we have here So most of the time I think people would be thinking about this in terms of the checking account and saying okay There's gonna be a transaction that's going out of the checking account to pay off the credit card account So I would think most of the time to me I would think about it as a payment from the checking account that's paying off the credit card account Although you can't think of it from the credit card side of things To facilitate the transaction from the bank feed and then the other sides going to basically the checking account so the basic idea being of course on the balance sheet now we've got this this Liability down here of the 9 6367 that needs to be paid off that needs to go down It's gonna be paid off with a checking account transaction Both of those have bank feeds attached to them now There's another issue here in that when we start to pay these off this amount right here It's not gonna tie out to the balance that is owed because of that first a beginning balance issue We're gonna talk about that in a future presentation So this will flip to be a negative because we're gonna but we'll do that beginning balance issue Like I say in a future presentation All right, so notice that there's kind of three forms that you can think of to do this as like if you were just to say Which form would I be using to pay off the credit card? You'd probably say well, why don't I use an expense form that's coming out of the checking account? That's one form you can use which is just similar or a check form if I was gonna pay it with a check So these two forms are quite similar Usually used to decrease the checking account the other side go into whatever other account We assign the other account this time being the credit card account you would think that would work quite well But and it does you can do that But there's kind of an issue with it in that it'll look kind of correct on the checking account side because you'll have an Expense form, but then you can imagine on the credit card side I'm gonna have this expense form which usually those are the things that result in an increase to the credit card liability But because I used the expense form on the cash account It's gonna have an expense form that's decreasing the credit card liability So for my sorting it doesn't look exactly right. You could do it not a big deal, but it wouldn't be exactly I mean, it's kind of a little messy on the transactions of the credit card You could say Well, then maybe I'll use a transfer form You could do that possibly and a transfer often kind of fixes this problem because if there's two financial Accounts that are having an impact and I recorded as a transfer the transfer could either be an increase or a decrease Say to a check-in account So you could use the transfer and that would work because then on the checking account side of things the detail would be recording instead of an expense form you'd have a Transfer form in here, which that's kind of appropriate. It could again a transfer could go either way and then over here in the credit card we would have a A transfer form that's another thing that you could use you can imagine Possibly using you probably wouldn't think to use like a deposit form But you might if it was a bank feed to bank fee transaction on the cash side You might think about using a deposit form right because if it was going to one checking account to another checking account You could use the deposit form on one of on one of the checking accounts And you'd end up with the same kind of problem as we use with the expense account on one of the bank feed accounts and that would be that it would look right if The checking account that I was using on the deposit side was going into it but if I was going to another checking account that that The other checking account would have a deposit form that would look like an expense Which is opposite to what you would think at the deposit form should look like when I look at the transaction detail and Then QuickBooks adds this other form that's specific to The credit cards to kind of deal with with the same kind of issue Which is going to be a credit card form which they call pay-down credit card So this is kind of like using the transfer form in my opinion in order to like deal with that kind of Transaction detail issue and show it but it's specific to the credit card So though those are the ideas you can use like like any of those forms to do the transaction and It would be fine. The journal entries would still work But when you look at the transaction detail, it'll be a little bit more messy than you otherwise Would like it to be not a big deal, but you know, that's the issue so let's just look at that in a couple different ways here, let's just think about that if I go to the checking account and Notice that it might have recognized so it recognized this transaction So first of all, I can recognize the transaction because This amount of course is paying off our credit card amount So I should have an amount on the credit card bank feeds on 97 or around there for Let's say 97 for 275 47 if I go to the credit card and this side 275 47 so I could go over to the bank account and Obviously if it paired it, I might just match it But let's just look at some of the options if I go into it. It recognized the other side as a credit card So it wants to record it as like a credit card type of transaction as opposed to me categorizing it as like an expense type of form or Or a transfer type of form. Let's do that one first That's the most that would be like the most correct way to do it. Let's do that first and See what that looks like. So I'm gonna say all right. Let's just add this it's gonna record it as Transfer or a credit card payment and if I go to the credit card side Then it just recognized it over here and it paired it for me So I'm gonna say alright, and then if I go to my checking account and run it I should have in my checking account a different kind of thing over here, which would be a credit card There's the credit card payment. So I could sort it by credit card payment now instead of Instead of For for the decreases. So when I look at the decreases now if I'm looking at all the decreases and I wanted to filter them I Can filter by check form if I'm writing any checks the expense forms are decreases So the expense form where are the expense forms are? Decreases and The credit card payment. So here's the credit card payment. There's the expenses So now I can now I can look at these and so now I've got my expense forms And and the credit card payment so I'd have to recognize that when I look at my transactions But at least it doesn't look funny. It doesn't look like a decrease from like a deposit or something That would be weird All right, so then I'm gonna go back on up and if I go to my credit card side of things and I go into the credit card The payment has now been made and that looks proper right so the expenses are increasing the liability in this case And then we're paying it down with the credit card payment coming from the checking account Decreasing the liability because it has now been paid off