 let's get an idea of what i'm talking about here so if i go back to the to the balance sheet and let's go ahead and scroll down to where the credit cards are liabilities so we've got a master card here so if i go into the detail of the master card then we have our normal transactions so if i make a lot of transactions with a credit card then you could think of it basically as an expense type of form that in essence we are generating with the credit cards which is similar to a checking account but now we're going to be increasing the liability of the credit card and paying for normal expense type of items and then typically we're going to be paying down the credit card at some point with that amount that we're going to pay out of the checking account that's then going to be paying down the liability so it's going to go from inter transaction from one bank feed or financial institution account to another bank feed or basically financial institution account now if i record that as is natural to do with an expense form out of the checking account it's going to show up here as an expense form which could be a little bit confusing because now the expense form is going to be going kind of in the opposite direction uh then then the other expenses right it's going to be decreasing the the value here whereas these expense forms were increasing it so therefore you might want to use another form in order to make your payments that's kind of the general idea although again i think the expense form isn't too burdensome to do especially if you don't have a lot of transactions on the credit card but if well let's check it out i'll show you the two forms and see what happens so if i go back on over and let's say we're just going to pay off the credit card so the credit card i'm going to say i'm going to pay it i'm going to pay it out of my checking account and i'm just going to use what would be natural and expense form because i'm paying it out of the checking account same expense form is usually what's created when you make a bank feed kind of transaction as well and you record a decrease to the checking account so i'm going to hit the plus button we're just going to say it's going to be an expense form and we're going to say it's going to be uh the the payee i'll just keep it as as blank for now it's going to be the the credit card so i could put the credit card but i'll keep it there and we'll just say that we're going to be paying out the category of the i think it's master card was it master card account so there's the credit card account and let's just say $50 so this is going to decrease because it's an expense form the checking account and the other side's going to be going to the the uh master card that's what would naturally what you would kind of think to do so i would say okay save it and close it and then if i go into my balance sheet and i scroll up and run it and i go into my my checking account then we would have just what we would expect an expense type of form now the expense form's not going to to an expense because expense form really just means decrease to the checking account it's like a check form without the check number and the decrease of the 50 so that makes sense to me if i wanted to sort this for example by decreases to the checking account i could sort by expense form which makes sense because that's the form typically used to decrease the checking account if i go back though and i go into my my liability account for master card then there's a little bit of confusion here because now normally i have these expense forms but then down here i have an expense form that's going the opposite direction because the expense form is designed to go out of the out of the checking account and and therefore it's going and usually goes to it to something we're purchasing like a fixed asset property planting equipment or typically an expense so that's where it looks a little bit funny if i wanted to sort like my credit card transactions for for things that i purchased like increases to the credit card then this would be stuck in there and if i wanted to search just for my payments it becomes difficult to do it if i wanted if i wanted to go in here to this transaction detail and say hey i want to look for all of my uh my payments of the credit card i can't do it because i can't search by transaction type it's not as easy i can't do it as naturally so i'd like to maybe change this type to something else now the other two options you might use is you could use maybe a transfer form is the other natural thing that would come to mind because although you're not transferring from checking to checking bank account to bank account you're still going from you're still going from a financial institution account that you can use bank feeds from to another financial institution account so you could you could use that you could say okay maybe i'm going to use the good old transfer form here and say it's going to come from my checking account and it's going to go into the master card uh account and i'll say this is for $75 let's say just let's say for $30 i think we're running low on a balance over there on the credit card side so $35 so so this will do the same thing same transaction but now it's going to record it in that detail as a transfer which could help my sorting so it's really just a sorting thing the journal entry will be the same so let's save and close it and so now i can i can say okay close in this out and then i can run my report go back into my checking account so now down here i've got a transfer so that still kind of makes sense for me for me in this side of things so if i was to try to look at look at all the decreases then i would have to take into consider the consideration the transfers which could be an increase or decrease whether i'm transferring money in or out of the checking account and if i go to the other side on this side to the the master card going into that now i can see it as a transfer now if i record this as a transfer then if i'm trying to look at all my payments and i made them all this transfers i can sort so what i mean is i can customize this and i could start to say okay i want to filter this and i want to look at it by transaction type and then instead of picking expense which won't help because everything because the expenses are going up and down if i make all my transfers the payments then i can run it and i can sort by the transfers and if i have all of the payments as transfers it's a way that i can sort it possibly a little bit easier so the journal entry is the same either one will work and then the other option is is if i hit the drop down and i go down to the pay down credit card so i go to the pay down credit card and so now same kind of idea it's like a transfer but they give us this other option to sort it so now this is going to give us a very another kind of thing that i can sort by so if i make all of my payments on this pay down i could say i'm going to pay down the master card i'm not going to put a pay i'm just going to say it's for ten dollars let's just say five dollars because i'm getting low and a balance on the credit card and then i'm going to say the other side's the checking account same thing but now it's going to have a different description same journal entry in other words transactions going to be the same so i'm going to say save it and close it let's go to the balance let's go to the balance sheet run it and check it out if i go to the checking account and scroll down now i've got the five dollars but now it's in there is a credit card payment which could be good or bad because now i can search all of my data in here if i make all of my credit card payments as a credit card payment form then it might be easier for me to search just for my credit card payments however if i want to look for all my decreases to the checking account i've got to remember that now i've got expense forms i've got check forms i've got other kinds of check forms i've got possibly transfer forms which could go up or down and i've got the credit card form so it's kind of a sorting issue that you're dealing with the transactions the same you can use either one it might not be a big deal to you the fact that that you can't sort for that you know that you have these different things but these this is what you kind of want to think about where the differences are and where that might help you to organize your data it's like