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I currently have an ongoing billing dispute/inquiry on my American Express Business Charge Card that is causing me problems when reconciling this account in Quickbooks. Since my statement balance doesn't reflect the dollar amount in dispute, how can I reconcile?

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You could make an entry for the disputed charge as if you were going to lose the dispute, and a second entry that reverses the charge as if you were going to win the dispute. You could then reconcile the account by including the first charge in the reconciliation and excluding the reversal until the issue has been resolved.

  • How would this apply to a partial dispute, meaning the original charge is $100 and I am disputing $20 of it? My statement balance would be $80 but that is because I am not responsible for the $20 while the dispute is being investigated. My total charges still equal up to $100. – Brian David Berman Dec 21 '11 at 16:51
  • You could make a third entry. So, the first entry is the charge for the original $100, the second is a refund of $20, and the third is a charge for the $20 in case you lose the dispute. The first two entries would get reconciled against your statement, and the other would either get reconciled to a later statement (if you lose) or just deleted (if you win). – Randy Coulman Dec 22 '11 at 0:46
  • American Express doesn't add a line item for the "pending reversal", it is simply take off my total amount due with no detailed explanation. At the end of the dispute period, they will either give me a permanent reversal (which would then reflect a line item on the current statement period) or just readjust my total amount due. So when you said "the first two entries would get reconciled against your statement", that wouldn't work since there is no line item for the reversal (yet). – Brian David Berman Dec 23 '11 at 19:16
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What I would prefer is top open a new category charges under dispute and park the amount there. It can be made as an account as well in place of a income or expenses category.

This way your account will reconcile and also you will be able to track the disputes.

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    Sorry, I'm new to all this. Could you show what the entries would look like? Thanks. – Brian David Berman Dec 22 '11 at 14:30
  • In Quickbooks add another account to your account list. Named it as "Disputed Charges pending redressal". Put it under Other Assets. While reconciling, enter the disputed transaction in QB and put it in the newly created account. This will reconcile your CC account. However, outstanding will appear in your new account reminding you that charges are pending settlement. When charges are reversed by the bank, you can put another entry in the same account in CC account. If they are not, you can change the original transaction into the appropriate category. – Natwar Lath Dec 23 '11 at 1:52

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