---
title: "Credit card liabilities review"
sidebarTitle: "Credit cards"
description: "Reviewing the AmEx and TD card liabilities, the green/blue coding, and the deliberate two-layer reconciliation with the client."
icon: "credit-card"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

The company maintains separate AmEx liability accounts by entity, plus the TD corporate card.

<Info>
  **Source:** `Rackson_RRS_RCY_Review_Process.docx` sections 10 and 27.3.
</Info>

<Warning>
  **The cross-entity AmEx liability account should always net to zero.** Any nonzero balance signals a transaction that was coded to the wrong entity.
</Warning>

## The green / blue coding

| Coding | Source | Handling |
|---|---|---|
| **Green** | Statement activity arriving through the automated feed | Loads automatically |
| **Blue** | Activity **not** captured by the automated feed | **Must be keyed manually** |

The blue items come from the **missing-items list the client (Caitlin) sends** after she reconciles her own statement-to-file comparison. Her process is: she compares the statement to the file, identifies what the file missed, and sends that list over. PBI records those items manually into the workbook — and **once recorded, the full list becomes PBI's balance sheet reconciliation.**

<Frame caption="Credit card reconciliation workbook, showing the green (automated feed) and blue (manual) coding">
  <img src="/images/customers/rackson/review-process/image3.jpg" alt="Rackson credit card reconciliation workbook with green and blue coded rows" />
</Frame>

<Note>
  **TD does not come through an automated file feed at all.** All TD activity is coded manually from the statement. This is a heavier lift than the AmEx process but has historically been consistent and easy to work with. Whether the TD card can be automated through Sage is a standing open item.
</Note>

## The two-layer reconciliation is intentional

There are **two layers of reconciliation** happening:

1. The **client's own** statement-to-file tie-out.
2. **PBI's** file-to-GL tie-out.

This redundancy is deliberate — a second set of eyes — even though PBI is not the one performing the client's underlying statement reconciliation.

## Step-by-step checklist

<Steps>
  <Step title="Confirm the cross-entity AmEx account nets to zero">
    If not, **search for a transaction coded to the wrong entity.**
  </Step>
  <Step title="Reconcile the automated (green) items first">
    Confirm they loaded completely for the period.
  </Step>
  <Step title="Key the manual (blue) items">
    Request or locate Caitlin's missing-items list and enter those into the workbook.
  </Step>
  <Step title="Work TD directly from the statement">
    There is no automated feed — code all activity manually.
  </Step>
  <Step title="Tie the completed workbook to the GL">
    For each card.
  </Step>
  <Step title="Leave small same-period timing differences alone">
    Roughly **$40 or less** — document larger variances and their resolution.
  </Step>
</Steps>

<Warning>
  **Do not force small day-of variances to zero**, particularly close to period end. Forcing them can create a bigger problem the following period if the timing item reverses.
</Warning>

<Note>
  **Illustrative examples.** A small (~$20) variance was traced to a miscoded transaction; a larger (~$2,000) variance identified earlier in the same review was also traced to a similar miscoding and corrected once flagged to the preparer. A ~$40 day-of variance was left as timing.
</Note>

## RCY (Dave's) — payroll and cards

Handled the same way as PBI's other restaurant clients: take the funding, reconcile the various payroll liability accounts (401(k) and others), and resolve any outstanding AP or payroll checks requiring research.

**The TD card and AmEx reconciliations for Dave's follow the identical process described above.**

<Frame caption="Payroll and card reconciliation detail for RCY (Dave's)">
  <img src="/images/customers/rackson/review-process/image11.jpg" alt="RCY payroll and credit card reconciliation detail" />
</Frame>

## Related

- [RRS AP and credit cards workpapers](/internal/customers/rackson/workpapers/rrs-ap-and-credit-cards) — the 20600 AmEx and 20603 TD preparer steps, including the colour conventions and the auto-payment row
- [AP aging and payroll review](/internal/customers/rackson/review-process/ap-and-payroll)
- [Intercompany tie-out](/internal/customers/rackson/review-process/intercompany-tie-out) — where entity miscodings surface