CREDIT CARD VIA BANK ACCOUNT

With the Multiple Bank Account option for the checkbook, you can set up a “bank account” as a Credit Card Account. The balance on the bank acccount will be the amount you owe the credit card company.

1. Menus > Vendors
On the Vendor window insert the Credit Card company as a vendor.

2. Menus > Ledger > Account Categories
Insert a GL Account number in the 2000 series (Liabilities), 1 for each credit card.
Example: 2110, VISA
2112, MasterCard

3. Menus > Maintenance > Banks/Credit Cards.
Insert a “bank”, which will be your credit card account.
Click Insert and enter the credit card information. The GL Account will be the GL Account as decided above. Enter the last check number as some number way out of range of your regular checking accounts, example: 10,000.

4. Set up the opening balance on the credit card account:
Go to Menus > Checks/Payables > Checkbook > Select Bank Account > and choose the credit card account. Ignore the message that the last check # was not found.
Go to Transactions > Decrease Cash in Bank.
Leave the Vendor field blank.
Enter the opening balance in the amount field.
Enter offset account 3100, Owner’s Capital (or another account as recommended by your accountant).
Description: CC Opening Balance.
click OK.
Note the amount you owe is displayed as a postive balance.
To examine the entered transaction, click the TRX Inspect button. Note that the Credit Card GL Account has a Credit Balance, which means you owe this money.

5. When making a purchase on the credit card, open the checks window as though you were going to write a check.
Insert a “check” to the vendor, and enter the appropriate offset expense accounts.
Click OK to save the entry. Note that the Balance has been increased. This is the amount of money you owe.

6. To pay the credit card bill, select your regular checking account, enter the credit card vendor and amount you are paying, and enter the Expense Category as the Credit Card GL Account (exapmle: 2110).

This method will allow you to keep a running balance on the credit card account, as well as detailed vendor history without having to enter payables.

If you do not have the Multiple Bank Account Option, See User Guide Notes #128, #171, and #291 for alternate methods.