CREDIT CARD VIA PAYABLES, METHOD 2 (PAYMENTS)

Method #2 to track Credit Card purchases and payments using the Payables Module.

Use the Payables Module to enter Credit Card expenses from the Statement and pay the credit card company using the checkbook. This method is easier than entering each expense as a payable, but it will not maintain the vendor history. You do not need a separate Credit Card GL Account for this method. All money due will be stored in the Payables account.

1. Setup a vendor for the Credit Company.
2. When you receive the credit card statement, Insert a payable to the credit card company, and itemize each expense on the statement in the Expense Category area. Include any interest charges. Do not enter any Balance Forward amounts unless this is your openign entry for the card.

3A. If there are no other open payables for the credit card, click the Pay button and enter the amount you will pay. Do not change the offset expense accounts. If it is a partial payment you will be left with a balance due on the payable.

3B. If there are other open payables for the credit card, go to Checkbook > List Open Bills. Highlight all bills for the Credit Card company. Go to Actions > Other Credits. Enter description “Balance Fwd”. Leave the Credit Amount at 0.00, enter an offset account of any GL Account Number – this will not be posted. Apply a POSITIVE Amount to the old payable and a NEGATIVE Amount to the new Payable. Click OK. This new Payable will now have a Total Due that should match the amount on your statement. Click the Pay button and enter the amount you will pay. Do not change the offset expense accounts. If it is a partial payment you will be left with a balance due on the payable. This technique can be repeated each month, always bringing the balance due forward to the current Credit Card Payable.

See User Guide Note # 128, 171, and 280, for alternate methods.

This method does not maintain a detailed vendor history, but it has the advantage of showing credit card amounts on the Payables reports.