CREDIT CARD VIA PAYABLES (PAYMENTS)

Method to track Credit Card purchases using the Payables Module.

Use the Payables Module to enter Credit Card expenses and pay the credit card company using the checkbook.

1. Go to Ledger > Account Categories
2. Insert a Credit Card LIABILITY Account in the 2000 series. You may want to start all your short term loan accounts with 21xx. For example, set up a VISA account as 2110, a Mastercard Account 2120, etc.

3. When making a purchase using a Credit Card, enter a Payable for the purchase. The vendor should be the real vendor, not the Credit Card Company. This will maintain a detailed Vendor history. Then open the Payables List of Open Bills, select the bill entered, use the Actions > Adjust A/P pop-up menu, and apply to the credit card account 22xx. This transaction will “pay” the vendor, and put the balance due onto the credit card account.

4. When writing a check to pay the credit card, go to Checks, and Insert a check for the payment amount. The offset account will be the 22xx credit card account.

You can also link the payable account to a “bank”.

See User Guide Note # 128 and 291 for alternates methods.

This method requires the extra step of “paying” the payable, but it has the advantage of maintaining a detailed vendor history.

Revised 7/29/2016 – SV