Pay by Credit Card (Preferred Method) PF8

Credit Card Via “Bank Account”

This method will allow you to keep a running balance on the credit card account, as well as detailed vendor history and control post date for your accounting.

You can set up a “bank account” as a Credit Card Account. The balance on the account 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 MasterCard, 2112 Visa

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.

4. (OPTIONAL) Set up the opening balance on the credit card account:
Go to Menus > Checks> 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. Select our account at the TOP.
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 positive balance (See Red Box/This would be your opening balance). Amount shown in picture below is to serve as example. If your opening balance was zero and you inserted 2500.00 your new opening balance would be $2500.00

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.

Two options for paying with a credit card.

5. To pay a payable with a credit card (bill). Find your payable and click pay.

“Pay From” drop down to select the credit card you set up (Red Arrow 1).
“Payment Type” drop down to select the payment type (Red Arrow 2).
Double Click on the bills you want to pay (Red Arrow 3).
Click OK

6. To charge a charge a credit card without a payable. MenusSQL>Checks (Note: Check will turn a different color for credit cards).
Select the credit card at bottom of check (See Red Arrow 1).
Type the vendor you want to pay (See Red Arrow 2).
We are combining all of our entertainment expenses into one amount (See Red Arrow 3).
(If you are reconciling this account you will have to do add your expenses form your credit card statement to get match).
Click OK.
You can also change Vendor to anyone you want and pay directly. See second check.

7. Pay the credit card statement (i.e. AmEx, Visa, etc.) WRITE A CHECK AGAINST CREDIT CARD LEDGER account:

Menus>Checks.
Select from the drop down the bank account which will pay you want to pay (See Red Arrow 1).
Click Insert (See Red Arrow 2).
Enter the Dates, Credit Card Vendor, amount you want to pay,
Credit Account # (See Red Arrow 3),
Memo and amount you want to pay.
Click OK

Decrease cash in bank.
Menus>Checks>Transactions>Decrease Cash in Bank. (Can be used for online payments).
Select from the drop down the bank account which will pay you want to pay (See Red Arrow 1).
Click Insert (See Red Arrow 2).
Enter the Dates, Credit Card Vendor, amount you want to pay, Credit Account #, Description, Memo if needed (See Red Arrow 3).
Click OK

1/29/24-HS