|
Setting Up The Credit Card
| 1. | Create a general ledger detail account for each different credit card that you use. This should be a liability account. If you use more than one credit card, a totaling account may be appropriate to summarize your total credit card liability. For our example, we will use GL account number 2401 with the description “My Credit Card”. |
| 2. | Set up a new checking account for each credit card that you use. It is important that the GL Account in the banking record matches the credit card with the same description in the GL Chart of accounts. |
| • | GO > Accounting > Banking > Setup Financial Accounts > Commands > New |
| • | Assign a new Account ID #, and click OK. |
| • | Fill in the requested information. The GL code should be your liability account for the credit card. |
Paying The Bills
| 1. | Go into AP Disbursements. |
| 2. | Change the checking account to the checking account for the credit card that you wish to use to make payment. |
| 3. | Select the items that you wish to pay, just as you would to write checks. |
| 4. | When you have selected the items, make the print checks selection. |
| 5. | Print out the checks on plain paper. You should make up a starting check number. |
| 6. | Use the voucher to notify the vendor which bills you are paying with the credit card. |
When The Credit Card Bill Arrives
| 1. | Go into the checkbook for the credit card. |
| 2. | Verify that the reconciled balance matches the beginning balance on the credit card statement. If it is not, it means that the activity from the prior bill was started but not completed. |
| 3. | Reconcile the items in the checkbook with the credit card statement using the reconcile command. Be sure to mark each item on the credit card statement that you find in the checkbook. |
| 4. | Use the Withdraw command to create one or more new entries for items on the statement that were not already on the checkbook. |
| 5. | As you create the check records, switch the flag from New to Reconciled. It will save a step later. |
| 6. | You should use the Create AP option to create an accounts payable record for each check entry. The GL distribution should be to the appropriate expense accounts. |
| 7. | When you have finished, your reconciled balance should equal the ending balance on the credit card statement. |
| 8. | Use the Deposit command to enter a deposit for the amount you plan to pay on the credit card. The deposit will be reconciled when the next month's credit card statement is received. |
| 9. | Go into AP Entry and create an accounts payable record equal to the deposit that you recorded. The GL Distribution for this record should be to the GL Account number for the Credit Card. In our example, account number 2401. |
| 10. | Pay the accounts payable record with your regular checking account. |
|