Recording Credit Card Charges
There are 2 ways to record credit card charges:
1. Follow the steps of Recording Vendor Invoice to record the purchase. Debit an expense account and credit Accounts Payable.
Example: If a school purchases laptops from Apple, the invoice would be associated with the Apple vendor.
2. Follow the steps of
Recording Vendor Payment to record the payment of the newly generated invoice with your credit card. Debit Accounts Payable and credit the liability account associated with your credit card.
By Recording Miscellaneous Payment
1. Follow the steps of Recording Miscellaneous Payment to record the purchase. Debit the expense account and credit the liability account associated with your credit card. Note: This method is used for miscellaneous charges for which you may not want to record the vendor in the system.
Paying Off Credit Card
Ensure that the credit card statement balance matches the balance on your credit card's liability account as of the statement date.You can see the posted balance of your liability account on the Finance > Ledger >
Chart of Accounts screen. You can use the date picker to specify the statement date.
There are 2 ways to record credit card payments:
1. Follow the steps of Recording Vendor Invoice to record the new balance from your credit card when you receive the statement. In this case, the vendor is your credit card company. You can debit the liability account associated with your credit card and credit Accounts Payable.
Note: Select the credit card liability account when creating a
Product to be used on the invoice.
2. Follow the steps of
Recording Vendor Payment to record when you pay the credit card using the funds from your bank account. You can debit Accounts Payable and credit the bank account. 3. Follow the steps of
Writing Checks to print a check in case you are paying your bank with a check.
Note: This method can be used for both checks and bank transfers.
Pay by Recording Miscellaneous Payment
1. Follow the steps of Recording Miscellaneous Payment to pay the credit card using the funds from your bank account. Debit the liability account associated with your credit card and credit the bank account.
2. Follow the steps of
Writing Checks to print a check in case you are paying your bank with a check.
Note: This method should only be used for bank transfers.