Openpro - Accounts Payable Process With Credit Card Transactions
Accounts Payable Credit Card Setup
This guide explains how to setup credit card processing for payables system. There are a few ways this can be done but this is the main way most of our customers process credit cards with payables.
Two cash accounts must be setup.
One cash account, make sure the GL points to your actual cash account, for the credit card, It would be recommended to create a specific payables accounts and assign that account here.
Within the payables class – setup a class for credit card vendors. The expense distribution 1 credit card payables. The expense distribution acct 2 should be the interest expense account.
When paying vendors with credit card, go to menu manual payment and find the vendor.
Select the bills to pay, make sure you select the credit card account under Check/Wire Stock, select Wire under pay method. Select POST when done.
In general ledger, it will reduce the normal accounts payable and increase the credit card payables as a liability.
When entering credit card bill, enter the amount charged on line 1, interest on line 2. Post add when done.
This will create a normal payables entry.
From the general ledger standpoint, this will cancel the credit card payables and enter the interest as expense. This will also increase your normal accounts payable.
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