Please can I have some advice. To process our credit card payments I am used to setting up the CC as a supplier on the ERP system. Then I can set dummy PO’s against the CC Supplier and then manage the payments to it via AP Payments against the CC Statement.
Our FD does not wish to do it this way so I am a bit of a loss of any other methods available. We need to book these costs to a Job or Project
I know there’s instructions here on the site somewhere but the recommendation at one time was to make the credit card a Bank and not a supplier. You still enter POs for the actual supplier and pay them out of the credit card bank when you charge things. The bank’s account number is the liability account. You can now reconcile charges like any other bank account.
To pay the credit-card company, I think people did a bank transfer to reduce the liability, if I remember correctly.
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Thanks Mark,
Our FD does not want to set up PO’s though and she was sure our company have done this before but the individuals have left the company so trying to understand different options.
How is she paying these items today? Expense reports?
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Via a credit card control account and then a manual journal
BTW, no purchase orders required in the proposed method. All credit card charges without POs would be entered via AP Invoice Entry and paid through the credit card “bank.” No manual journal required.
OK, so they are not purchasing of assets (inventory, subcontracting, etc.)? Otherwise, those manual journals will make the subledgers not balance with the balance sheet. Manual journals often break the integrity of ERP processes since they don’t tie to any subledger, where we’d rather have users running reports instead of granting them into the G/L.
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Setting up a Credit Card Company as a Supplier in Epicor.
This is a bad idea.
I was told by our accounting team this was a good way to organize payments and not create a bunch of unnecessary suppliers for one time or simple repeat internet purchases.
This is what happens, you have a scattered searchable history in requestions or purchase orders because everything will be under the SUPPLIER or is under AMEX with a purchase point, it gets hard to search and find a supplier because they are under purchase points.
Over time you will create duplicate purchase points for the same supplier because they are hard to find and the system is not set up to use them this way.
Next accounting will switch from AMEX to CHASE credit cards then you start the whole process again duplicating all the purchase points under another Supplier called CHASE.
Credit Cards are a method of payment, not a supplier.
Don’t bork your system.
Just my opinion of what can happen if it gets out of control for what it’s worth.
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The other problem with making the credit card company the supplier is that it can affect 1099 reporting in some cases, because charges for the supplier are reported against the credit card company understating the 1099 amount.
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