We currently have a very manual system and we would like to make it more efficient.
Our AMEX bill includes invoices that start with a PO and are expensed to jobs and inventory as well as other accounts as well as invoices that are not PO related.
The problem is that the items that are PO related never get cleared out because we do a manual excel spreadsheet and just enter account totals to pay AMEX.
I have read a number of the articles in this forum but many are very old or hard to follow.
Can some detail their process? We have terms of credit card and a vendor of American Express but we are trying to figure out if we need a payment method of credit card or a bank account or both and what the best process is to accomplish this task. We have also read of a credit card clearing account.
There’s a KB article in EpicCare somewhere that basically goes like this:
Set up the Credit Card account in the Bank account maintenance. As many
as you have cards. The Bank GL account should be a credit card liability
account.
Enter the invoice from the supplier as normal.
If wanted, you could set up a credit card A/P using Accounts Payable G/L
Account and use that during Invoice Entry. This would give you a
separate payables from your trade payables. During Invoice Entry, select
the CC A/P account.
Pay the supplier invoice using the CC Bank account with a manual check.
When the credit card statement comes in, enter the credit statement as an invoice with the
previously entered invoices against the liability account as a line item
and then any other expenses as you wish against the appropriate expense
account. This invoice would be entered using the normal trade payables.
Pay the credit card as normal.
What does this do for you?
Expenses on the supplier show up as any other invoice would.
Invoice Entry: Expense → A/P which aids in 1099 processing.
Payment using the CC Bank Account creates a credit card
balance. Cash Disbursements: A/P → CC Liability
Credit Card Statement entered as invoice. Invoice Entry: CC
Liability, Other Expenses → A/P
Payment of the Credit Card: Cash Disbursements: A/P → Cash
Thank you so much, we will test this in our pilot environment. One more question, when you say CC Liability, this is basically the cash account attached to the CC bank account?
That’s right. You enter the CC Liability account number in the Bank’s cash account number for each credit card. When you do the manual payment (the credit card charge), the liability is increased. When you pay your CC statement, it reduces your liability.
You MAY even be able to use Bank Statement processing to import your credit card statement but I haven’t tried that yet.
Ok, so one more question. We are starting this process today, but we have one vendor that is a credit on our AMEX statement. It does not want to allow us to process this. This vendor will never have another invoice. How do you process this credit so your AMEX Liability is at 0.
Just out of curiosity, what generated the credit? You returned something to the supplier?
Are you asking how to get the credit into the AMEX Bank Account (and therefore the liability account)? Are you using bank statement processing to balance the account or is this part of the initial implementation launch?
OK, I think instead of the manual check, we’ll need to enter a Credit Memo for AMEX (so we can apply it to future payments) and make the GL expense account number the liability account.
Can I get some full-time accountants to check my work? @CTCharlie?
Just out of curiosity, what generated the credit? You returned something to the supplier?