We have a lot of credit card payments. Here is what works for us:
We have an AP account called "PAY BY CREDIT CARD". If we have vendors that
only accept credit cards, we set that up in Vendor Maintenance. We use this
AP account for any invoice that will be paid with a credit card. That way,
when you print an aging report for that A/P account only, it SHOULD match
your credit card statement.
We also have a separate bank account set up for "paying" these invoices.
The cash account in Bank Account Maintenance is set to a liability account
named "CREDIT CARD PAYABLE". We pay the invoices using the manual checks
option. When an invoice is "paid", the Credit Card Payable account will be
credited. When we receive our monthly statement, we enter the invoice by
debiting this account. If all goes well, the balance of the account will
zero out every month.
By using this method, we are able to use the actual vendor on the PO. We
are only paying them differently.
Kathleen Wetzel
Mauell Corp
-----Original Message-----
From: ami_miker [mailto:michael.randolph@...]
Sent: Wednesday, November 23, 2005 11:14 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Purchasing Materials with Credit Cards
For raw materials purchased with credit cards, we actually create a PO
with the vendor set to Visa. I add the vendor information under
the "Contact". This allows AP to match up the receipt and PO with the
credit card bill. Since all most all of our credit card orders are by
phone or the web, the vendor never sees a paper copy of the "Visa"
order. Receiving knows what to do with the parts when they arrive and
AP seems to be happy. We do this for all CC purchases that are
received (materials, tools, etc.) Travel expenses are handled in a
completely different manner.
Michael Randolph
Purchasing Manager
American Magnetics, Inc.
We have an AP account called "PAY BY CREDIT CARD". If we have vendors that
only accept credit cards, we set that up in Vendor Maintenance. We use this
AP account for any invoice that will be paid with a credit card. That way,
when you print an aging report for that A/P account only, it SHOULD match
your credit card statement.
We also have a separate bank account set up for "paying" these invoices.
The cash account in Bank Account Maintenance is set to a liability account
named "CREDIT CARD PAYABLE". We pay the invoices using the manual checks
option. When an invoice is "paid", the Credit Card Payable account will be
credited. When we receive our monthly statement, we enter the invoice by
debiting this account. If all goes well, the balance of the account will
zero out every month.
By using this method, we are able to use the actual vendor on the PO. We
are only paying them differently.
Kathleen Wetzel
Mauell Corp
-----Original Message-----
From: ami_miker [mailto:michael.randolph@...]
Sent: Wednesday, November 23, 2005 11:14 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Purchasing Materials with Credit Cards
For raw materials purchased with credit cards, we actually create a PO
with the vendor set to Visa. I add the vendor information under
the "Contact". This allows AP to match up the receipt and PO with the
credit card bill. Since all most all of our credit card orders are by
phone or the web, the vendor never sees a paper copy of the "Visa"
order. Receiving knows what to do with the parts when they arrive and
AP seems to be happy. We do this for all CC purchases that are
received (materials, tools, etc.) Travel expenses are handled in a
completely different manner.
Michael Randolph
Purchasing Manager
American Magnetics, Inc.
--- In vantage@yahoogroups.com, "dlsomers" <dlsomers@y...> wrote:
>
> We frequently use various credit cards to purchase raw materials and
> travel. Our material purchases are flowing to accounts payable.
Does
> anyone have a suggestion for the best way to relieve the accounts
> payable transaction and account for the credit card account proper,
> i.e. as a bank account (asset) or liability? If a liability, how
> would we make the transaction from A/P to the credit card liability
> account itself?
>
> Thanks.
>
> Lois Somers
> International Cybernetics Corp.
>
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