The payment of vendors by credit card will require a clearing account with a Cash (CSH) type account, the use of Cash Disbursements to record receipts as expenses for vendors and finally recording AP invoices to vendors offsetting the credit card clearing account.
Set up Credit Card Clearing Account
1. From the Navigator select Accounting Setup.
2. From the Task Window select Chart of Accounts.
3. Click on New to create the new account.
4. Make sure the Segment is GL, Account Type is Cash and the Designation is APO.
Record cash receipts as expenses for vendors
To record the credit card receipts as expenses for your vendors you will need to use a manual Cash Disbursement (Transactions>Enter Cash Disbursements) session. This transaction will act as pseudo AP invoice by associating the vendor with the expense. In the cash disbursement transaction select the appropriate Vendor for Payee ID, debit the appropriate expense and credit the new Cash type Credit Card clearing account. When the credit card statement is received, you will record the Accounts Payable Invoices to the appropriate vendors, debit the Credit Card clearing account and crediting the expense.
1. From the Navigator select Basic Transactions.
2. From the Task Window select Enter Cash Disbursements.
3. Create a new session selecting the Credit Card Cash Account.
4. Record the document information including the appropriate vendor. Debit the expense and credit the Credit Card Cash Account.
When the credit card statement is received, record the vendor invoice in Accounts Payable. Debit the credit card clearing account and credit the appropriate accounts payable account.
You can then pay your credit card company with a check and you will be able to track your expenses by vendor using the Vendor Activity Report.