How can I enter a payment by credit card for items received on PO?

Create a Liability account in the GL for Credit Card Due. Use AD-B and make that liability account a "Checking Account".  Enter the Vendor invoice through AP-C as COD and choose the Liability checking account to make the payment. This records payment to the vendor in AP Payment History and posts a credit in the GL to the liability account. When the credit card bill comes in, enter it as a voucher in AP-B and distribute to the liability account, then pay as usual. This solution accomplishes both recording AP Payment history to the actual vendor and proper GL posting along the way.

The "Check Register" for the Credit Card liability account can be used to reconcile the credit card bill against purchases made.  Items that are legitimate charges on the credit card bill but not in the "Check Register" such as travel and entertainment expenses would be vouchered to the credit card vendor in the usual way and posted to the appropriate expense account while the total of items in the "Check Register" would be posted to the liability account.

Back to FAQ