Purchasing & A/P Credit Card Processing

[former_member313593]

We have cases where we place purchase orders to vendors with a company credit card. We would like the PO to be for the actual vendor. When the Goods are received, we would perform a PO goods receipt and A/P Invoice. When the A/P invoices is paid, we need the check to go to our credit card vendor. We would not do a wire transfer to the credit card vendor.

Plus more than one person with thier own company credit card could purchase from the same vendor.

Any suggestions or ideas would be greatly appreciated.

[Former Member]

Scott,

The process you outlined is a little different than how the system is set up to handle Credit Card purchases.

This is the standard process:

1. Setup a GL Account as a clearing account for each Type of Credit Card (helps big time with reconciliation to the cc statement)

2. Set this account as the credit card's account in Banking setup

3. Create the PO, GRPO, and Invoice for the actual Vendor you're purchasing from.

4. When you do the A/P Invoice, you could process an outgoing payment there by clicking the Payment Means button (money bags)

5. Choose the Credit Card tab

6. Select the Credit Card that was used

• you could have a card setup to represent each card in your company, or use one card in B1 to represent them all.

7. fill out any extra information about the card you want to capture

8. You now have closed the Invoice and created the Outgoing Payment by Credit Card

9. The outgoing payment hit the credit card clearing account

10. Now do an A/P Invoice - Service Type for the Credit Card Vendor

11. In the GL Account field, select the Credit Card clearing account

12. Put in the amount the Credit Card company billed on your statement

13. Add

This process creates a temporary AP for the first Vendor, paid immediately by Credit Card.

That clears the AP and moves the balance to the CC Clearing Account

The AP Invoice for the Credit Card Vendor as Service Type with the offset GL set to the CC Clearing Acct moves the balance from the CC Clearing Account into AP for the Credit Card company. You can then pay this AP Invoice as you would any other.

That's not to say you couldn't automate this or devise a simpler process that accomplishes a similar result, but that's the "official" way to process AP Credit Cards and seems to be the most correct accounting wise.

Hope this helps.

Brad Windecker

[former_member313593]

Perfect, thank you

[Former Member]

HI Scott,

Can you please let me know one thing as to where do we get the option of the 'Payment Means ' that you mentioned below??

""When you do the A/P Invoice, you could process an outgoing payment there by clicking the Payment Means button (money bags)""

THanks,