Paying for Purchases with a Credit Card

When you use a credit card to pay for a purchase from a vendor, you need to show the purchase under the Purchase Vendor. You also need to remit the payment to the Credit Card Vendor.

To set up a credit card for this purpose, create a bank code for the credit card on the Bank Reconciliations form. On this form, the Cash Account for the credit card's bank code should be some type of clearing account. To activate the new bank code, add a bank reconciliation transaction Type for "Check."

After you create the new bank code for the credit card, you can then do the following:

  1. Receive and create a voucher for the purchase order as you would for a regular purchase.
  2. Create a payment using the credit card's bank code for the vendors and vouchers.
  3. Print and post the checks.
  4. Add a manual voucher to the Credit Card vendor for the total amount. Use the same clearing account used by the credit card bank code for the distribution on this manual voucher. This way, the vendor's purchases YTD remain intact, and the payment is actually remitted to the Credit Card vendor.