At times you may want to pay a Vendor with a credit card to take advantage of miles or additional payment terms, etc.
Before you can pay a vendor by credit card, you will need a new account in your General Ledger (or GL). It will be a LIABILITY account, named something like "American Express Payable". Also, if you intend to write a check and pay the credit card company from inside TeamDME!, you’ll need to add them in as a vendor.
Now that the Liability account has been created, we can proceed to pay a vendor invoice with a credit card.
As an example, we are going to create an Invoice from Invacare for $1,000 with our American Express card.
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Step 1 |
Enter a Payables invoice for Invacare and post it into the system as you normally would. When you do, a debit entry of $1,000 (to something like inventory-wheelchair) and a credit entry of ($1,000) (to Accounts Payable). GL Account Name Debits Credits Inventory-Wheelchair $1,000.00 Accounts Payable $1,000.00 When you are ready to pay the invoice with the credit card, you will edit the invoice to mark it for payment (by putting in a P for Pay Immediately). |
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Step 2 |
Change the checking account GL number from Checking account to the Credit Card Liability account we created earlier (American Express Payable). |
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Step 3 |
Print the pre-check register with a check number of 0 and a check date of when you are paying, print the post-check register and then post your vendor checks. This would give you journal entries of $1,000 debits (to Accounts Payable) and ($1,000) credit to the Credit Card liability account (American Express Payable) GL Account Number Debits Credits Accounts Payable $1,000.00 Credit Card Liability $1,000 And you are done. This clears the Vendor Invoice out of the system, as there is now now remaining balance on the invoice. You have also increased your Inventory account (with a $1,000 debit), and increased your Credit Card liability account (with a $1,000 credit). |
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