Solution:
There are a couple of ways that this can be accomplished.
First, can wait to enter the expense when the credit card bill is received in the mail.
- The bill should be broken down on a line by line basis.
- Can enter one voucher for the company credit card.
- Each line item will charge the correct project.
- Through A/P payment processing, can then generate an A/P check to pay your credit card vendor.
The second method is for recognizing the expense right away.
- This method would record the A/P voucher for the vendor that the expense was originally for.
- In AP voucher file, can charge the project and reference a 500 level reimbursable expense account.
- Go through A/P payment processing and create a dummy check to pay this voucher.
- Since the cash has not been disbursed yet, would create a journal entry debiting cash and crediting a liability account.
- Then when receive the credit card bill, would enter this into Vision as a new A/P voucher for the credit card company.
- However, when entering in the line items would want to reference the same liability account that was referenced in the journal entry for the one expense.
- This will clear that liability and then can pay the credit card vendor through A/P payment processing.
- Basically will recognizing the expense and the liability in two different A/P vouchers.
The third way this can be done is to make this credit card a bank code in Vision and then Pay the voucher using the bank code. This way would be practical if you decide that you want to pay vouchers with this particular credit card again. If this will not be a habit then this may not be the solution you want to use.
How to set up a Credit Card as a bank code so that you can pay voucher with the Credit Card in Vision:
- Set up a new liability account (For example - 203.00 Citibank Credit Card).
- After you set up the new account, you are going to create a new bank code for your credit card company and reference that new liability account in Configuration \ Accounting \ Banks.
- You would enter in all the vouchers exactly how you would normally through data entry A/P vouchers.
- When you enter the voucher transaction choose the new credit card bank code.
- You will have to run A/P payment processing run for all of the vendor invoices that you want to pay by credit card, use a dummy check number.
- What this will do is clear your liability out of the liability code and will credit that liability account that you referenced in your new bank code. (You will see a negative balance when you run account analysis).
- When you receive your invoice from the credit card company, you would then have to post this through a data entry A/P voucher.
- Reference your real bank code in which you are going to pay your credit card company from.
- In the actual line items of the voucher, you would reference the liability account that is set up in your new bank code. This will debit this account, decreasing your liability in that account.
- Finally, you can then pay your credit card company through normal A/P payment processing.