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CREDITCA.CKB

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CREDITCA.CKB

 

Below are two different ways of tracking business expenses paid

with credit cards.

 

 

Paying Vendors and Suppliers with a Credit Card

===============================================

 

If you sometimes use a credit card to pay vendors you could enter it as one

of the 8 allowed checking accounts and use it just like a checkbook. (from

the main menu choose 5,5,A,3; Initialize Bank Accounts)

 

When you use it to pay a bill you'd issue a "check" and just let the

program assign a  "check number" just as if you were using a real checking

account.

 

When you make a payment to that card, record a "deposit" using option

5,5,3; Enter a Deposit.

 

This account will normally have negative balance - which isn't a problem.

 

If you use a credit card for routine purchases such as office supplies you

could likewise enter purchases as if they were made with a check using

screen 5,5,1;  Write a Check.  This is much better than entering the

statement total as a lump-sum because this method gives you the details of

the payee, the purchases and the expense codes for each transaction.

 

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Alternative

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(note that this alternative doesn't work well if you pay your invoices

payable with the credit card because when you use the make payments

screens in Shop-Pro it only offers the bank accounts as payment methods.)

 

Assign your credit card issuer a vendor code and a G/K code something like

995 - Amex

 

Record your statement amounts as one lump sum to this vendor - G/L code.

 

For each line on your credit card statement enter a General Journal

entry to record the specific payee, description and expense code.

 

E.g. you could enter the G/J entry as

Description 1: File Folders

Description 2: Amex Statement 05/17/2006

Name:          Office Depot

Date:          04/29/2006

Amount:        $25

G/L Code:      995 Amex     Amount  minus $25

G/L Code:      750 Supplies Amount   plus $25

 

If you've done it correctly the 995 account will result in zero.

You can enter as many GJ entries as needed.