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
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.
(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
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.