Credit Card Charges

[kilpatrick]

Hi everyone!

We have PowerChurch Plus 11.5. I would like to know how other churches handle this issue. In December we have issues when charges are made to the credit card for ministries that have budgeted for items, but the statement comes in January. The budget the items were purchased for are no longer on the new budget because it is a different year. In the past we have just said that no one can use the credit card in December (which doesn't always go over very well!). Would anyone share how they handle this?

Tina
Kilpatrick Church

[Matt]

I would recommend that you set up a liability account for the credit card charges. Then, when the charge is made in December, debit the appropriate expense account and credit the liability account. When the credit card bill is paid in January debit the liability account and credit the checking account.

[NeilZ]

I would recommend that you set up a liability account for the credit card charges. Then, when the charge is made in December, debit the appropriate expense account and credit the liability account. When the credit card bill is paid in January debit the liability account and credit the checking account.

Just a comment:

I see what you're suggesting Matt. In this way you have the expense show up in the current year, the checking account has the money deducted, but since its placed in the liability account, it carries over to the next year. Then you're able to pay with "last" year's funds.

The only issue I see, is making sure that everyone gives a copy of the receipt to the church office, but that's a matter of training the staff/volunteers.

[kilpatrick]

Thank you!