User Support Forum

In reading an older forum post about how to enter & reconcile credit card accounts, I see it says to use the CC liability account instead of the checking account for the credit. If you are debiting other funds, would you still do the same process or would I need to set up a CC liability account within each fund? For example - if we have a charge for our Discretionary Fund it is currently:

Credit 05-1110-560 Discretionary asset account (checking)
Debit 05-7020-560 Discretionary expense account

For the credit card, would I then change it to be:

Credit 01-2015-000 Credit Card liability account
Debit 05-7020-560 Discretionary expense account

GEBCbookkeeper wrote:In reading an older forum post about how to enter & reconcile credit card accounts, I see it says to use the CC liability account instead of the checking account for the credit. If you are debiting other funds, would you still do the same process or would I need to set up a CC liability account within each fund? For example - if we have a charge for our Discretionary Fund it is currently:

Credit 05-1110-560 Discretionary asset account (checking)
Debit 05-7020-560 Discretionary expense account

For the credit card, would I then change it to be:

Credit 01-2015-000 Credit Card liability account
Debit 05-7020-560 Discretionary expense account

You need to add the 2015-000 liability to each fund. The reconciliation would then work as it does with a checking account used across funds. Using a transaction as you have it above would cause an out of balance issue on fund 01 and 05.

Also, you would enter this as a MANUAL CHECK through Accounts Payable, then when the credit card statement comes in you would CREDIT the checking, and DEBIT the liability account, you would have to do this for each fund so it would look like this:

Total bill 500.00. 200.00 was spend in fund 01, and 300 in fund 02

01-1110-000 CR 200.00 (checking)
01-2015-000 DB 200.00 (CC)
02-1110-000 CR 300.00 (Checking)
02-2015-000 DB 300.00 (CC)

Does this help ?

NeilZ wrote:

GEBCbookkeeper wrote:In reading an older forum post about how to enter & reconcile credit card accounts, I see it says to use the CC liability account instead of the checking account for the credit. If you are debiting other funds, would you still do the same process or would I need to set up a CC liability account within each fund? For example - if we have a charge for our Discretionary Fund it is currently:

Credit 05-1110-560 Discretionary asset account (checking)
Debit 05-7020-560 Discretionary expense account

For the credit card, would I then change it to be:

Credit 01-2015-000 Credit Card liability account
Debit 05-7020-560 Discretionary expense account

You need to add the 2015-000 liability to each fund. The reconciliation would then work as it does with a checking account used across funds. Using a transaction as you have it above would cause an out of balance issue on fund 01 and 05.

Also, you would enter this as a MANUAL CHECK through Accounts Payable, then when the credit card statement comes in you would CREDIT the checking, and DEBIT the liability account, you would have to do this for each fund so it would look like this:

Total bill 500.00. 200.00 was spend in fund 01, and 300 in fund 02

01-1110-000 CR 200.00 (checking)
01-2015-000 DB 200.00 (CC)
02-1110-000 CR 300.00 (Checking)
02-2015-000 DB 300.00 (CC)

Does this help ?

Yes, that helps! Once all the manual checks are posted, how do I get the totals for each fund to enter the payable?

GEBCbookkeeper wrote:
Yes, that helps! Once all the manual checks are posted, how do I get the totals for each fund to enter the payable?

You would take the credit card statement and do a reconciliation. Then you just pay the balance on the credit card. No need to total anything since you've already verified that you've entered all the purchases.

One thing you HAVE to do .. all users of the credit card MUST give you the receipts and you enter them as they are turned in.