Credit Card Reconciliation

[mikenerney]

Want to start using the Credit Card Reconciliation feature. Already set up liability accounts for each of our credit cards. We want to enter each expense as they occur rather than wait until the credit card statement arrives. Still a little confused about how to actually enter the individual expenses. Is it through AP or a journal entry? If AP, how should we be keying these? Thanks.

[NeilZ]

Want to start using the Credit Card Reconciliation feature. Already set up liability accounts for each of our credit cards. We want to enter each expense as they occur rather than wait until the credit card statement arrives. Still a little confused about how to actually enter the individual expenses. Is it through AP or a journal entry? If AP, how should we be keying these? Thanks.

It would be through Accounts Payable using the Manual Check function. For the check number I use OFC-CC for the office, and CUS-CC for the custodian. If you don't need to track like that, just use something that makes sense to you that will fit.

You have to have a vendor in AP. So if you use the card for trips to Sam's Club, Lowes, etc, you should have them setup as a vendor with the Credit (bank) Account pointing to the liability account on the vendor Account Information tab. If you just want to have a generic vendor you can set that up too.

Leave the Debit (expense) Account blank.

When you enter the credit card charge (I always make sure I get the original receipt to attach to the reconciliation), select your vendor, enter the amount of the charge, the credit card liability account should show up as the first line, with the amount listed under the CREDIT column. Based on which ministry the purchase was made for, on the following line you'd select the expense account from the list that pops up when you press the F2 key with the cursor in the 'account' column.

For example, if you purchased stuff from Lowes for the custodian, you'd use the "Custodian Supplies" expense account.

When the credit card bill shows up, you'd use the same reconciliation function as you do for the checking account, just change the account number to the liability account. The procedure to reconcile is basically the same as for the bank account.

Once you're ready to pay the bill, you should have the CREDIT CARD vendor's account information setup using the bank account as the Credit account, but the LIABILITY account as the expense account. You'd then write the check as you normally would.

Does this help ?

[mikenerney]

Yes! Thanks

[mikenerney]

Neil - Another question re: setting up credit card reconciliation feature. I am trying to set up all of our house accounts (vendors that allow us to charge there and then bill us monthly) as separate liability accounts in addition to our office credit cards. I initially set them up as a level 5 account with level 6 accounts for each of the 9 house accounts we currently have. When I try to utilize the Reconcile Bank/Credit Card feature in Fund Acctg, it won't let me choose anything lower than a level 5 (won't show any sub accounts in the drop down list). Any thoughts?

[NeilZ]

Neil - Another question re: setting up credit card reconciliation feature. I am trying to set up all of our house accounts (vendors that allow us to charge there and then bill us monthly) as separate liability accounts in addition to our office credit cards. I initially set them up as a level 5 account with level 6 accounts for each of the 9 house accounts we currently have. When I try to utilize the Reconcile Bank/Credit Card feature in Fund Acctg, it won't let me choose anything lower than a level 5 (won't show any sub accounts in the drop down list). Any thoughts?

FWIW .. the card I have setup is a level 5, as is the checking account which when setup defaults to a level 5. It may be a limitation built-in to the program. Obviously the work around is to move all the levels up by 1.

I'll flag this one for the techs.

[mikenerney]

I figured that's what I would have to do. Would be great for a future release update. Thanks.

[Zorak]

Detail accounts in PowerChurch can be level 4 and higher. It would need to be a detail account to be able to hold a balance and be used in transactions.

As a test, I just added a liability account at level 4 and it showed up in the account lookup on the Reconcile Bank Accounts screen.

You can change an account's Report Level on the Maintain Chart of Accounts screen in Accounting > Fund Accounting > Setup.