FirstMOBC wrote: ↑Fri Jun 24, 2022 12:51 am
Hello
We have a credit card that gave us 55 points for the first time. So the amount payable will be less than the expenses. How do you handle the $55.00 less on the cash side in Accounts Payable?
FWIW ... PCPlus online works the same for everything but printing and saving files
Anyway ... are you using a credit card liability account that you then reconcile when the bill comes in? The way I look at it is this:
When an item is returned, I then void the original manual check that expensed the ministry account, and credited the liability account, which then returns the funds to the ministry. This is a case where the item did not meet the requirements, and so on.
A rebate is different. The ministry still used the item, and the original cost is still valid. In some cases, you've already reconciled the CC account, and paid the bill. This rebate or 'points' or 'credits' usually appear on the next monthly statement. In this case I process it through Funds Accounting and DEBIT the CC liability Account, and CREDIT the ministry's expense account.
However, if this card gives a credit based on many charges, which I'm going assume goes across many ministries, then I assume the 'points' are income to the church in which case I would DEBIT the CC Liability and CREDIT the Miscellaneous INCOME account. If you don't have one of these I would create that income account.
It would show up as income on the I&E report, which it is, but will not show up in the assets as income since its not a 'tangible' asset but something that will offset the church costs when the next CC bill comes in.
Does this make sense?
This thread may help you understand the use of this system better:
viewtopic.php?f=3&t=12784#p41438