Credit Card

[art-nlcf]

Using V10 with Windows XP Pro. I've been using PCP for several years and have found the forums an excellant source of information, but on this the more I research the more confused i"ve gotten. I would like to be able to enter the invoices that we get charged to our credit card, and be able to check the total with the bill when it comes. I see where you post them in accts. payable maintain open invoice, but we only run manual checks. How would I be able to clear out the invoices if I enter them that way? Thanks for any info in advance.

[Matt]

One way you can accomplish what you are trying to do is enter manual checks for the credit card charges rather than invoices. Debit an expense account and credit a liability account when inputting the charges. When you make the payment debit the liability account and credit your checking account. Then, I have found that you can use the bank reconciliation feature in the program to reconcile what you have recorded in PC+ for that liability account against what's on the credit card statement. The only difference is that when inputting the ending credit card statement balance on the reconciliation input it as a negative amount. The reconciliation will balance as long as you pay off the entire balance each month.

[fcpendleton]

I HAVE A QUESTION IN REGARDS TO THIS METHOD OF TRACKING CREDIT CARD TRANSACTIONS. AT THE TIME OF PAYMENT I WRITE A MANUAL CHECK TO PAY OFF THE AMOUNT EACH MONTH, HOWEVER I HAVE ONE CHECKING ACCOUNT WITH SEVERAL FUND ACCOUNTS ATTACHED TO IT. I NEED TO SHOW THE AMOUNTS COMING FROM VARIOUS FUNDS TO EQUAL THE TOTAL FOR THE CHECK, HOW DO I DO THIS.

[Zorak]

With multiple sets of debits and credits in that manual check entry.

You would credit the 01- checking account for the amount of the payment that comes from there, debiting each of the expenses in the 01 fund for their individual amounts, then move on to fund 02, 03, etc. until you have made it through the full list of funds and your debits and credits balance with the amount of the check.

There is no limit to the number of detail lines (debits and credits) that a single transaction can have.

[fcpendleton]

thanks for the quick response and the help
I know this sounds week, just need assurance I did this right
The credit card has transactions from both June and July
I created a transaction for June listing all the expenses and crediting the Credit Card Liability account
Same for July
Then I did a manual check which debited the Liability account and credited the individual checking accounts till it balanced
hope that was right?

[fcpendleton]

thanks for the quick response and the help
I know this sounds week, just need assurance I did this right
The credit card has transactions from both June and July
I created a transaction for June listing all the expenses and crediting the Credit Card Liability account
Same for July
Then I did a manual check which debited the Liability account and credited the individual checking accounts till it balanced
hope that was right?

[bookkeeper-sheila]

Sounds like you did it right, if I follow you...

In the end, the liability should equal zero, with the expenses in their proper postings, and the money out of the proper bank accounts.

I usually make a rough "money trail" making sure the final in/out is correct, with the interim account (liability) at zero by the end of the whole transaction.

Hope this helps!