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Sometimes churches or organizations open a credit card account for the purpose of issuing individual cards to its staff for purchases. Using the Bank Accounts in Define Lists, you can set up and reconcile credit card accounts in the Financial Suite software.

Initial Setup


In General Ledger, set up the following sources, accounts, and headings:

In Define Lists:

  • Set up a Source called Credit Card Charge. Under Source Type, be sure to select Check.
  • Set up a Bank Account for the credit card. You can use the name of the card (For example, Visa).

In the Chart of Accounts:

  • Set up a Heading called Contra Asset
  • Under the Contra Asset heading, set up checking accounts for the credit card (For example, Pastor's Card, Office Card, etc.). Assign all of these to the bank account you set up in Define Lists.
  • Set up an expense account called Credit Card Finance Charges and a Liability Accounts called Credit Card Payment Wash.

Purchases


When purchasing an item with the credit card:

  • Issue a check in Accounts Payable (or General Ledger, if you do not own Accounts Payable).
  • Select the Vendor where the purchase was made.
  • Enter the invoice using the individual checking accounts (Pastor's Card, Office Card, etc.) used for the purchase and offset to the applicable budgeted expense accounts.
  • Post and pay the invoice in Accounts Payable.
  • Use the Credit Card Charge source when posting the check.

Payments


The steps for paying the credit card statement vary if you are issuing a check or paying online.

If issuing a check:

  • Enter the check in Accounts Payable or General Ledger.
  • Select the regular checking account to make the monthly statement payment and the Credit Card Vendor as Payee. This is automatically created when you add the card's bank account.
  • Select the Credit Card Payment Wash account as the expense account.

Each time a payment is made for the monthly credit card statement:

  • To reduce the individual credit card balance and appear in reconciliation, record the payment on the bank account by entering a Deposit transaction in General Ledger. Be sure to use the Credit Card Payment source (which is set up as a deposit source type).
  • Select the checking account(s) affected by the payment (debit), and offset the entry to the Credit Card Payment Wash account (credit).

If the payment was made online using the credit card website or your bank's online bill pay service:

  • Record the payment as a Bank Transfer using the Credit Card Payment source (which is set up as a Bank Transfer source type).
  • Select the checking account you made the payment from as the From/Credit account and the checking accounts that were paid as the To/Debit accounts.
  • Select the Credit Card Payment Wash account as the Offset for both.

Tip

Save the General Ledger deposit as a memorized transaction for routine monthly payments.

Reconciling


The Visa Bank account is reconciled using the Check Reconciliation option in General Ledger. Charges and payments made to the using the individual checking accounts display under the Bank Account.

When reconciling, follow the same procedures used for other bank accounts, but be sure to enter the beginning and ending balances as negative amounts since they represent money owed, not money in the bank.

The Charges (checks) display under Withdrawals and Payments (deposits) display under Deposits. Enter any finance charges on the Adjustments tab under the Service Charge section using the Checking account(s) as the Credit account and the Credit Card Finance account as the Debit account.