Processing AP Invoices payment by Credit Card

Legacy Contributor

WIll like to know the recomended FACTS process for the payment of AP Invoices using credit cards.

thamm

Not sure if this is the recommended procedure or not, but it is the way we guide our customers.

Process credit card payments through Accounts Payable for FACTS:

Setup:

1. Setup a G/L account that will be used for credit card transactions. This account will “hold” the credit card amount until the invoice is paid. The account should be a liability, named “Credit Card Accrued Payables” (or similar)

2. Setup a bank account designated for credit cards. Use the credit card accrued G/L account.

3. In System Management Branch F/M – create a new branch and assign the newly created bank to this branch

4. Create a G/L table for credit card purchases. Enter the Credit Card Accrued Payables amount as the only expense account. This G/L table will be used in vendor record for the credit card company, not regular vendors.

5. In the vendor maintenance, create or edit the record for the credit card vendor. Use the credit card G/L table.

6. Create a Check Print Control F/M record for the credit card bank. Defaults can be used as the ‘checks’ will be printed on blank paper.


Processing:

1. Enter the invoice into PO Invoice Receipts as normal. The expense distribution accounts should be the same as any normal AP invoice

2. Print and update the PO Receipt Invoice register and then the AP document entry register. This will create an open payable on the vendor’s account. It will debit the uninvoiced receipts or expense G/L account numbers and credit the accounts payable G/L account number.

3. In A/P, select the invoices that are to be paid by credit card.

4. Print the checks (these can be printed to blank paper since they are not being sent to the vendor) Be sure to select the credit card bank

5. Print and update the payment register, once again using the credit card bank. The invoice will be shown as paid. It will debit the Accounts Payable GL account number and credit the Credit Card Accrued Payables G/L account number. At this point, the vendor account for the original vendor shows those invoices that were paid by credit card are actually paid. You have an AP accrual for the credit card bill on the general ledger in the Credit Card Accrued Payables account. This is similar to your accrual for uninvoiced receipts that you generate from PO receipts; there is an accrual in G/L but no open document amounts in the AP reports.

6. When you receive the invoice from the credit card company, enter it into Document Entry. Choose the G/L table for the Credit Card Accrued Payables account.

7. Print and update the AP Document register. This will create an open payable on the credit card company’s account. It will debit the Credit Card Accrued Payables GL account and credit the Accounts Payable GL account. Now, the Credit Card Accrued Payables GL account should have a balance of 0. The accrual is removed; it was replaced by a regular payable that appears on AP reports and in the standard AP account(s) in the G/L.

8. Process the check as normal – either with a printed check or through EFT processing. Print and update the check register. This will debit the Accounts Payable G/L account and credit the Cash G/L account.

Tammy Hamm
Softcare Computer Consulting
thamm@sccco.com

[Updated on 10/8/2012 1:26 PM]

CEB Call-20220707_120522-Meeting Recording.mp4