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  #1  
Old 07-19-2017, 12:54 PM
Froid Froid is offline
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Credit card charge accounting - anybody do it this way?

We use QB Enterprise. Presently five months into my controller job. Learning new stuff daily. Extremely useful forum here.

My company uses about a dozen Mastercards, distributed amongst key staff. Their individual charges funnel thru a master bill that we eventually pay via A/P. Each cardholder creates a monthly expense report with attached receipts to support their activity. Each expense report requires approval by a superior and accounting reviews and codes out.

We created individual G/L balance sheet accounts under 'Type' as 'Credit Card.' Each account corresponds to each cardholder. My A/P staff enters each cardholder expense report using 'Banking' and 'Enter Credit Card Charges.' This gets the charges into the proper G/L accounts.

The A/P staff then enters the master bill (this often gets entered and paid prior to all the expense reports), coding to each cardholder G/L account. This shows as a debit to the various liability accounts, until zeroing-out with a match-off from the individual cardholder entries.

My staff previously entered each card charge, populating with a specific date and using the 'purchased from' field. You can imagine how cumbersome this could be if somebody made a hundred charges during the month. Everything from Taco Bell to Hertz. A couple months ago, I directed him to alter this practice to use the Memo field, instead. For example, he might input "Hertz rental 6/1-6/5 FL trip."

Another problem was that he used actual vendors, rather than using 'Other Names' within QB. (My entire staff did the same thing with J/E accruals - using actual vendors - instead of 'Other Names,' but that's a whole other problem.) This led to a mish-mash of credit card activity and J/E activity listed in assorted vendors' transactions.

Do other users utilize 'Other Names' or do you simply grab the vendor acct? Or do you enter good descriptions in the Memo field? And do you enter individual expense reports, or code out from the master listing as one giant A/P entry?

Looking for a best practice here. And just discovered this 'Other Names' thing this morning. Apologies for the long post. No hurry on responses.

Fred aka Froid
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  #2  
Old 07-19-2017, 06:28 PM
uniz uniz is offline
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there are several of solutions for your business
first of all: expense report. There are several solutions such as Expensify, Concur that makes the cardholder do all the work for you: each cardholder will have their own Expensify account that ties to their credit card. They will do their expense report either on the phone or computer. They will take pictures of the receipts, select the expense type and submit it to the administrator. The administrator will then review, reclassify expense account if it's not selected appropriate, approve and export these reports to Quickbooks. The beautiful feature is exporting to QB. Your staff doesn't need to enter anything.
Checkout Expensify.com or Concur.com to find out more. They have demos that you can understand more what I say.

Ok, let say: you don't want to use Expensify or Concur for the expense report. Then the Bank Feed in Quickbooks might be another solution.
First, you need to download credit card transactions from the bank. If your credit card issuer allows you to download transactions and import to Quickbooks (usually, the file has extension *.qbo). That's great. If not, try to download these transactions in a CSV file. Then you will need to buy small tool called CSV2QBO
https://www.propersoft.net/import-into-quickbooks. This tool will convert the CSV file to QBO file, then you will import the QBO file to Quickbooks.
That QBO file is then used with the Bank Feed. The Bank Feed will import all the transactions from that QBO files. You will need to select the Payor name, and expense account. You can setup rules for the bank feed which will accelerate the entering process.
For example, you can setup a rule like this: When the Payor is Mc Donald, please select Meal as the expense. Then next time, the bank fee will automatically select that account for you.

you can PM me if you need.

Last edited by uniz; 07-19-2017 at 06:46 PM.
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Old 07-20-2017, 04:54 AM
Rustler Rustler is offline
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I am by no means suggesting this is a best practice type of thing,but

I create generic vendors, food, lodging, fuel, etc and use those, the memo block might say BW Tulsa, or Marriott Dallas

For sub credit cards, that is how I set it all up, ie (all are credit card type accounts)

Cap one, venture
>> Sally S. 4432
>> Bob T. 4437
etc

the 4 digits are the last four of the card number assigned to them

I use enter CC charges for each person charges, nothing posts to the parent account, it is a summing account

the monthly recon is done on the parent account.

I never use a/p to pay a credit card bill, I just schedule the online bill payment and enter it using write checks as an EFT with a future date.

A CC is a liability, I see non reason to create a liability (a/p) to pay a liability.
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Old 07-20-2017, 10:39 AM
Froid Froid is offline
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Awesome suggestions & ideas!

That's what I dig about this site! You people are boss!
Anything that makes life both easier and better.
Too often we work much harder than necessary.
Great ideas from this site that allow me to keep improving things at my job.
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  #5  
Old 01-05-2018, 11:17 AM
ssm0006 ssm0006 is offline
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Quote:
Originally Posted by Rustler View Post
I am by no means suggesting this is a best practice type of thing,but

I create generic vendors, food, lodging, fuel, etc and use those, the memo block might say BW Tulsa, or Marriott Dallas

For sub credit cards, that is how I set it all up, ie (all are credit card type accounts)

Cap one, venture
>> Sally S. 4432
>> Bob T. 4437
etc

the 4 digits are the last four of the card number assigned to them

I use enter CC charges for each person charges, nothing posts to the parent account, it is a summing account

the monthly recon is done on the parent account.

I never use a/p to pay a credit card bill, I just schedule the online bill payment and enter it using write checks as an EFT with a future date.

A CC is a liability, I see non reason to create a liability (a/p) to pay a liability.
I guess I'm really old school. I prefer my Subledger, the A/P Aging Report, to show everything I have coming due that is going to need CASH. What makes a CC BILL different then an Electrical bill or Home Depot BILL? It's still a BILL and it has a Due Date. I like to have all my payables show up on a single manageable report so that we do not forget to pay that BILL or fail to transfer enough cash to cover it. That's one of the main purposes of the AP Aging report...to manage payment of BILLS. That means I'll have that CC Bill entered and it will DR the CC Liability account. Now when I import the transactions from my CC company it will MATCH to that payment. Indeed, with my preferred system, even with a car loan you could enter all of the coupon payments notices at one time as long as you change the entry and due date each time and it will not mess up your AP aging since that's a date specific report. We do that already. It saves a lot of oh-ohs. http://www.sophisticatededge.com/acc...ble-aging.html

Last edited by ssm0006; 01-05-2018 at 11:20 AM.
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  #6  
Old 01-06-2018, 05:38 AM
Rustler Rustler is offline
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ssm0006

I understand what you are saying.

I didn't say my way was the best. In my explanation, when I get the statement, I recon the account - then I use online bill pay to schedule the payment and enter that future dated check in the bank account.

So there is no aging to worry about, I do not have to monitor whether the CC bill was paid or not. And due to the way QB presents the balance of the checking account on the home screen, the balance shown includes future dated entries, so watching the balance in the operating account is easy, no report needed.

What ever works, QB is a tool and there is often different ways to drive the nail home.
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  #7  
Old 01-06-2018, 04:43 PM
Lorin Browning Lorin Browning is offline
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Like ssm0006, I am also "old school".

I got my accounting license from the state 28 years ago. My emphasis has been on accounting and tax preparation, rather than on bookkeeping. I tend to approach QuickBooks from what an accountant would do or what a tax preparer would want, rather than from what a bookkeeper finds easiest do in QuickBooks.

In other words, I tend to approach QuickBooks questions not simply as how to do some thing in QuickBooks, but how to produce records that are consistent with GAAP or with income tax returns. But as I have said several times on this forum, there are often multiple ways to do something in QuickBooks.
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