Hi,
I've read the knowledge base "How do I pay invoices with a credit card and then pay the credit card agency?" We follow this process which involves creating 2 separate Invoices and paying them out (one to the vendor and one to the credit card company). We process thousands of credit card transactions, and it is a cumbersome process.
| Entry | Debit | Credit |
| Invoice from manual check for each charge | Expense account | AP account |
| Check entries from the manual checks | AP account | Credit card liability account |
| Invoice for credit card agency | Credit card liability account | AP account |
| AP Check run | AP account | Cash account |
| CM Edit Register, credit card bank, ADDITION entry (washing entries in GL) | Credit card liability account | Credit card liability account |
An easier process could possibly eliminate the 2nd Invoice and AP Check run. Create a new CM Bank Account for the Credit Card (use a liability GL Account when setting it up).
1. Invoice to Vendor (debit expense, credit AP Account)
2. From the Credit Card "Bank" account, cut a Check to pay Invoice (Debit AP Account, Credit the Credit Card Bank Account -- which hits the liability GL account)
3. To Pay Credit Card, initiate a CM Transfer from the Bank Account to the Credit Card Bank Account (Debits the Liability account, Credits the Cash Account)
4. Reconcile the Credit Card using the CM Reconcile feature.
I figure there must be a reason for the double invoice process above (I'd lose the ability to track the credit card agency as a vendor, but a deposit register would give me all payments to the agency), but I'm not sure it would matter with how we are processing our credit cards. I'd also be using a CM Bank account to track liabilities but in my tests it seemed to work fine. Can anyone comment on something I may have missed with my single invoice process?
Thanks,
Warren
