AP Journal Credit Card Processing

Normally when an invoice is vouchered that you WILL cut a check against, the detail lines are DEBIT to EXPENSE ACCOUNTS and the total is CREDIT to A/P CONTROL...which will ultimately get relieved when you cut the check (DEBIT A/P CONTROL & CR CASH @ that the point of Check Posting).

A slightly different procedure should be used when credit cards are involved. To satisfy the necessary system mechanics for Credit Card Processing, you may wish to handle these types of invoices as follows:

1. Create the Appropriate AP Credit Card Payment GL Account(s)

Create a liability account "A/P Credit Card Payments"...do not mark it Attribute AP Control, but INSTEAD mark it with the Attribute of "BANK". If you have multiple cards, we would recommend creating multiple 'bank' GL Accounts – one for each card. Note:  Making a GL Account 'attribute' as BANK, just allows the Bank Recon programs to used to reconcile' the credit card statement(s).  

2. Purchase Orders

When creating a PO that will ultimately be paid via credit card, make sure that you reference the correct VENDOR (NOT the credit card company). Of course, the PO must have the correct GL Account distributions (expense, cost of sales, etc) and be coded to the correct W/O and/or Job.

3. Vouchering Vendor Invoices

As you voucher the invoice that is being paid by Credit Card, fill everything out as would normally be the case...
(the vendor remains the "purchase from vendor" NOT the "cc provider")...  and add one additional step to this transaction...

- Do NOT use an AP Terms associated with a DISCOUNT % when recording the entry

- In the manual check area of the A/P screen, mark the entry "CR/DR CARD". When you mark the entry as DR/CR CARD, this will basically 'pay' this entry so it does not show up on an aging report as being due.    So....if someone enters 50 charges on the cr card, the PO's shows the 'history' of where the purchases were made & for which W/O and/or JOB. 

- Fill in the GL Account with the "A/P Credit Card Payments" account that you've created and assign a check date as the date of the Credit Card transaction

- Filling in the EFT/Credit Trx Id is optional. For tracking purposes, if left blank, system will assign number of the AP Journal transaction to it when the entry is saved. You can also use the PO number or an authorization code if you don't want system to use AP Journal transaction number.   

Here will be the result of your transaction:

DEBIT detail line EXPENSE ACCOUNTS
DEBIT & CREDIT  total invoice amount to AP CONTROL (net $0.00 to AP CONTROL)
CREDIT to account A/P Credit Card Payments

4. Vouchering the Credit Card Provider Invoice

Ultimately you WILL receive an invoice from the CC provider that must be paid and you will create a separate APJ transaction for that invoice. Providing you vouchered the PO's as CR Card Trx, you would enter just 1 amount  (total statement, with no job info),  the GL Distribution would be to the exact same GL Account that we marked as  the 'BANK' account for those items that were on a PO.   

- The account referenced on the detail line for that invoice should be “A/P Credit Card Payments”

- This will DEBIT that LIABILITY, and CREDIT A/P CONTROL in preparation for an actual check to be produced to the CC Provider.

- FOR THOSE ITEMS NOT LINKED to a PO, then user would add general lines and code the $$$ difference  to the proper GL Expense Accounts and use a WO/Job, if it applies.   

5. Clearing the Credit Card Transactions

Though not necessary, you may wish to include the step of "clearing" the "Credit Card Trx Id" used against the "A/P Credit Card Payment bank account", using the Bank Reconciliation processes... as those charges show up on your CC Statements.

6. Reporting

You can print the Bank Reconciliation and or Check Register reports to see all of the PO's that were 'vouchered' as a Credit Card entry for the 'bank' (credit card) Gl Account#.   

The GL Account History Report and also be run for each 'Credit Card' gl account.

7. Credit PO’s

System now allows Credit PO’s to be recorded as DB/CR card transactions. This functionality might be used in the following scenario:

- Purchase Order created for part for a work order.
- Tech picks up part and pays with a credit card.
- PO vouchered using the CC/DB Card area and specifies the GL account.
- Part is not used and is slated for return
- Create Credit PO for part return.
- Voucher Credit PO using the CC/DB Card area and specify the GL account.

Voiding Manual Checks / EFT’s
DO NOT use the Void AP Check function to void a manual check.  Changes to AP Transactions for manual checks should be accomplished by first deleting the transaction (to remove the entire invoice/check#) and then re-entering it. The way that you would delete a manual AP Check or Credit Card entry is as follows:

1. Load the APJ entry into the viewer.  You should get a warning about the closed Period.
2. Change the Accounting Period to one that is Active.
3. Change the Effective Date to one that satisfies the selected Accounting Period.
4. Push the Delete Record button and answer Yes to the 'Delete all children' prompt.
5. Answer No to the 're-use check' question.

Note on Audit Trails: the original and reversing AP Journal trx are maintained but you will need to filter to ALL to see them.

Note on Bank Reconciliation: AP Check and Credit Card transactions deleted in this manner do NOT appear on the Bank Reconciliation when the Auto Fill Trans button is clicked.