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Credit Card Maintenance & Tracking

This Help File Page was last Modified on 04/19/2017

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Credit Card Maintenance & Tracking

This Help File Page was last Modified on 04/19/2017

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Credit Card Maintenance & Tracking

This Help File Page was last Modified on 04/19/2017

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The Credit Card Maintenance & Tracking feature provides the ability:

a.To pay a Bill using a Credit Card - by using the Credit Card Pay option that is available within the Bills Form  

b.To create an internal Bill from the Credit Card Company for a specified Amount to pay for some (or all) of those Credit Card charges, using the Create Bill option on the Credit Card Register Form

c.To maintain a running Balance of what is due to the Credit Card Companies being used by your Company to Pay those Credit Card Bills

 

Credit Card Payments for Bills are tracked within a Credit Card Maintenance & Tracking System, but require the following steps to properly implement this feature:

1.Create a Vendor Classification Code (such as "CC") to be assigned to each Vendor record that represents a Credit Card company.

 

2.Create a Vendor record for each Credit Card your Company will be using to make Credit Card Payments for Bills

 

3.For General Ledger System Users: You must create an individual Current Liabilities Credit Card Liability Account for each Credit Card:

a.Create a unique General Ledger Account (this must be a Liability Account) for each Credit Card.  

i.It will be used to track as the Credit Card Debt owed by your Company to that Credit Card Company - thereby tracking, within the General Ledger System, the Credit Card Liability ("Debt") that your Company owes to each Credit Card.

ii.In other words, this Credit Card Liability Account is used to record the "Purchases" i.e., the Debt that was charged to that Credit Card

iii.Therefore, there must be a unique Credit Card Liability Account defined for each Credit Card, and each Credit Card record must be assigned its unique General Ledger Liability Account Number

iv.One of these unique Liability Account Numbers - entered in its "GL Account (Liability)" field - will be assigned to each Purchase Category representing the Debt being charged to its associated Credit Card (see step 4., b. below).

 

4.Create a Purchase Category record for each Credit Card that will be used for this purpose and assign a Code representing that Credit Card, followed by a dash, and then the letters "PAY" (e.g., AMEX 7515-PAY)  

a.Assign the appropriate Vendor name (see step 2. above) representing that Credit Card to the Vendor field in the Inventory Info section of that Purchase Category Form

b.For General Ledger System Users:      

i.Assign the Liability Account Number" (created in step 3., a. above) to the "Purchase GL# field on the associated Credit Card Purchase Category record

ii.This will be used to track that Credit Card's Purchases (i.e., the Debt charged to that Credit Card) within the General Ledger System.

 

5.Create a Credit Card maintenance record with a unique Credit Card Name (perhaps the standard abbreviation for that type of Credit Card plus the last four digits of its Account Number)

a.In the Vendor field, using the Drop-Down Selection List provided, Choose the associated Vendor record created for this purpose (see step 2. above)

b.Optionally, you may also enter the actual full Account Number of that Credit Card

c.For General Ledger System Users: assign each Credit Card maintenance record the specific General Ledger Credit Card Liability Account Number defined for its Credit Card Debt (see step 3., a., i-iv above)

d.Assign the Purchase Category Code that was created for this specific Credit Card (see step 4. above) to the Credit Card maintenance record. (Also see step 6. below).

 

6.When entering a Credit Card maintenance record you may also create an entry that will be inserted into the associated Credit Card Register (which is automatically maintained for each Credit Card) that represents the current balance on this Credit Card; or you may set the current balance on the associated Credit Card Register to $0.00.

 

7.The Bills Form - for a Vendor who is not classified as a Credit Card Company - will have a Credit Card Pay option with a Drop-Down Selection List containing all of the established Credit Cards.

 

8.Thereafter, the Credit Card Form, and the associated Vendor record created for each Credit Card your Company uses (see step 4. above), will have a Credit Card Register Form that displays a Grid with:

a.A list of all the previously posted Payments made on Bills using to the currently selected Credit Card (or Credit Card Company);

b.A list of all Statements (entered as Bills to that Credit Card Company Vendor) for the currently selected Credit Card Company.

c.A Create Bill option which may be used to create a Bill for a specified Amount (or all) of the outstanding charges listed on a Statement received from that Credit Card Company.

d.This Bill created for that Credit Card Company may then be Paid in the normal manner to the Vendor (which was identified for that Credit Card).

e.A Check may then be printed (or an EPay payment executed) for those Credit Card Statement charges.

 

For General Ledger System Users:

A.When an Item is added to the Credit Card Register (using either the Credit Card Pay option on the Bill Form; or the Insert option on the Credit Card Register Form itself), the Amount of the charge is posted as a Debit (added) to the Accounts Payable Liability Account, and posted as a Credit (added) to the General Ledger Credit Card Liability Account defined for that purpose in the Credit Cards (maintenance) Form.

 

B.When you create a Bill using the Create Bill option within the Credit Card Register Form, the Amount of that Bill - which is being created to pay a balance owed (some or all of the Debt owed) to that Credit Card Company - is posted:

1.As a Debit (subtracted) from the General Ledger Credit Card Liability Account

This was first defined as that Credit Card's General Ledger Liability Account to track that Credit Card's Debt

That Credit Card's General Ledger Liability Account was assigned to the Sale-Purchase Item (created for that purpose as explained in Step 2., a. above)

Finally, it was assigned to the specified Credit Card record as its Payment Item

2.As a Credit (added) to the General Ledger Accounts Payable Liability Account.

 

C.When the Bill - created (in step B. above) to pay a balance owed to the Credit Card Company - is subsequently Paid (by Check, Hand Check, or EFT), that Payment Amount is posted as a Debit (subtracted) from the Accounts Payable Liability Account, and then posted as a Credit (subtracted) from the General Ledger Asset Account of the associated Bank.

 

See the Credit Card chapter for other important information.

 

Illustrated Credit Card Maintenance & Tracking Instructions:

The Credit Cards which are being used by your Company to make Payments on Bills, and the associated Charges that will appear on those Credit Card Statements, may be tracked using this Credit Card Maintenance & Tracking System.  

To implement this capability, you must complete these required steps:

a.For General Ledger System Users: Create the necessary General Ledger Accounts:

 

HelpFiles-GLAccountsCreditCardLiability

 

i.Create all of the required General Ledger Liability Accounts (e.g., AMEX Liability, MasterCard Liability, Visa USA Liability) to identify each Credit Card that will be used to Pay Bills to enable the system to track that Credit Card's Debt incurred by your Company (which will be tracked as a Current Liability)

ii.Once this General Ledger Account is assigned to the Purchase GL# field in the Credit Card's associated Purchase Category record (see step d. below), it will automatically be inserted into the Sale Items Grid

 

 

b.Create a Vendor Classification Code and Description for designating a Vendor as Credit Card Company.

 

HelpFilesVendorClassification-CreditCardPurchases

 

i.This Vendor Classification Code may then be assigned to each of those Vendors representing a Credit Card Company (created in step c. below).

 

c.Create a Vendor record (representing a Credit Card Company) for each Credit Card your Company uses for making Credit Card (see f. below) Payments on Bills.

 

HelpFilesVendorForCreditCardCompany

 

i.Assign each of these Vendor records with the Vendor Classification Code created in step b. above.

ii.Thereafter, a Bill may be created for that Vendor representing the outstanding balance on a Credit Card, which may then be Paid by Check or Electronic Transfer.

iii.This process will reimburse (make a payment to) that Credit Card Company (Vendor) for the Amount your Company had previously charged as Payments on various Bills.

 

d.Create a Purchase Category for each specific Credit Card Company that will be used for making Payments on Bills:

 

HelpFilesVendorForCreditCard&PurchaseCode

 

i.You may assign an Item ID Code representing that Credit Card Company, followed by a dash, the last four digits of its Account Number, followed by a dash, and then the letters "PAY" (e.g., MasterCard-3588-PAY) or use whatever other method deemed appropriate as long as the ID ends in "-PAY".

ii.Assign it the Purchase GL# General Ledger Liability Account Number for this Credit Card that was created (in step a, i. above) for the Credit Card Liability Account to be used for tracking the current Credit Card Debt.

iii.The Vendor Options menu for a Credit Card Vendor is different:

a.There is no Purchase Order or Recurring Purchase option listed.

b.There is a Create Credit Card Bill and a Register option instead.

 

e.Create a Credit Card maintenance record with its Name (and last four digits of its Account Number)

 

HelpFilesCreditCardsForm

 

i.Assign it to the Vendor record created for this purpose (see step c. above),

ii.Enter the actual full Account Number for the Credit Card

iii.Assign it the General Ledger Liability Account (e.g., AMEX Liability, MasterCard Liability, Visa USA Liability) representing the Credit Card's current Debt (created in step a, i. above).

iv.Assign it the Purchase Category Code ("Item ID") created for this specific Credit Card (created in step d. above).

v.You may also set the current balance for this Credit Card maintenance record when prompted to do so (or set it to $0.00).

 

f.The Bills Form for those Vendors who are not classified as a Credit Card Company, will have a Credit Card Pay Icon (see the "Credit Card Pay" discussion in the Bills - Understanding the Bills Form chapter for more information)

 

HelpFilesBillsFormCreditCardPayIcon

 

i.Use its Drop-Down Selection List of all identified Credit Cards to Choose the Credit Card Company that should be used to Pay for the currently selected Bill.

ii.The Amount Due on the Bill will be the default Payment for the Credit Card Pay Icon transaction and will be Credited (added to) the General Ledger Liability Account (e.g., "Credit Card-1234-PAY"); and that Amount will be Debited (subtracted from) the General Ledger Accounts Payable Liability Account.

iii.This Payment on the Bill - owed to that Vendor - will be recorded in the Credit Card Register Form.

 

b.Thereafter, the Credit Card Form, and the designated Vendor record created for each Credit Card that your Company uses to Pay Bills, will each provide access to the associated Credit Card Register Form

This Credit Card Register will display a Grid with:

 

HelpFilesCreditCardRegisterFormExample

Credit Card Register

 

a)A list of all the previously posted Payments made on Bills using the currently selected Credit Card (or Credit Card Company);

b)A list of all Statements (entered as Bills to the designated Credit Card Company Vendor) received from the currently selected Credit Card Company.

c)A Create Bill option (see below) to created a Bill for charges that are to be paid to the designated Credit Card Company Vendor.

 

Filter - Using the Drop-Down Selection List provided to Choose the Date Range on or after which Credit Card data is to be listed

 

HelpFilesCreditCardRegisterFormFilterDropDownList

 

Create Bill - This option on the Credit Card Register Form is used to create a Bill for the Vendor identified as a Credit Card Company - for a designated Amount.

 

HelpFilesCreditCardRegisterFormCreateBillIcon

 

oWhen this Bill is generated, that Amount will be Debited (subtracted from) the General Ledger Liability Account (e.g., AMEX Liability, MasterCard Liability, Visa USA Liability); and Credited (added to) the normal Accounts Payable Liability Account

oThis Bill can then be Paid in the normal manner using for making Payments (i.e., Auto Pay, E-Pay, or a Hand Check, but not with a Credit Card)

oWhen the Payment is created, that Amount will be Debited (subtracted from) the the normal Accounts Payable Liability Account; and Credited (subtracted from) the designated Bank''s General Ledger Asset Account

oA Check may then be printed (an Epay executed or hand check written) for that designated Amount.

 

Print - This Print Icon on the Credit Card Register Form will open a Print Preview dialog which can Print the Register data, or Export this information to a PDF file.

 

HelpFilesCreditCardRegisterPrintPreview