Importing credit card transactions as accounts payable
It would be very useful to have the option to import credit card purchases as AP lines instead of cash disbursements. This would provide an audit trail from the purchases to the payable which is necessary for our organization.
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Many of our transactions actually end up being put in as APs well before we reconcile our credit card statements and import transactions (because some require Purchase Orders). Because of that we constantly have to double check to make sure that we do not import transactions that are already in the system as APs.
Also see here: https://accountingseed.zendesk.com/hc/en-us/articles/220612767?page=1#comment_208121747
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A workaround I have used for this is to create a "Paid by Credit Card" GL Account to use as a clearing account. The GL Account is marked as a Bank Account and should be a balance sheet, liability account.
When you pay the AP record with a credit card, you specify the "Paid by Credit Card" account as the bank account for the Cash Disbursement. And then when you import your credit card transactions, any transaction that was made to pay an AP is coded to the same "Paid by Credit Card" account.
It means you don't have to be so careful not to import transactions you've already booked manually when you're importing credit card transactions. You can just go back and recode them if you miss it when you initially import the transactions. You can even store the "Paid by Credit Card" account as the default Expense Account for vendors you always pay by credit card.
The balance of the "Paid by Credit Card" account should be 0 once all credit card transactions are imported.
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Unfortunately, with all the suggestions given, I am not able to get it done. I have setup a liability account Credit Card Payables and checked the "bank" box. I enter an invoice for something that will be paid with the credit card in a few weeks. When I post this invoice as AP, I can only post it against the "regular" Accounts Payables. It is not possible to post it against the Credit Card Payables account. Another issue that I have is that it prevents me from setting up a cash disbursement from my regular bank account to the Credit Card Payables GL Account: error message that GL Accounts with "Bank" checked are not allowed. Can someone please help me out here?
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Hi Paul,
When you enter that vendor invoice in as a payable, it will hit your accounts payable liability GL account. You can then pay that payable and select your credit card liability GL account in the payment screen.
When you are paying down your credit card from your bank account, it is best to record this as a journal entry instead of a cash disbursement.
Thank you,
Ryan
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Hello Ryan,
Thank you for your response. Unfortunately the first step already fails for me. When I post the invoice, I can only post it against the default GL Account Accounts Payable Trade. I can not post it against the Credit Card Payable GL Account. What am I doing wrong? I appreciate your help.
Best regards, Paul
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Hi Paul,
That is correct, here would be the process:
Enter in the payable and post, this will post a debit to the expenses and credit to the A/P control account.
Pay the payable and select the credit card liability GL account. This will clear off the amount in the A/P control account and credit the credit card liability GL account.
The payment of the payable can happen right away or later.
Thank you,
Ryan
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Hi,
Sorry for late reply. A vendor (travel agency) use our credit card to purchase flight tickets, so we create a CD (expense advance) for each transaction done with the TC. We do also create an AP with AP lines for every transaction with the TC.
But I am not clear what should be done after this, so we can put the expense advance as a AP expense.
Thank you
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Importing Amex and other CC activity into WD was super easy - I'm not on the IT team and I was able to set them up - GL1022 and GL 1020 are the best to use for Amex months or prior day calls into Workday...not sure how Accounting Seed is this far behind if they don't have it yet. You can bring in the date of purchase, vendor, Arline ticket # and departure and destination airport codes, vendor reference fields and merchant categorization from Amex...which is sometimes a little vague. The data pulls in from Amex based on the last 4 digits of the card holder, which you can set up in the expense module - not sure if Accounting Seed has an expense report module? The transactions show up for the cardholder to complete in a report, add receipt images ( PNG, JPEG PDF) and then submit the report to a manager or payables for review and approval.
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The configuration for the import can be set up for Company Billed-Employee pay or Company Billed-Company Paid.
want to discuss further? jmaiolo@gedlawyers.com
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