In order to take advantage of points programs offered by some credit card companies, dealerships are wishing to pay more and more of their bills with their credit cards. However, because of 1099 reporting, distribution must still be tracked to the original vendor.
Below are steps outlining how to accomplish this. In this example, VISA will represent the credit card company, and an electric bill to Boyd's Electric for $100 will be paid.
Before using this method, you must create a separate bank account to hold all vouchers paid to VISA. This bank account will need to be added to SPECACCT under Special Account Keyword BANK.
Voucher 1 to actual vendor
Key a voucher using the BOYD'S ELECTRIC vendor for the amount of $100
Ensure the VISA bank account is used and distribute the $100 to the Electric Expense G/L account.
During the A/P update, the following entries will be made to the G/L:
DR $100 to Electric Expense
CR $100 to A/P
When the voucher is to be paid with VISA, put a rapid remittance check on it through Adjust Outstanding.
During the rapid remittance check run, the following entries will be made to the G/L:
DR $100 to A/P
CR $100 to VISA Bank
Voucher 2 to special credit card vendor
To move the amount to the VISA vendor, key another voucher for the amount of $100
Ensure the regular bank account is used and distribute the $100 to the VISA bank account
During the A/P update, the following entries will be made to the G/L:
DR $100 to VISA Bank
CR $100 to A/P
When the VISA bill comes in, issue a cheque to VISA using the VISA vendor.
During the cheque run, the following entries will be made to the G/L:
DR $100 to A/P
CR $100 to the regular bank account
Therefore, the net effect on the G/L is:
DR $100 to Electric Expense
CR $100 to Regular Bank