Paying an AP Invoice with a Credit Card

Go To User Guide - Accounts Payable

Accounting>File>Accounts Payable>Add/Edit Payables

There are a few different ways to handle managing a credit card account for invoice payments. Three methods are outlined below.

Method 1: Credit Card Register

1. Set up check register specifically for credit card payments (See: Create a New Checking Account).
2. As accounts payable invoices are received, process them in RFMS as you normally do. Enter them directly into the Accounts Payable module if they are non-product payables or use the cost inventory procedure.
3. Pay credit card charges with the Credit Card Check Register by either printing checks to paper or by using the online payment option.
4. Reconcile the bank register as any other bank account (See: Bank Statement Parameters).
5. When the monthly credit card statement is received, post it to Accounts Payable. Code portion that had previously been marked “paid” with the credit card check register to the “Credit Card Check Register” account.
6. To ensure the correct balance in the Credit Card Check Register make a deposit to the credit card bank register for the true payment to the credit card company. Code this deposit to the Credit Card Check Register account code.

Journal Postings

1. Original Payable: Debit Inventory/Expense – Credit Accounts Payable
2. “Paying” the payable using online payment or paper check: Debit Accounts Payable – Credit the Credit Card Check Register
3. Credit Card Statement Payable: Debit Credit Card Register’s Account Code – Credit Accounts Payable
4. Pay credit card bill (through regular checking account): Debit Accounts Payable – Credit the Primary Checking Account
5. Posting Deposit to Credit Card Register (and coding to itself): This both debts and credits the Credit Card account code. This will have no impact on the general ledger; it is simply to relieve the negative credit card bank register balance.

  Note: You must post the deposit to the “Credit Card Check Register” before you close the journal for the current period. You are not able to post a deposit to a month that has been closed.

Method 2: Single Payee

1. As accounts payable invoices are received, process them in RFMS as you normally do. Enter them directly into the Accounts Payable module if they are non-product payables or use the cost inventory procedure.
2. When paying the credit card bill, go to Accounting>File>Accounts Payable>Check Writing>Flag Payables
3. Tag only the invoices that were paid on the credit card
4. Click the Printer button
5. Click F8 next to Single Payee to choose your credit card company

Method 3: Holding Account

1. As accounts payable invoices are received, process them in RFMS as you normally do. Enter them directly into the Accounts Payable module if they are non-product payables or use the cost inventory procedure.
2. After paying the bill with a credit card, post a negative payable to the same supplier for the same amount of the credit card payment.

  Note: Post the negative payable to an account other than your inventory account code. Create a new asset account that will be used as a holding account. For example, Mohawk Carpet Invoice number 555 Amount $500.00 Posted to 140 Inventory account. Mohawk Carpet Invoice number 555A Amount - $500.00 Posted to 145 a holding account.

3. Flag both the positive and the negative payable for payment.
4. Print a zero check. This will mark the payable as paid and track what happened.
5. Go to the original payable and put in a note on the payable record as to what you did.
6. When the credit card bill arrives, post it to Accounts Payable as normal. Be sure to post the amount to the new holding account that you created for inventory. This will zero out the holding account for you, and your inventory account is still in balance.