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Evo-ERP and DBA Classic >> Accounting >> CHARGING PO'S TO VISA
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Message started by lynnkissinger on 06/05/03 at 13:54:43

Title: CHARGING PO'S TO VISA
Post by lynnkissinger on 06/05/03 at 13:54:43

I would like to take advantage of charging po's to a charge card, but don't want to lose the history of the actual vendor the item was purchased from. Any suggestions on how I can do this? Example: if an item is bought from ABC Co., but I issued the PO to VISA so that the AP document prints a check to VISA, how do I track how much we purchased from ABC company, or where that item was purchased from in inventory history, as the inventory file would show purchased from VISA?

Title: Re: CHARGING PO'S TO VISA
Post by Lynn_Pantic on 06/05/03 at 14:00:49

Create a GL Liability account called Credit Card - PO/AP and set it up in checking account defaults as a "Checking Account". Enter the PO and receive it to ABC Vendor. Then when entering the invoice in AP-C, enter as a COD rather than invoice and use the Credit Card PO/AP account to pay for it. This properly records the vendor purchase and payment and books a liability to pay the credit card company.

When you get your credit card statement, use the Check Register (GL-I) for the Credit Card PO/AP account to verify the charges on the statement. Then when you enter the credit card bill in AP-B, the total of those charges already processed through the PO system are posted to debit the Liability account for Credit Card PO/AP and other charges such as travel and entertainment that were not processed through the PO system are posted to the expense accounts as usual.

Title: Re: CHARGING PO'S TO VISA
Post by Joyce U. on 12/17/03 at 08:12:31

Lynn, I'm getting ready to implement this procedure for our company.
I have 2 questions:

1. When entering the purchase order items in AP-C as a COD using the Credit Card PO/AP account, do you have any suggestions on check numbers?

2. Also, will we need to reconcile these checks in the system like other checks issued from real checking accounts?

Thank you

Title: Re: CHARGING PO'S TO VISA
Post by Lynn_Pantic on 12/17/03 at 08:26:24

1. No real secret but I would choose a range of numbers different from your regular checks just so it is obvious on reports that they are from a different account.

2. It is not necessary but using the Check Reconciliation is a good way to double check the charges on the credit card bill.