Setting up credit cards in Microsoft Office Accounting
Like all things in Microsoft Office Accounting there is more than one way of using the package. Processing credit cards is no exception. When credit card bills are received these tend to relate to a number of purchases, be it stock supplies or general expenditure. Accurately listing the individual transactions across nominal ledger codes is important for analysis. The purchases on which VAT are charged also need to be accurately recorded for the taxman.
Method 1: In order to record credit card payments select the ‘Credit card charge’ option within the ‘Banking’ menu. Then select the appropriate ‘supplier name’ (Barclaycard, American Express etc) from the drop down list. Record the ‘payment method’ being used to settle the credit card charges and select where the bill will be ‘paid from’. The next step is to itemise all the purchases which make up the credit card bill. Click the box shaped icon in the body of the form to select either a ‘product or service’ or an ‘expense’ and fill out the remaining details, for example, quantity, unit price and amount.
Itemised credit card bills can be entered line by line in the body of the ‘Credit Card Charge’ for. Note that an expense can only be recharged to specific job if you are using Microsoft Office Accounting Professional.
Method 2: An alternative way is to set up each Credit Card as a separate bank account within the system using the ‘New Bank Account’ form which is opened from the task list under the ‘Banking’ menu or from the relevant icon in the body of the Banking home page.
When a credit card statement is received you can easily analyse, enter and code the expenses and post them to the correct account and reconcile it with the statement. The balance of the credit card bank account can be ‘settled’ by transferring the amount required from your main bank account.
