Recording Credit Card Expenditure
Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.
The Credit Card ledger enables the amount owed to the credit card company to be held within the balance sheet as a liability until the payment is made. The individual credit card expenses need to be recorded. These can be entered on an individual basis or entered once the credit card statement arrives.
When you have transactions for expenditure on a credit card, the payment to the credit card company that is displayed on the bank statement needs to be added to the software.
In IRIS Financials you can add a transaction to record the details of a credit card payment using a document input form. Once entered, the payment can then be reconciled against an existing or future document/transaction (such as a supplier invoice, credit note, etc.)
Recording credit card transactions consists of the following steps:
Selecting the Required Payment Document Input Form
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Select Documents, then select Document Input from the menu.
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The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select
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Next, to select the document input form required for the type of payment you are recording select Drill (...) in Input form, then double-select to select
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The Date defaults to the date that you are entering the information, i.e. today's date. The date must be the same date as the date of the payment was made using the credit card. To change the date, select the Date drop-down arrow and select the required date from the calendar. Alternatively you can, select the up-down buttons, or overwrite the date using a DD Month YYYY format, for example, 22 January 2021.
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The Period defaults to the current accounting period. The document period needs to be the accounting period in which the payment was made. If the required accounting period is now closed and no longer available, select the next open accounting period by selecting Drill (...) in Period. Double-select to select the required period from the Select a period dialog.
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Select OK to confirm your selections. The applicable document input form is then displayed.
Recording the Payment
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The Credit Card Expense document input form is displayed populated with the details entered in the Document Input dialog.
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Firstly, enter the details of the credit card used to make the payment. Double-select in
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The Document Date defaults to the date entered in the Document Input dialog. The date must be the same as the date the expense payment was made on the credit card. If required, you can change the date by selecting the Document Date drop-down arrow, then selecting the required date from the calendar.
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Enter a description to help identify the purpose of the credit card payment in Description. In the following example, Staff Room Supplies, has been entered.
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Enter the value of the credit card transaction in Document Control. This amount must exactly match the amount that of the credit card expense on the statement. In the following example, the amount is 500.00 (do not enter any currency symbols i.e. £, $, etc.)
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Next, add the item details for the payment. Double-select in Nominal, then double-select to select the required nominal from the Select a nominal dialog.
If recording the payment of a supplier invoice by credit card, select the -
Next, select the account to which the payment relates. Double-select in Account, then double-select to select the required account from the Select account dialog.
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Next, enter the total amount for the payment in Gross Value, for example, 200.00 (do not enter any currency symbols i.e. £, $, etc.)
If the credit card expense is inclusive of VAT then the amount entered in Gross Value should be excluding VAT. The Net value is automatically calculated when the applicable VAT Rate is selected. -
To select the applicable VAT rate for the payment, double-select VAT Rate, then double-select to select the required VAT rate from the Select VATRATES key dialog.
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Enter a description to help identify the purpose of the credit card expense in Description, e.g. Staff Kitchen Supplies.
If you need to provide a more detailed description for the payment, press and hold the Ctrl key and the F8 key. The Detail Line 1 Comment dialog is displayed, as shown in the following graphic. Enter the details you want to include in the item description, then select Date Stamp to add the user details, time, and date to your comment, then select OK to save your comment.
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If this payment relates to a supplier e.g. a supplier invoice, enter the supplier VAT number in Supplier VAT Number.
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If the payment details being entered are for a prepayment, enter a Prepayment Start Date and a Prepayment End Date. Select in Prepayment Start Date and Prepayment End Date to enter the dates. Dates need to be entered in dd/mm/yyyy format, for example, 08/01/2021. If entering a payment for a prepayment, make sure the applicable prepayment accounting periods are open before completing the input form. For more information please see Processing Prepayments.
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If the payment covers several items/payments (for example, staff kitchen supplies and a catered lunch) you need to insert an additional payment row to the document input form for each item. To create a new item line, select into the blank space adjacent to Prepayment End Date, then press the Tab key, or select INSERT ROW. Complete the details of the inserted payment row as described in steps 6 - 12.
If you insert a payment row that is not required, select anywhere in the payment row to be removed, then select DELETE ROW.
If the new inserted payment row is to be coded to the same nominal and account as the previous payment row, enter a Period (full stop .) in the column on the inserted payment row, then press the Tab key. The information in the previous payment row is copied to the inserted payment row. -
If the Document Control and Gross Total do not match, the Gross Total Does Not Match Document Control message is displayed in red in the bottom left-hand corner of the window,
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To correct the error, check that the Gross Total is the same as the amount in Document Control. If these are different you need to make sure that the correct individual amounts and that all items of the payment have been entered. Also check that the correct VAT rate has been selected. When the Gross Total and Document Control equal the same amount, the Gross Total Does Not Match Document Control message is removed.
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When all the required payment information has been entered, press F5 or select POST to post the payment.
If you want to allocate the payment after posting, select ALLOCATE to enable the allocation function before selecting POST, as displayed in the following graphic, to display the Allocation window (Alternatively, press and hold Shift, and press F5 when posting). For more information, please see Allocating and Unallocating Documents. -
A blank document input form is displayed with the posted document displayed in Documents Posted. Enter the details for an additional credit card or select X to close the document input form.
To view, edit, or cancel the posted transaction, select the link to the required document from Documents Posted. For more information, please see Document Enquiry Functions.
Viewing Credit Card Balances