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:

1. Selecting the Required Payment Document Input Form

2. Recording the Payment

3. Viewing Credit Card Balances

Selecting the Required Payment Document Input Form

1. Select Documents, then select Document Input from the menu.
   

2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select , from the Select a document type dialog. This selection filters the list of document input forms available in the next step.
   
   

3. 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 Nominal Payment from the Select an input form dialog.
   
   

4. 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.
   

5. 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.
   
   

6. Select OK to confirm your selections. The applicable document input form is then displayed.
   

Recording the Payment

1. The Nominal Payment document input form is displayed populated with the details entered in the Document Input dialog.
   

2. Firstly, enter the details of the credit card used to make the payment. Double-select in Nominal, then double-select to select the required credit card nominal from the dialog.
   Select the Account for the credit card, then complete the details for the credit card, then POST the document. On the document input form, you can enter the details for multiple transactions made on the credit card, however the transactions recorded must all be for the same card. If transactions relate to another credit card, then a separate document input form must be completed for that credit card.You are not able to move to the next field if the required data has not be entered.

Viewing Credit Card Balances

It is possible to view outstanding balances relating to credit cards by searching on the Credit Card nominal in the Trial Balance and Ledger List reports. For more information, please see Running a Trial Balance or Producing a Ledger List.