CMS Fund Accounting - How To Enter Credit Card Transactions In Ledger & Payables

Many churches will attempt to enter their credit card transactions in a single bill after they get the credit card statement in the mail.  Depending on the number of credit card transactions you may have, this single bill can get quite long; and you are unable to assign the bill to the correct vendor where the item/service was originally purchased.

There is another option! 

You can use the Credit Card Transaction Entry to enter all of the transactions paid for by credit card.  When using the the Credit Card Entry process, you assign the vendor where the item/service was purchased.  These transactions will then be included on the 1099 form at the end of the year for non-incorporated vendors.

You can also reconcile the credit card statement at the end of each month to verify you've entered all of the transactions; and paying the credit card bill is simplified, as you will use the credit card liabilty account on the bill entry display.

From CMS Ledger & Payables, click Entry | Account Entry.

Create a Liability Account for the Credit Card.  If you have multiple credit cards held by mulitple staff members, create one liability account per credit card.  Click the checkbox at Credit Card to indicate that this Liability Account is a Credit Card, and the system will turn on the Credit Card Entry and Reconciliation Process for this account.  Click Close when complete.



NOTE:  We recommend that you enter the credit card transactions as you receive the receipt for the purchase, rather than waiting for the credit card statement at the end of the month, as it is more efficient (and faster in the long run!!) to enter your transactions in this manner. 

From the CMS Ledger & Payables Main Menu, click Entry | Credit Cards.

Click the up arrow at Credit Card Account and select the appropriate Credit Card for the charge you are entering.



Select the Vendor, enter the date of the transaction, and enter the appropriate Expense, Dedicated, or Liability Account for the items purchased.  Enter a comment if desired.  Pay this by by check or electronically as usual!



You can either click the New Charge button to enter another transaction or click Close if you do not have any other credit card tranasctions to enter.

Repeat this process throughout the month to enter all credit card transactions.

When you receive the credit card statement from the credit card company, you'll need to reconcile that statement to the data you've already entered in the system.

From CMS Ledger & Payables, click Process | Reconcile | Credit Cards.

Select the appropriate Credit Card Account.  Enter the date on the credit card statement and the ending balance on the credit card statement.  Set the Display Transactions option to Uncleared Transactions Only.  Click Next.



Click the checkbox next to the transactions that are recorded on the credit card statement.



Once the difference is zero, your credit card statement is reconciled!  Click the Reconciliation Report button in the upper right corner and print this report and attach it to your credit card statement.

You should now be ready to pay that credit card bill.  From Ledger & Payables, click Enter Bills and create a new bill to your Credit Card Vendor.  Use the credit card Liability Account and this will reduce your Liability!  Pay the bill as normal.
 

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