PSA L&P - Credit Cards: How to set up and use credit cards

How to set up and use credit cards

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 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 screen to enter all of the transactions paid for by credit card. When using the Credit Card screen, you can assign the vendor where the item/service was purchased.

This article will show you how to do the following:

Create a Liability Account for the Credit Card
How to enter Credit Card Transactions
Pay the Credit Card Bill

You may also be interested in the Help File Article: Credit Card Reconciliation

Create a Liability Account for the Credit Card. If you have multiple credit cards held by multiple staff members, create one liability account per credit card. Click the checkbox for Credit Card (as shown below) to indicate that this Liability Account is a Credit Card; The system will then make this account available in the Account drop-down on the Credit Card screen. Click Submit to save the new/updated Account. If you belong to a diocese, you may need to add the account or sub-accounts from the chart they have provided.

How to enter Credit Card Transactions

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.

On the Ledger and Payables ribbon, click the Credit Card option:

Click the drop-down for Account and select the appropriate Credit Card for the charge you are entering.

Select the Vendor, enter the transaction date, and the appropriate Expense, Dedicated, or Liability Account for the items purchased. Enter a comment if desired. Click Submit to save the Credit Card charge to the selected vendor.

You can either click the New Charge button to enter another transaction or navigate to another page or simply click Cancel if you are done entering credit card transactions.

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

Pay the Credit Card Bill

Note: The bill date must be AFTER the statement date

After entering all of the Credit Card transactions for the current month, you should be ready to pay the credit card bill. Click on the Bills icon and create a new bill to your Credit Card Vendor. Use the credit card Liability Account as the line item to reduce the Liability created when charges were entered. You can either write a check to pay the bill or use the Assign Check Number link to enter a manual check number. If you are on an accrual basis, when you enter the bill to pay the credit card company, the bill date must be AFTER the statement date. If the statement received on 7/28/2017 had a statement date of 7/22/2017, the bill date could be 7/23/2017 or 7/28/2017, whichever you would like. If the bill date is on or before the statement date, your Credit Card Reconciliation Balance will be thrown off.