Credit Card Setup - Using the QuickStart feature to create a new company will create the Sub-Table, Account, and Journal.

1. Sub-Table (CCNUM) for Credit Cards. Select the following tabs to show:
   • Active dates (ability to make inactive if CC is canceled)
   • Documents (ability to scan in contact information for the CC)
     NOTE: THE SUB-TABLE MUST BE NAMED CCNUM FOR THIS PROCESS TO WORK CORRECTLY.
2. Acct #1997 – Credit Card Clearing Acct with CCNUM as the Sub-Table.
3. Journal # 73 for Credit Card Clearing entries
4. Edit Company Options for Credit Card
   (GL #80 > Company > Accounts Payable > AP Entry 2 tab.)
   • Enter CC Clearing Account # – 1997
   • Enter CC Clearing Journal # - 73
     
5. Set up Credit Card Bank Codes (General Ledger module > Bank Account Maintenance)
   • Enter Bank Code - must be 4 characters (suggest last 4 digits of cc account)
   • Select Credit Card as the Account Type
   • Enter the description of the credit card.
     NOTE: Bank codes for Credit Cards are automatically added as Sub-Accounts in Sub-Table CCNUM.
     
6. Set Vendors
   • Optional - Set up a Miscellaneous Credit Card Vendor (CCMISC)
     Used for miscellaneous vendors on the credit card statement that you do not want to track through Sub-Account Maintenance.
   • Vendors you may want to track charges (i.e. Office Supplies)
   • Your Credit Card vendors (i.e., Mastercard, Visa, etc).
     Tip: For your Credit Card vendors, set the Default expense account to the credit card clearing account number. (#1997)

Credit Card Receipt Entry – Entering Credit Card receipts for charged purchases (daily transactions) under the Handwritten Checks/Drafts menu. Credit Card Receipts can be entered in as they are charged or all at once prior to recording the credit card statement.

NOTE: Paying a vendor via credit card is NOT a 1099 event. It is the responsibility of the credit card company to send a 1099 to the vendor.

• The same principle for invoices applies to receipts. If you need to enter a receipt, use menu #20. If the receipt has already been entered and you just need to add the payment information, use menu #22.
• Enter the information just as you would a Handwritten check/draft EXCEPT select the Credit Card option and CC bank code for the card used in the transaction.
• You can scan the receipt when you enter it to have the detailed transaction associated with the actual image.
• Post as normal when everything is entered.
  
• Another option to record the receipt is selecting the CCMISC vendor if you do not want to track the charges by a particular vendor.

Note: The approval tab allows you to use the A/P approval feature for credit card receipts.

After it’s been posted, look in View/Trend to see the entry. There is only one side, and the Paid Date shows 12/31/1899.

The date is the system’s way of knowing this is not an Open Invoice, the odd date helps us know at a glance (along with the Bank field) that this was paid with a Credit Card.

Notice if we look at the clearing account at this point, there are no entries. That is because we won’t see any entries until we match the receipts to the statement and post the statement.

Paying invoices already in Pak Accounting with a Credit Card

If you already recorded an invoice into Pak Accounting through the normal A/P “Enter invoices to pay” screen and then you pay the invoice with a credit card (or when you entered it, you didn’t know it was paid by credit card), use Add Ck# to Updated Invoice to pay the invoice via credit card.

Select the Credit Card option, the bank code (or card you are charging), and select/highlight the line item to pay. Click on Record to update the transaction.

Open Item report

The A/P Open item report prints a separate section for Outstanding Credit Card charges. These are invoices that have been paid with a Credit Card but have not been matched to a statement. Select Display All Invoices, then in the Print Credit Card section, select one of the following: Detail by Vendor (lists the credit card information for each vendor along with a summary), Summary (lists the credit card information in summary only), None (does not display any credit card information).

Credit Card Statement – Enter the Credit Card statement (once a month). Enter CC statements through AP > #10 Enter invoices to pay.

• Enter CC statements through AP #10 Enter invoices to pay.
• Select the credit card vendor you are paying.
• Enter the total amount of the statement
• At the bottom part of the screen (G/L Coding grid), select the CC clearing account and the CC Sub-Account (bank code) that corresponds to the credit card being paid.
  
• Select the CCMatch button on the Navigation bar.
• A popup box will then show you all the receipts recorded to the Credit card account. Move to the right side of the box all transactions showing on this statement. Then select OK.
  
• Repeat the above, adding a line item for each credit card # found on this credit card statement.
• After the invoice for the credit card statement has been entered, the normal next step would be the Update/Post invoices step using Update/Post.

NOTE: If there is a need to split one of the receipts, this can be accomplished in the Credit Card Expense Match Utility. Simply right-click on the receipt that needs to be split and choose the option Split. Enter the amount to split by and click OK. See below:

Additional charges (interest) or receipts not recorded….

Any additional credit card receipts or charges on the statement can be recorded as line items at the bottom part of the Enter Invoices to Pay screen.

Let’s look in View/Trend again at our entries.

Going back to our receipt, we can see that there is another entry—the offsetting clearing entry—with the same date as our statement.

Remember before there were no entries into our clearing account? Now that we have posted our statement, we can see the entries. Entries are always made into the clearing account in pairs. So you will only see the 2 entries (from the receipt and from the statement) once you post the statement.

Partial Payments

To make a partial payment on a Credit card statement (i.e. not paying in full).

Enter the statement in total dollar amount and flag receipts using CC Match.

After Updating, use A/P > Partial Pay/Change Due Date to split out the portion to pay and pay the credit card statement through the normal A/P procedures.

In my example, I'm moving my $401.98 Master Card balance to my AMEX card.

1. Create a credit invoice to reverse out the amount associated with the old credit card and offset it to a clearing account of your choice. POST invoice.
   
2. Go into #22, add a check to the updated invoice, select all, and record this as a zero-dollar draft, Record. This will apply paid dates to all of the invoices and clear out the balance of the old credit card.
   
3. To get the balance into the new credit card, you will need to create an A/P invoice and offset it to the same clearing account as before. POST this invoice.
   

Corrections

On Receipt:

If a credit card entry was posted with the incorrect credit card, you can correct the card used to pay the invoice by going to View Trend [F4] and right-clicking on the credit card clearing entry. Then, choose Change Credit Card. If any other changes need to be made, choose Unpost Journal/Jnl Ref from the same drop-down menu. This will return the invoice to AP Handwritten Check/Drafts > 20 Enter Checks/Drafts.

On Matched Statement:

If the statement has not been paid, use A/P > Un-Update Open Inv to unpost the invoice. If it has been paid, reversing entries will be necessary.

Common Errors when Posting

When trying to post, if an error appears that the Clearing Total is not set, this indicates that the amounts are not matched using CCMatch. Go back to the statement and click on CC Match for every Credit Card Clearing line on your statement.

If an error appears that the Credit Card Clearing is off by XXXX.XX, this is an indication that the items on the statement were not completely matched. For example, if you had to match $379.46, but you only matched $51.98.