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 Overview

If a posted invoice is paid with a credit card, you must record the payment to avoid creating a check for the invoice. To record an invoice payment by credit card, you must enter an invoice for the credit card vendor and transfer the invoice from the original purchase vendor to the credit card vendor. Payment history is recorded for both the purchase vendor and the credit card vendor. For more information, see Credit Card Transfers FAQs.

You can record the payment when entering the invoice in Accounts Payable Invoice Data Entry or when creating the invoice on the fly in Manual Check and Payment Entry.

Note You can use this procedure when the outstanding invoice references jobs. You can perform this procedure throughout the period and when processing the monthly credit card statement.

 

Use one of the following procedures to record and transfer credit card purchases:

• To record the outstanding invoice payment by credit card using A/P Invoice Data Entry

• To record the outstanding invoice payment by credit card using Manual Check and Payment Entry

 

To record the outstanding invoice payment by credit card using Invoice Data Entry

1. Select Accounts Payable Main menu > Invoice Data Entry.

2. In the Vendor No. field, enter the credit card vendor. For more information, see A/P Invoice Data Entry - Fields.

3. In the Invoice No. field, enter a new invoice number.

4. On the Header tab, enter the invoice information.

5. Click the Lines tab, and click the Transfer Information button.

6. In the Purchase Vendor Transfer window:

1. In the Vendor Number field, enter the purchase vendor number. For more information, see Purchase Vendor Transfer - Fields.

2. In the Invoice Number field, enter the purchase vendor's outstanding invoice number.

Note The G/L Account field is not available because the outstanding invoice (not the purchase) is being transferred.

3. The purchase vendor's invoice balance appears in the Transfer Amount field. Keep the amount to transfer the full balance, or enter a lower amount to transfer a partial balance.

Note The transfer amount cannot exceed the purchase vendor's invoice balance.

4. If a partial amount is entered in the Transfer Amount field and the invoice references a job number, the Job Cost Distribution Detail window appears. In the Payment Amt field, enter the amount to distribute to each job number and click OK. For more information, see Job Cost Distribution Detail - Fields.

5. In the Purchase Vendor Transfer window, in the Discount Amount field, enter the discount amount, if necessary.

6. In the 1099 Form and 1099 Box fields, select the appropriate options for your 1099 form, and click OK.

7. In the A/P Invoice Data Entry window, click Accept.

The outstanding invoice payment by credit card is recorded.

 

To record the outstanding invoice payment by credit card using Manual Check and Payment Entry

1. Select Accounts Payable Main menu > Manual Check and Payment Entry.

2. Enter the bank code and check number. For more information, see Manual Check and Payment Entry - Fields.

3. In the Vendor No. field, enter the credit card vendor number.

4. In the Check Date, Check Amount, and Comment fields, enter the check information for the credit card vendor.

5. Click the Lines tab, and then click the Create G/L Distribution button.

6. In the General Ledger Distribution window, click the Transfer Information button.

7. In the Purchase Vendor Transfer window:

1. In the Vendor Number field, enter the purchase vendor number. For more information, see Purchase Vendor Transfer - Fields.

2. In the Invoice Number field, enter the purchase vendor's outstanding invoice number.

Note The G/L Account field is not available because the outstanding invoice (not the purchase) is being transferred.

3. The purchase vendor's invoice balance appears in the Transfer Amount field. Keep the amount to transfer the full balance; enter a lower amount to transfer a partial balance.

Note The transfer amount cannot exceed the purchase vendor's invoice balance.

4. If a partial amount is entered in the Transfer Amount field and the invoice references a job number, the Job Cost Distribution Detail window appears. In the Payment Amt field, enter the amount to distribute to each job number and click OK. For more information, see Job Cost Distribution Detail - Fields.

5. In the Purchase Vendor Transfer window, in the Discount Amount field, enter the discount amount, if necessary.

6. In the 1099 Form and 1099 Box fields, select the appropriate options for your 1099 form, and click OK.

8. In the General Ledger Distribution window, click Accept.

The outstanding invoice payment by credit card is recorded.

 Example - Recording the Payment of an Outstanding Invoice by Credit Card

Using Accounts Payable Invoice Data Entry, you enter an invoice amounting to $1000.52 for vendor Office Depot (01-OfDepot). Later, you decide to pay Office Depot using your company’s Citibank Visa card. To record the payment of the Office Depot invoice by credit card, you enter an invoice to your credit card vendor (01-Citbank) and then perform an invoice transfer by selecting the outstanding Office Depot invoice in Purchase Vendor Transfer. The 1099 and payment history are updated based on the settings in Vendor Maintenance and Accounts Payable Options.