GP–Posting Invoices to a Credit Card Vendor
Do you pay Vendor Invoices with a Credit Card?
Do you have employees that use a company Credit Card to pay for Business Expenses?
You want to track Purchase History for the Vendor, however also need to track that it was paid with a Credit Card and then reconcile those invoices when paying your Credit Card Vendor?
Dynamics GP has a procedure to do this and it makes this very convenient. I just showed one of our customers how to use this feature. I put this together so they would have something to reference.
First: If you haven’t already, create a record for your Credit Card Vendor in Vendor Maintenance.
Purchasing >> Cards >> Vendor
Here is an example of a VISA vendor, you can fill in any additional information you have for this vendor.
Second: Once this Vendor record has been created, you need to set them up as a Credit Card Vendor.
Administration >> Company >> Credit Cards
The Credit Card Name can be as simple as VISA, or if you have multiple cards could be VISAxxxx where the (xxxx) is the last 4 digits of the card, or VISAname for some part of the name associated with the credit card. You only want to create one Card Name for each Vendor. Just as you will only create one Vendor for each credit card that you will pay.
For your Companies Credit cards, mark Used by Company and select the Vendor that you will use for paying the Invoices for the Credit Card Vendor.
There are 3 types of invoices you might need to record to your credit card vendor.
1 – Paying Vendor Invoices by credit card after they have already been posted. For example from a Purchase Order that has been received and invoiced.
2 – Purchase of Non-Inventory items (such as office supplies). You want to track how much you purchase from this Vendor, however you pay them with your credit card. Examples: Office Depot, Staples, Fast Signs, etc.
3- One time transactions, items that you have no need to track Purchasing History. Examples: An employee uses a company credit card and turns in expense receipts where they used the credit card for meals, parking, and fuel during travel. You will see these items on the VISA bill but don’t need to create a Vendor for each item.
Example 1: Paying Vendor Invoice by credit card after they have already been posted.
You have a Purchase Order (Example: PO2075 – Vendor CARLSONS0001)
You receive the Inventory and Post the invoice.
When you Receive and Invoice the PO the Distribution Entry will go to:
Inventory – Debit
Purchase Price Variance Debit/Credit (If any)
Accounts Payable – Credit
You pay the invoice with a Credit Card, so now you need to record that payment as a Manual Payment.
Purchasing >> Transactions >> Manual Payments
Enter the date for Credit Card Processing
Choose the Vendor
Payment Method: Credit Card and select the Credit Card used.
For Document Number, use something that will help you identify this item when reconciling your Credit Card Statement.
Specify the Amount paid and make any Comment (optional). This will show as the Transaction Description for the payment in Inquiry.
Click the Apply button and choose the Invoice(s) paid with this Credit Card Transaction. Click OK.
If you click the Distribution button, you will see that this will record Cash for the payment against the invoice as a Credit, however the account will be the Accounts Payable account connected to the Credit Card Vendor. Then the PAY distribution is a Debit to Accounts Payable for the original Invoice for CARLSONS0001.
After Posting this will show the CARLSONS001 invoice as Paid and a new Open Invoice for vendor VISA000.
Purchasing >> Inquiry >> Transactions by Vendor
Note how the Voucher/Payment Number displays. What you use when posting the Manual Payment will help you when reconciling the Credit Card Statement for payment.
When viewing Payables Inquiry for CARLSONS0001 history transactions, you will see the Transaction Description (any comment entered) from Manual Payment Entry helps identify that this PMT transaction was a VISA payment.
Example 2 – Purchase of Non-Inventory items
You purchase office supplies from OFFICESP0001 – Office Specialists
This is not processed using a Purchase Order (Could be something you order online or go to the store to purchase).
You now need to record this Invoice. This will be posted to OFFICESP0001 because you want to track the purchases, either for 1099 purposes, or because you want to track how much you spend with this vendor.
Purchasing >> Transactions >> Transaction Entry
Choose the Vendor OFFICESP0001, enter a Document Number. I used the date in the format YYMMDD.
Shipping Method and Tax Schedule can be modified if needed.
Enter the Amount of the Purchase, then enter the amount in the Credit Card field.
When you tab off that field, a new window will open where you can choose the Credit Card.
- You can also modify the Receipt Number – This will display on the VISA00 record and should be changed to assist with matching the VISA statement for reconciling.
- Date (this should be the actual transaction date)
- Payment Number can also be modified
Note: The Receipt Number was changed to 140505 OFFICESP00.
This is the date in the format YYMMDD with the Vendor ID.
Another example: You could modify this to 140505OFFICE479.
Date, part of Vendor ID and last part of Store Receipt number.
Click the Distributions Button to view how the Invoice will be distributed.
The Distributions for this Invoice would be a Debit to the Expense account set up for this Vendor.
This account can be modified as needed.
The Credit shows as Type CASH, however it is going to the Accounts Payable account.
After posting the entry. View OFFICESP0001 vendor.
Purchasing >> Inquiry >> Transaction by Vendor
Note: Two entries are shown. The INV transaction and a PMT transaction.
Note the Payment number I used tells me this was a VISA payment as well as the Invoice Description showing in the Transaction Description that shows it was a purchase on VISA.
Now if I look at the Open documents for VISA000 I see the invoice I just entered to OFFICESP00 as well as the 1st invoice I entered against the PO.
Example 3- One time transactions paid with the credit card.
This are transactions that you are given a receipt for the credit card transaction. However it is not for a Vendor that you need to track, not for 1099 purposes, and it is not a Vendor that you use regularly and don’t need to add a Vendor.
These you will enter directly to the Credit Card Vendor.
Purchasing >> Transactions >> Transaction Entry
The Description will be something that will help you reconcile to the VISA statement. The Document number could be a receipt number or Date and name of person who charged. This will be On Account. The distribution will be a Debit to the Purchasing account which can be modified and a Credit to Accounts Payable.
You can enter as many Vouchers to the VISA00 Vendor as needed where you need to be able to reconcile to the Credit Card Statement without needing to see History on another Vendor account.
After posting this transaction I can look at the Vendor Transaction Inquiry again to see the new invoice I just posted.
When selecting Vouchers to pay I have added a column to include the Document Number to assist
in reconciling to the Credit Card Statement.
Please contact us if you have any questions about setting up your Credit Card Vendors, or how to enter transactions for the Credit Card Vendor. firstname.lastname@example.org