Re: Credit Card Accounting

[Munroe Sollog <..hidden..>]

This doesn't seem to answer how to partially pay the bill (as one would
often do with a credit card) and then close which(?) of the various
invoices?  Good reasons for entering items separately, but the problem
comes when it's time to /pay.    /The only solutions we can think of is
to "pay" the inventory "invoices" that have been put in first, then
"pay" the rest of the balance of what you're paying AMX through the
journal entry screen to 2150.

Munroe Sollog
Systems Engineer
Digirati Consulting, Inc
..hidden..




Chris Travers wrote:
> On Thu, Oct 30, 2008 at 9:47 AM, Munroe sollog
> <..hidden..> wrote:
>   
>> Our company has a credit card, as I am sure most companies do.  I can't
>> seem to wrap my head around getting ledger to account for the credit card
>> properly.
>>
>> I created a new ledger 2150 - American express
>>
>> Now, let's say I have 25 purchases using the credit card over the month I
>> need to account for.  Do I add each one of those purchases one at a time in
>> the "Vender Transaction" interface?
>>     
>
> I would recommend this.  While you could create a generic vendor and
> aggregate, there are good reasons not to do so from a financial
> accounting perspective.  The big one is that these occur on different
> dates and so you could run into issues matching expense with income.
>
> The other is an internal process control issue.  If you are just
> entering data on the credit card statement into LedgerSMB, then I have
> to wonder how you actually know whether employees are abusing their
> use of the card.
>
>   
>>  If I am purchasing inventory I have to
>> use the "Vendor Invoice" interface, as there is no way to effect Inventory
>> otherwise.
>>     
>
> THat is correct.  Once again, you could aggregate, but it is a lot
> better over time not to do so.
>
>   
>> Furthermore, Paying the invoice using the 2150 account, there is then now
>> way to link the payment of my amex card to that same account, or at least
>> none that I can tell.  I am probably doing something wrong, and I am sure
>> my vocabulary isn't kosher.  Is this easier than I am making it out to be,
>> if so can someone enlighten me?
>>     
>
> You could set Amex up as a vendor.
>
> However, just entering a GL transaction to pay the bill is probably
> better, just like one might do with any other loan.
>
> Best Wishes,
> Chris Travers
>
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