How do I process credit card transactions in Accounts Payable?

You have several options for processing payments to a credit card company:

1. Process a payment with a single expense line and fund as an administrative voucher and after paying, process journal entries to allocate the expenses and cash.
2. Process a payment with multiple expense lines summarizing the expenses by account and fund.
3. Process individual vouchers for each expense as incurred and then process a single voucher for the payment in the amount of the payment.

The advantages and disadvantages:

• Option 1: Very easy to manage, but there is no ability to report in AP on the vendor history. Expenses are accounted for on a cash basis.
• Option 2: Very easy to manage, but there is no ability to report in AP on the vendor history although there is some line item reporting available. Expenses are accounted for on a cash basis.
• Option 3: More time-consuming. Accurate Vendor History records. Accrual based accounting. Credit card payable balance maintained in the GL.

See the attached document for detailed information and examples for this process.