Accounts Payable Q&A: Credit Card Account in AP

March 2021    Tags: Accounts Payable

My firm uses a credit card to pay for certain things, but we’ve just been making journal entries directly into the General Ledger credit card account. Is there a better way we can record our use of the card?

AP can work in tandem with GL to treat the credit card as its own bank account for purposes of recording invoices paid by the card. You can enter the invoice into AP and set it to be paid by the credit card’s account.

To add a credit card account

1. From the File menu, point to Open and select Miscellaneous.
2. Press Ctrl+N.
3. Enter the desired Description.
4. In the GLS Accounts section, in the Cash Account # field, select the GL credit card account and click OK.
5. Press Ctrl+S.

For more information, refer to KB Article R11615, “How to Handle Credit Card Invoices in AP.”