| | Record credit card transactions |
| Description | We recommend that you create a bank account to track credit card transactions. This will also help you track spending on credit card. Some credit cards also have a bank feed. Linking your credit card to a bank feed will allow you to directly import transactions. Ensuring your transactions are always up to date. |
| Resolution | To record credit card transactions, we recommend that you: - Create a bank account to manage your business credit card. Make sure you also enter your opening balance. This is the balance of your credit card when you start entering transactions into Sage Accounting
- Optional - create a new category for credit card charges and interest, to keep them separate from other bank accounts. If you're happy to record charges and interest for all bank accounts in a single category, miss this step. Instead you can record the interest and charges when you reconcile the account
- Reconcile the credit card transactions in the bank account when you receive a statement
To create a new bank account: - From Banking, select New then Bank Account.
- For the Account Type list, choose Credit Card.
This adds a credit card icon tile to help you identify it. - Enter an account name to help you identify this as your credit card.
- Enter the remaining details if required.
- Select Save.
Enter an opening balance It's likely that you will already have an amount on your credit card. You now need to enter this as an opening balance to make sure your balances match up. Read more about how to enter an opening balance for a bank account > - Choose the Add Opening Balance link.
- Enter the balance of credit card as one of the following:
Card Balance. If the credit card has a positive opening balance. This is when you have a positive balance with your credit card company.
Overpayment. if you owe money on your credit card account. This is the most likely balance to have for a credit card. Connect to a bank feed Choose Save and Connect Bank to connect directly to your credit card account with the bank. Once connected, import transactions directly from your credit card account. This will: - save time as you no longer have to enter transactions manually
- make sure you only record transactions cleared by your bank
- make sure your credit card balance is up to date
- speed up reconciliation, we mark your imported transactions so they're ready to reconcile
Read more about bank feeds > If you haven’t already, create a new category to record the amount paid in charges and interest on your credit card. - Go to More, Business Settings then in Financial Settings, select Chart of Accounts.
- Select New Category and complete the following information:
Category Name - give the category a name such as credit card charges.
Display Name - this is just the name to show on reports and lists.
Category Code - give the category a code. If you're using our default chart of accounts, we recommend that this is between 7000 and 7999, such as 7901.
Type - choose Overheads. This is to make sure the amount appears as an expense on your profit and loss report.
VAT Rate - Choose Exempt. VAT is not applied to bank charges and interest.
Visibility - leave the defaults as selected. This just determines which transactions you can use these categories with. - Select Save.
If your credit card is not connected to a bank feed, you'll need to manually enter your credit card transactions. Look at how to import bank transactions here > For other expenses, use the Money Out option. - From Banking, open the credit card account.
- Choose New, then Money Out.
- Enter the details of the payment.
- If the payment was for several items relating to different categories, or with different VAT rates, enter these on separate lines.
Don't forget, the total value of all the separate lines must add up to the total value of the payment. - Select Save.
When you reconcile your credit card statement with Sage Accounting, if you want to record your credit card charges in a separate category, enter them as Money Out. Otherwise, you enter the charges when you reconcile. - From Banking, open the credit card account.
- Select New, Money Out.
- Enter the details of the charges or interest.
- Paid from Bank Account - choose your credit card account.
- Method - the Credit Card option is probably the most relevant.
- Date Paid.
- Category - Choose the category you have just created for credit card charges.
- VAT Rate and VAT - choose Exempt.
As you use money from another bank to pay your credit card bill, record this using the Bank Transfer option. - From Banking, choose New, then Bank Transfer.
- Enter the details of the transfer and Save. You must enter the following:
Paid from Bank Account - the bank account you paid your credit card from.
Paid into Bank Account - your credit card account.
Amount Transferred.
Date Transferred. If you've received a refund for some money on your credit card, you'll need to record this too. Record a money in refund - From Banking, open the credit card account.
- Select New, then Money In.
- Choose the Enter a refund for a purchase link.
- Enter the details of the refund.
- Select Save.
Record a money out refund - From Banking, open the credit card account
- Select New, then Money Out.
- Choose the Enter a refund for a sale link.
- Enter the details of the refund.
- Select Save.
[BCB:299:UKI - Personal content block - Dane:ECB][BCB:300:UKI - Search override - Start UK:ECB][BCB:276:UKI - hide back button:ECB]
|
|