I have a company credit card. Every time I make a purchase on it, I keep the receipt. At month end I submit an expenses form which I enter into Sage with myself being the supplier for reimbursement. However, if the expenses item was paid by credit card, I enter that particular item as a journal against the credit card account. This means I can perform a bank transfer in Sage to clear the credit card debt.
That works great but does have a limitation which is that the particular expense is not logged against a supplier account. So if I have a printing supplier I use regularly and always pay by credit card, I don't even need a supplier record for them in Sage.
Is this a common problem?
I see 2 solutions. Either selectively log some credit card purchases as a pesonal expense and some as supplier payment (though this could get confusing). Or have 2 company credit cards - one for the company to pay suppliers. Another for a staff members expenses. But this seems overkill.
I'm not sure why you create yourself as the supplier, or is it not a company card but a personal card? However I always create a supplier, eg LLoyds TSB Credit Card and post virtually all entries fom the credit card statement in one go (Having attached the relevant receipts to the statement). If you particularly want to have a separate suppliers account for the printer say, then thats fine, I'd just write P/L (for purchase ledger) next to the item on the statement and pay this from 1240 credit card account. Then you just need to allocate the other payments. I find this the easiest way to do things personally.
Hi Kevin, there are a couple of ways this can be done. You say it's a company credit card you are using. If this is the case then I'd have a separate supplier account in your accounts for this credit card. Keep your receipts throughout the month for the items that you have paid on the credit card, then post them all as purchase invoices in effect, obviously posting the individual receipts to the relevant p & L code. Then you will have a total balance outstanding for the credit card supplier to the value of the credit card statement (hopefully !!). Then when you do your bank rec, just post the DD/SO/payment off the credit card to the supplier account. Sometimes there could be a little difference though due to timing differences, if for eg, you buy something the last day of the month, this expense needs to go through the P & L for that particular month but this wont be on your credit card statement til next month (thats my experience in some cirumstances anyway). Therefore your supplier account may always have some of these "timing difference" amounts. Sorry, just seen that I've waffled on about here. Hopefully you get what I'm saying !!
I undertand your reply. Thank you. That seems a good solution but still has a small limitation. How do you isolate a particualy supplier that you always by credit card, as even if the supplier in question had their own supplier account, their invoices would be posted to the credit card supplier account along with other credit card purchases?
Yes that sounds sensible Kev, otherwise like you said before it would get messy if you put the purchase invoices under the separate supplier account then pay them by credit card. The alterative way is (if you want to post the invoice to the supplier acount as opposed to the credit card supplier account, is post everything from the credit card statement to the credit card supplier, post your invoice to the 'other' supplier, then when it comes to your bank rec and the posting of the credit card payment, you will just be posting it to these 2 supplier accounts rather than 1. Bev
Hi Kev, Basically you've got 2 options : 1 - post everything to the credit card supplier from the credit card statement as Rob also mentioned, then when doing the bank rec with regards to the credit card payment, post the full amount to the credit card supplier. 2 - split the purchases bought from the credit card and post anything you already have as a supplier to that account then the remainder to the credit card supplier account. Then when doing the bank rec, split the payment over both of the supplier accounts (or more if you have more suppliers paid by credit card and you have posted the purchases to them).
This thread has helped me no end. thank you. I do have one question though. I took out £100 from the ATM machine using the company credit card to cover petty cash. So on my credit card statement it shows £100 ATM and £3.00 charges. (Do I eneter it as any other credit card payment? Please can you advise how and where to I enter the £100 and £3 (Im new at sage and new on this forum, so sorry if this is a stupid question)
I would post the £100 as a transfer from the credit card to the petty cash account (i.e. credit credit card and debit petty cash) and post the charges as a bank payment from the credit card account to bank charges nominal (7901 in my Sage).
Hi Pauline, it helped and I have taken your advice. Much appreciated.
just ran into another issue (so sorry for the questions)
I take AMEX payments on my internet store. invoice to customer £79.96 - checked the merchant services side and £79.96 was there howeveractual payment into my bank account £75.77
on my sage I can't put against my internet customer 'paid in full' do I raise a credit note? but I am not crediting my customer, this is the % AMEX take from me for the privilege of me having this facility.
That's basically the equivalent of commission being taken before you get the payment.
The double entry would be
Cr Sales £79.96 Dr Bank £75.77 Dr Merchant services £4.19
The sale is still £79.96 but you have the expense of the Merchant services payment.
The confusion I can see it that it is taken before you see the money but it still needs to be recorded through your books as though the payment was received in full and the Amex payment that was taken at source should be recorded as though paid by yourself as above otherwise your books won't reflect the commercial reality of the scenario.
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.