Can anyone clarify the process of posting credit card transactions to Sage, most of which are expenses. The Director is set up as a supplier, therefore the expenses are posted as a purchase invoice then the invoice is paid via 1240 credit card account. Payment from bank to credit card is done as a bank transfer.
Are there any other postings that need to be done with regards to the credit card payments?
I always set the credit card up as bank account and post the expenses as though I were posting normal bank expenses and receipts. I use the transfer facility to pay the credit card and then reconcile the account.
Yes, this is how I have it set up through 1240. Previously, it looks like journals have been used though. How do you account for the vat on the vatable items?
The VAT would have been accounted for when the Purchase invoices were posted if that's the way it's been done. (And if they are on standard VAT accounting). If they are on cash accounting then it would have been accounted for when the payment from the credit card was made.
Thanks for your reply. Looking back the transactions have been dealt with in several different ways and I guess I just thought too much into it and totally confused myself. I understand now, I am back on track.
