I have been struggling with posting some credit transactions on one of my company credit card. To give you more of a contest, I have set up a PL account for each credit card holder and I have made payments from the 1240 after transferring some money over from the main bank account 1200. This ideally should work but as the credit card statements have not been paid in full (just minimum by DD was sufficient) at some point one of the card holder statement was showing a credit which reduced the amount spent in that month. This was when I started getting confused as I didn't know how and where to code this credit and how to deal with the transfer and consequently with the payment I used to do when there was a Debit in the Barclaycard supplier account (it was as if the payment made was just allocated to as specific credit card). I have then ended up with the usual transfer of £500 for the amount credited from 1200 to 1240 but having posted just the debit side of the statement (the positive small figure, not the credit balance) I don't know how to make things reconcile....
Would anyone be so kind to help me with this please?
I hope this makes sense to you but please ask if you need any more clarification.
I assume you are using Sage? You say you have set up a PL account for each credit card holder....I assume you mean a bank account as you are talking about codes 1240 etc?
The usual way to deal with credit cards is to set up the card in the 12xx range and then when items are purchased on the credit card to make a bank payment using the relevant expense account as the nominal code. This posts a debit to the expense account and a credit to the credit card, obviously leaving the credit card account with a credit balance. When the credit card is paid from the bank you do a transfer from the bank account to the credit card account which credits the bank account and debits the credit card account. If you are only paying the minimum amount off the credit card, it will be left with a credit balance.
Thanks for your reply. Ye, I'm using Sage Instant Accounts (I was used to Sage 200 so I'm missing some features I was used to). I get your point but for my own clarity (I thought it was clearer and better to visualize) I have set up each account holder as a supplier and paid each one with the balance on the Credit card account 1240. When £500 credit were allocated to one statement I wasn't sure how to deal with it as I had already transferred the £500 from main bank account to 1240. Maybe what you are suggesting would make things easier and avoid any misposting.
So in effect you have four different accounts involved? Bank account for payment of credit card, credit card account, supplier account and expense account. Think the way I suggested would be simpler for you