|
Overview
This utility creates automated cash basis General Journal entry for credit card charges.
Key Concepts
| • | Employees can enter Credit Card expenses into their Expense Sheets, which are then imported into the Employee Reimbursables Journal. Expense Checks are then cut to the employees which upon posting, creates a Disbursement Journal entry. Credit Card expenses do not get checks, therefore, do not end up having a Disbursement Journal entry made for them. The Disbursement Journal is used when performing Cash and Accrual financial reporting. |
| • | To recognize Credit Card expenses in Cash and Accrual Reporting, the Credit Card Cash Posting utility creates a General Journal entry (flagged as 'Both') that "posts" credit card entries. General Journal entries flagged as 'Both' will have no adverse effect in the system. |
| • | The ability to mark the entry as 'Cash' is there because many companies run their books on both cash and accrual. They may operate on an accrual basis, but report taxes on a cash basis. This is why the General Journal gives you the choice to mark an entry as Cash, Accrual or Both. For instance, a bank balance should be the same whether it is on cash basis or accrual basis. Therefore, General Journal entries effecting the bank account should be marked both. Year end closings, however would be either cash only or accrual only. That is why when running the system on both cash and accrual basis you close the year twice; once for cash and once on accrual. |
| • | To use this utility, you need to enable the “Separate Credit Card Charges on Expense Sheet Import” option located at Global Settings>A/P Tab>Credit Cards and Cash Basis Section. When this option is enabled the import of an expense sheet can potentially result in two employee reimbursable transactions; one for lines that are flagged as Credit Card and one that is not. |
Additional Toolbar Options
Aside from the standard toolbar options this applet has the following options:
|