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• # 83698
• Tue 03 Jul 2012 06:04 PM

Hi,


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?


Many thanks        

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  Kiz
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• # 83700
• Tue 03 Jul 2012 06:36 PM

Is it a company card and are the card expenses company expenses?

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• # 83710
• Tue 03 Jul 2012 10:08 PM

Hi, yes it is a company and they are company expenses.

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  Kiz
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• # 83718
• Wed 04 Jul 2012 07:33 AM

In that case then the way I do it is to set up the credit card as a bank in sage (I use 1240) and post the expenses as bank payments using bank 1240.

Steve

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• # 83719
• Wed 04 Jul 2012 09:13 AM

Yes, I have also have the cc set up as bank code 1240. So I assume once I have made postings as bank payments through this account for any payments made I then do a bank transfer from 1200 to 1240 once we have paid the cc bill?

Then to post the transactions as the Directors expenses I should raise as a PI (as director is set up as supplier) with correct tax/nominal codes again. Then make purchase payment via 1240 when Director is paid? I just can't seem to grasp the postings twice procedure (once as PI then again as bank payments via 1240). Will this not be duplicating these transactions and their VAT?

I think that I have thought about it that much that i've confused myself! 

• 
  Kiz
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• # 83720
• Wed 04 Jul 2012 09:36 AM

Hi Kiz,

Yes you would then do the transfer from 1200 to 1240 for payment of the CC bill.

I wouldn't post a PI unless it was an actual PI from an actual supplier. If it is a company credit card you wouldn't need to pay the Director anything, as he hasn't paid out of his own pocket (assuming the CC is paid via the company bank). If it is the Directors personal CC then this would be done as expenses not CC through 1240.

For example:

Company credit card - post any payment against supplier invoice from 1240, post any CC payments not with PI straight to nominal code (i.e fuel)

Director Expenses (where he has paid cash or personal CC) - post any payment against an invoice or straight to nominal code from bank 1200 (Assuming the Director is supplying an expense form) i.e he puts and expense claim in for £300 against fuel - pay him £300 to his bank, then allocate the £300 to the fuel account via 1200.

Hope the above makes sense as I was getting a little confused with your post :)

Kerry

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
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• # 83721
• Wed 04 Jul 2012 10:28 AM

Hi Kerry,

Thanks you for your reply. I had completely confused myself and realised once i'd posted my last post where I have gone wrong. You have clarified where I have gone wrong.

I have in error raised an invoice to director as a supplier (as I do for any expenses he pays in cash (the way the company has always dealt with expenses) then I have made a purchase payment of invoice via 1240. Total wrong way, no wander I confused myself!

The problem I have now is how do I correct it? Any ideas?

Thanks

• 
  Kiz
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• # 83724
• Wed 04 Jul 2012 01:37 PM

Hi Kiz,

Can you delete the CC payment, through maintenance, then create a credit on the suplier ledger and allocate against the invoice?

You need to keep a proper trail of the transaction, so just doing a journal would get your figures correct, but there wouldn't be a proper audit trail, so I would avoid this option.

If you can't delete the payment, I would;

- create a credit note on the supplier account to counteract the original invoice (to the same nominal ac). Quoting the invoice it relates to.
- create a new invoice on the supplier ledger. but this time put it to nominal 9998 (suspense) or 9999 (misposting)
- then create a CC receipt (rather than payment) in 1240 and post it to nominal 9998 or 9999 (depending which you used to put the new invoice to).
- Allocate the new invoice against the credit note, so the supplier account is tidy.

Ensure your naratives explain why you have done what you have, and keep paperwork together with explanations.

Now I am sure, if this is not the correct way to do it then someone will say something.

Regards

Kerry

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
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• # 83726
• Wed 04 Jul 2012 02:13 PM

Ok, great. I will put some time aside so that I can correct it properly. At least I know what's gone wrong and I will not be making the same mistake again.

Thanks for your help.

• 
  Kiz
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• # 83727
• Wed 04 Jul 2012 03:12 PM

Hi Kiz
Have you been posting this post as part of your course as a student?
Steve

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• # 83737
• Wed 04 Jul 2012 10:39 PM

Hi Steve,

No I have actually completed my level 1, level 2manual and level 2 computerised. I just haven't applied for associate status yet. 

I just got myself totally confused with the credit card/expenses postings for a while. I don't understand why as I have worked with Sage for almost or 5 years. (although you wouldn't think so by my post)

Why do you ask?

Kiz 

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  Kiz
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• # 83751
• Thu 05 Jul 2012 11:39 AM

Hi Kiz

When I saw your student status I was just a bit worried that you were running a bookkeeping practice without qualifications, PI insurance and MLR registration.

Steve

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• # 83756
• Thu 05 Jul 2012 02:12 PM

Hi Steve, 

No I have just started doing the accounts/payroll for a company and haven't been hands on with sage recently. I am also a member of the AAT, not self employed though yet. 

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  Kiz
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