Check From Credit Card Company

[hannah]

I received a check from a credit card company (A) and I want to know a correct way to record this into the system. Since we will have to pay the credit card company back for the $$ amount on the check later + some interests and some credit card purchases recently.

Thanks,
Hannah

[rick Prindivill]

You will enter the Vendor Check under Tasks, Reciepts, select Vendor ID versus Customer ID and proceed accordingly. The money will now show up on the Vendors account and can be seen under Tasks - (Vendor) Payments.

[hannah]

Ok. So just said, I will set up this under Vendor in Matain Vendor window for this credit card Company A then, so this under look up of Expensive Account. Will this be Accounts Payable or Other Current Liabilities?

Assuming, I order some items vendor (E) on a PO order and using a credit card from Company A to pay for the items. When I receive the items in, I will enter by the qty and the invoice # under Purchase/Receive Inventory under Tasks.

Also, I will receive a statement from credit card Company A. I will go to go Tasks->payment select vendor (E) and enter the amount on credit card statement being charge. Since this is not a checking but a credit card account stype..so this will be under either Accounts Payable or Other Current Liabilities under look up by Cash account?

Hannah

[kh_design]

On a few occasions I have had similar refunds from vendors. I entered the refund in Peachtree as a Purchase/Payment to the Vendor with a negative (-) $ number in the Amount and the vendor's check number in the check number box, GL Account is the same as if you are paying the vendor and the cash account is were the refund is deposited.

Yes, Refund entered as a Purchase/Payment with a negative (-) $ number in the amount box, and it works fine.

Typical Purchase/Payment entries for payment to vendors are of course a positive $ number in the amount box, but I have found that refunds from vendors can be entered as a Purchase/Payment with a negative (-) $ number in the amount box.

[BentFranklin]

Credit card balances should be carried on their own accounts of type Current Liability. I would use a General Journal entry increasing the liability account and increasing cash. However, if your Vendor default account is set to the liability account, then a negative payment will do the same thing.