Managing Credit Cards simply means you track any charges and credits applied to your merchant Credit Cards and verify this activity against your statements each month. Credit Card activity is track by entering each transaction into Total Office Manager as a Credit Card Charge or Credit Card Credit when the charge/credit occurs. Anytime someone uses the company card to purchase anything, your bookkeeper should receive the receipts for these transactions. They are then entered into Total Office Manager as a Credit Card Charge/Credit. When your statement arrives, you reconcile the transactions in Total Office Manager against the statement and decide how much to pay. The running balance for the Credit Card account is stored in your Credit Card Chart of Account balance.
Accessing the Credit Card Menus
From the main menu options, click Banking | Manage Credit Cards
From the Manage Credit Cards pop out menu, you will find the options that are available for managing your Credit Card accounts.
- Enter Credit Card Charges: Entry of individual charges made on your Credits Cards. Click here for more information
- Enter Credit Card Credits: Entry of credits/refunds issued to your Credit Card. Click here for more information
- Credit Card Credit/Charge List: A central location for all Credit Card Charges and Credit Card Credits that have been entered into Total Office Manager.
- Verify & Pay Credit Card: Entering Payments on your Credit Card accounts and reconciling of the Credit Cards against statements received from your Credit Card merchant. (Read further below for instructions)
Setting up Credit Card Accounts for Use in Total Office Manager
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From the main menu options, click Banking | Chart of Accounts List.
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By either right clicking on the list form or going to the Chart of Accounts List form menu, choose the option New Account.
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Select Credit Card as the from the Type drop down. Complete the remaining Chart of Account information.
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In the Vendor drop down, select the Vendor Name that you receive your statements from. Once you begin entering transactions for this Credit Card, you will NOT be able to change the Vendor selection. Please verify that the correct Vendor is selected before entering transactions. If the Vendor for your Credit Card does change, you will need to setup a new Credit Card account and designate the new Vendor.
o For existing Credit Card accounts, you will need to edit the Chart of Account for your existing Credit Card accounts and designate the Vendor that is associated with your Credit Cards PRIOR to proceeding with Credit Card transactions in the program.
Verify & Pay Credit Card Menu Options
Total Office Manager allows you to manage your Credit Card Payments in two different ways. By choosing the option to “Make a Payment on a Credit Card Balance”; you can quickly pay against the outstanding balance on your Credit Card account, without the hassle of reconciling. This feature is handy for partial payments that need to be made on your Credit Card between statement cycles. In order to make payments using the Credit Card Payment form, you will need to have Security permissions to Write Checks and/or Enter Credit Card Charges.
If the option is chosen to Reconcile Credit Card, you can verify any Credit Card activity that appears on your Credit Card statement against the information that has been submitted and entered into Total Office Manager. In order to make reconcile a Credit Card, you will need to have Security permissions to Reconciliation, Write Checks, and/or Enter Bills.
Making Payments on Credit Card Accounts
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Select Credit Card: This is a drop down menu that lists only Chart of Account types that are Credit Card.
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Current Balance: This is a non-editable field that displays the Chart of Account balance. The balance displayed in this field is for all time.
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Payable to: This is a non-editable field that displays the Vendor assigned within the Chart of Account.
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Date of Payment: This is the date that you are making the payment. By default, the date is set to today’s date.
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Amount to Pay: This is the amount that you are creating the payment for.
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Remaining Balance: This is a non-editable field that displays what the new balance for the Credit Card will be after the payment is generated.
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Payment Method: The method you are going to make the payment. Acceptable payment options are Check or Credit Card.
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Account Paid From: The Chart of Account (Bank or Credit Card) payment is being made from.
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Pay Now: Creates a Check or a Credit Card Charge.
o When the Payment Method is Check: Clicking the Pay Now button, the newly created Check will be opened automatically. This Check will appear as follows:
o Bank: Populated based on the Account Paid From on the Credit Card Payment form.
o Pay to the order of: Populated based on the Payable to on the Credit Card Payment form.
o Date: Populated based on the Date of Payment on the Credit Card Payment form.
o Amount: Populated based on the Amount to Pay on the Credit Card Payment form.
o Memo: CC Payment via CC Pay form for Card #1234567890123456 by default, with Card # being the entry in the Card No. field on the Chart of Account. You can change this if necessary.
o Expenses Account: Populated based on the Credit Card Chart of Account selected on the Credit Card Payment form.
o Expenses Amount: Populated using the Amount to Pay on the Credit Card Payment form.
o Expenses Memo: CC Payment via CC Pay form for Card #1234567890123456 by default, with Card # being the entry in the Card No. field on the Chart of Account. You can change this if necessary.
Reconciling Credit Card Accounts
Account: Shows only Chart of Account types which are Credit Card.
· Statement Date: Selection should be made to match the statement date that appears on your Credit Card statement that you received from your merchant.
· Last Reconciled: Shows the last Statement Date that was reconciled for the Account that is selected.
· Previous Balance: Displays the New Balance from the last reconciliation that was completed for the Credit Card selected.
· New Balance: Should be entered based on the New Balance that is reported on your Credit Card statement that you received from your merchant.
· CC Payment Method:
o Create Check for Full Payment Now: Creates a Check for the amount in the New Balance field once the account is reconciled.
o Create Bill for Full Payment Later: Creates a Bill for the amount in the New Balance field once the account is reconciled.
o Reconcile with Partial Payment Now: Creates a Check for the amount entered on the Reconciliation form once the account is reconciled.
o Reconcile without Payment (Pay Later): Selected entries are reconciled without the creation of a Bill or Check.
· Finance/Interest Charge: Enter if you received penalties on your Credit Card statement.
· Date: Enter the date any penalties were accessed.
· Account: Select the Chart of Account that you would like the Finance/Interest Charges to report in on your financial reports.
· Click the Cancel button to close the form or Continue to proceed with the reconciliation process.
· Mark All: ALL transactions that are currently displayed on both sides of the Reconciliation form are checked.
· Unmark All: ALL transactions that are currently displayed on both sides of the Reconciliation form are unchecked.
· Hide transactions that appear after the Statement Date
o This is a Checkbox option. When checked, all transactions that are AFTER the Statement Date entered on the Begin Reconciliation form will be suppressed. If you begin checking off transactions, please save the form before checking this option.
· Enter Charge
o When clicked, Enter CC Charge form is opened. When CC Charge is saved, Reconciliation form is auto refreshed with new entry.
· Enter Credit
o When clicked, Enter CC Credit form is opened. When CC Credit is saved, Reconciliation form is auto refreshed with new entry.
· Charges & Payments Mark: Allows you to quickly check Charges and Cash Advances that have a Date within the From & To date range.
· Charges & Payments Unmark: Allows you to quickly uncheck Payments and Credits that have a Date within the From & To date range.
· Payable To: This is a non-editable field that displays the Vendor assigned within the Credit Card Chart of Account.
· Amount to Pay: Based on options selected on the Begin Reconciliation form, allows for entry of an amount to pay at the end of the Reconciliation.
· Pay Date: This is the Date that you are making the payment. It will default to today’s date.
· Refresh: Reloads the form with updated transactions.
· Save: Saves the existing form.
· Reconcile Now: Clears all transactions selected and prompts for Reconciliation report to be displayed for your records.
When the option to Create Check for Full Payment Now is selected, the Check for the amount in the New Balance is created.
Bank: Populated based on the Account Paid From on the Credit Card Payment form.
Pay to the order of: Populated based on the Payable to on the Credit Card Payment form.
o Date: Populated based on the Date of Payment on the Credit Card Payment form.
o Amount: Populated based on the Amount to Pay on the Credit Card Payment form.
o Memo: CC Payment via CC Pay form for Card #1234567890123456 by default, with Card # being the entry in the Card No. field on the Chart of Account. You can change this if necessary.
o Expenses Account: Populated based on the Credit Card Chart of Account selected on the Credit Card Payment form.
o Expenses Amount: Populated using the Amount to Pay on the Credit Card Payment form.
o Expenses Memo: CC Payment via CC Pay form for Card #1234567890123456 by default, with Card # being the entry in the Card No. field on the Chart of Account. You can change this if necessary.
When the option to Create Bill for Payment Later is selected, a Bill for the entire amount entered in the New Balance is created. In order for the partial payment from the Bill to appear correctly in the next Credit Card reconciliation, you will need to edit the Bill amount PRIOR to paying it. The edited Bill amount needs to reflect the actual amount you are paying against your Credit Card balance. While this option is available, it is recommended that you utilize the Credit Card Payment form for making partial Payments against your Credit Card.
- Vendor: Vendor assigned within the Credit Card Chart of Account.
- Reference #: Blank by Default. You can manually enter the Reference # if needed.
- Memo: CC Payment via 7/31/2010 CC Reconciliation for Card #1234567890123456 by default. Date populated is the Statement Date entered on the Begin Reconciliation form and the Card # entry that appears within the Credit Card Chart of Account.
- Date: Populated using the Date selected on the Reconciliation form.
- Date Due: Populated based on Terms.
- Amount: Populated based on the Amount to Pay on the Reconciliation form.
- Expenses Account: Populated based the Credit Card Chart of Account selected on the Begin Reconciliation form.
- Expenses Amount: Populated based on the Amount to Pay on the Reconciliation form.
- Expenses Memo: CC Payment via 7/31/2010 CC Reconciliation for Card #1234567890123456 by default. Date populated is the Statement Date entered on the Begin Reconciliation form and the Card # entry that appears within the Credit Card Chart of Account.
When the option to Reconcile with Partial Payment Now is selected, the Check for the amount entered on the Reconciliation form in the “Amount to Pay” field is created. This Check is created just like the Check explained for the Create Check for Full Payment Now option.
When the option to Reconcile without Payment (Pay Later) is selected, the Credit Card account is reconciled with selected entries being cleared and without the creation of a Bill or Check.
Audit Trail Entries for Reconciling Credit Card Accounts
For your reference, anytime a Credit Card is reconciled, Audit Trail Entries are created to indicate the manner in which a Credit Card account was reconciled.
