Processing Purchase Orders with Credit Cards

DEACOM provides the ability to process credit card transactions in order to handle the payment of standard Purchase Orders.

Configuration

If using Vendor Groups, these will need to be created prior to processing credit card payments for Purchase Orders.

Process

There are four options to use credit cards as a payment method on the purchasing side: Using Vendor Groups, paying against a specific Purchase Order, entering a Purchase Order for a credit card bill, and using a Cash account. See below for the process steps associated with each option.

Using Vendor Groups

  1. Ensure that the appropriate credit card Vendor Group exists, as described in the Managing Vendors Using Vendor Groups Best Practice page.
  2. Create Purchase Orders for the Vendors that will be paid via credit card as normal. Refer to Entering Purchase Orders for more information.
  3. Receive the Purchase Orders and process the Vendor invoices as normal. Refer to Receiving Purchase Orders and Entering Vendor Invoices for more information. The invoice(s) will be paid manually via credit card and the credit card bill(s) will be paid via check.
  4. Process the check via the Check Run function. On the Check Run form, select the Purchase Order and credit card Vendor Group so that payment is remitted to the correct location (the invoice will pay to the name and address on the Vendor Group as a single check). Refer to Processing Accounts Payable After PO Receipt for more information.

Paying Purchase Orders

  1. Navigate to Accounting > Manual Checks, fill out the pre-filter as required then click the "View" button. This will bring up the Invoices to Pay form, which lists open invoices.
  2. Select the Purchase Order to pay and move it to the right side of the Invoices to Pay form.
  3. Click the "Modify Amt" button, which will bring up the Payment Deductions form.
  4. On the Payment Deductions form, in the "Account" field, select or create an AP Adjustment account. In the "Debit Amount" field, enter the same amount as in the "Set Total Amount" field.
  5. Change the "Description" field to "Credit Card Transfer" (or other similar note).
  6. Click the "Add" button. A line for the Credit Card Transfer will appear at the top of the form, under the existing lines. Save and Exit.
  7. The Invoices to Pay form should still be open. On that form, the invoice line that was just modified should display an amount of 0.00 in the "Cash" column.
  8. On the Invoices to Pay form, click "Apply", which will open the Process Checks form.
  9. On the Process Checks form, enter "Credit Card Transfer" (or other similar note).
  10. In the "Payment Type" field, pick a Credit Card.
  11. Click "Continue", which will close the "Process Checks" form.
  12. Navigate to Accounting > Accounting Reporting and select a Report type of "General Ledger Detail".
  13. Click the "View" button and note that the Accounts Payable account displays a debit and the Accounts Payable Adjustment account displays a credit.
  14. Navigate to Purchasing > Order Entry. Set the "Vendor" field to Visa (or whichever vendor represents the credit card). If the credit card is not set up with a Vendor entry, one will have to be created in Purchasing > Vendors. For more information on these items, refer to the Entering Purchase Orders and Managing Vendors Best Practice pages.
  15. Click "Add" on the Purchase Order Entry form.
  16. Enter the AP Adjustment account from earlier, and anything in the "Description" field. Also select the same quantity and unit price as in the original order. Check off the "Invoice/Pre-pay" box and click "Save", which will open the Enter Invoice Received form.
  17. In the "Invoice Number" field, enter any desired number then click "Save".
  18. If the "Print Check Now" flag is unchecked, the check will appear for the regular Check Run.

Entering a Purchase Order for a credit card bill

  1. Hand key line items to appropriate accounts and process. This method is also used in conjunction with Option 2.

Using a Cash account

  1. Create a Cash Account for the credit card liability in the Chart of Accounts (see above).
  2. When paying a Vendor (i.e. transferring the liability from AP to the credit card Cash Account) use this credit card Cash Account in the "Cash Account" field when processing the payment via Accounting > Manual Checks. Multiple invoices can be paid in the same transaction.
  3. When the credit card bill is received, enter a Purchase Order for the credit card Vendor and use the credit card Cash Account as the Charge to Account on the Purchase Order lines. This will clear the existing liability out of the Cash Account and transfer it to the AP account. This is done via Purchasing > Order Entry > Add > Enter Description (e.g. "September American Express Bill") and enter credit card Cash Account in the "Charge to Account" field when adding a line (no Part Number is needed).
  4. Additional lines can be added to the Purchase Order for charges on the credit card that were not already in the credit card Cash Account and currently do not have a Purchase Order.