Paying bills with a credit card

What's covered? Hide

 

When you pay bills with a credit, you transfer the liability from accounts payable to your credit card liability account. To properly track these transactions, you must reduce accounts payable by paying the outstanding bills and increase your credit card liability by the same amount.

 

Enable the A/P credit card module

Before you begin using the credit card wizard to import transactions, you must first enable that component if it is not enabled. Please note that if the module is not currently enabled, you will need to have all users exit ServMan when you enable additional data fields and tables must be added to the system. If you need assistance with enabling the Accounts Payable credit card module, please contact ServMan Customer Care.

  1. Select Task > System Procedures.
  2. Select the System Config procedure group on the left.
  3. Run the Module Management procedure.
  4. Locate the A/P Credit Cards module and change the status to enabled.
  5. Have all users exit the system, including synchronization servers, call escalation servers, and web services. You can click View Current Logins and Locks to see a list of users currently in the system.
  6. Select Utilities > Database Management Utilities > Lock All User Out (All Companies).
  7. Exit ServMan.
  8. Login into ServMan to add the data fields and tables. The login process will cycle through each company in your installation and then shut down.
  9. Login into ServMan.
  10. Select Utilities > Database Management Utilities > Lock All User Out (All Companies) to release the lock out and allow user back into ServMan.

 

back to top

Create a credit card account

ServMan can track bill and expenses paid with credit cards and you reconcile those charges against the statement. In order to do this, you need to create a general ledger account for each credit card account. NOTE: If you have multiple cards on one account, you only need to create a single general ledger account.

  1. Click Chart of Accounts on the General Ledger Navigator.
  2. Click New Code.
  3. Enter the requested information. Credit card accounts are generally treated as other current liabilities.
  4. Enter a description.
  5. Click OK.

 

back to top

Setup a credit card vendor

The next set in using the credit card wizard is to setup your credit card vendors. This identifies the vendors for which credit card transactions can be imported.

  1. Open an existing vendor's account or add a vendor.
  2. Select the Credit Cards tab.
  3. Check the Is a credit card check box.
  4. Select the statement close date.
  5. Enter the credit card liability account. You should have a liability account for each credit card account - not necessarily every credit card because most corporate cards allow you to have multiple cards but treat them as a single account.
  6. Enter the credit card information for each employee. You must enter at least one credit card in order to pay bills with a credit card.
  7. Click OK.

 

back to top

Pay a bill with a credit card

You can post credit card payments directly to a bill on the Credit Card Payments tab. First, however, you must enable the credit card module if it is not already enabled.

  1. Open the bill or add a bill.
  2. Select the Credit Cards Payments tab.
  3. Select the credit card vendor.
  4. Select the credit card.
  5. Enter the amount of the payment to be applied to the card selected in step 4.
  6. Repeat steps 3 through 5 to use more than one card to pay the bill.
  7. Click Save.

 

back to top

Download transactions from a credit card vendor

Log into your credit card vendor's website and download the transactions. ServMan does not connect and download the transactions, this must be done manually.

Each credit card provider's data in a custom format. If your provider is not listed in the supported providers, it is recommended that you download the transaction in CSV format as you can open and edit the layout of these transactions in most spreadsheet application.

 

back to top

Import credit card transactions

When transactions are imported from your credit card statement, ServMan creates a bill and pays that bill with the credit you are importing. If you paid any existing bills entered in your system with a credit card, you should make sure those transactions are recorded in ServMan prior to importing transactions so the bills (invoices) are not duplicated.

  1. Click Import Transactions on the Accounts Payable Navigator.
  2. Select the credit card vendor.
  3. Select the department.
  4. Verify the credit card account - this defaults to the account set on the Credit Card tab on the vendor's account.
  5. Click Next.
  6. Enter a statement period ID. This identifies the transactions for the period. This will default to CCYYMM for the most recent transaction in the import if not specified.
  7. Select the file to import.
  8. Select the import format.
  9. Click Import Charges.
  10. ServMan will attempt to link existing charges to transactions from the import. If any are linked incorrectly, simply click on the imported charge then click Unlink Selected Charge(s).
  11. Link charges by selecting the imported charge and the unlinked A/P charges.
  12. For the remaining unlinked charges, you should associate the vendor and the general ledger account the charge should post to. As appropriate, enter the job ID, category, and subcategory. For transactions over $500.00 a comment is required in the user description field. NOTE: ServMan will remember the vendor and general ledger settings you enter and enter these automatically for future charges.
  13. Click Post Unlinked Charges. This process adds a bill and pays the bill with the credit card. This ensures that the purchase history with the vendor remains correct.
  14. Click Next.
  15. (Optional) Enter your credit card bill or make a payment to your credit card. NOTE: If you enter a bill for your credit card, the amount on the bill should be the amount you intend to pay so the balance for your credit card is accurately reflected in your General Ledger.
  16. Click Finish.

 

back to top

Pay your credit card bill

You can enter a bill for or pay your credit card bill as part of the import process or separately as outlined below.

  1. Click Manual Checks on the Accounts Payable Navigator.
  2. Make sure the cash account reflects the general ledger account from which the funds will be withdrawn.
  3. Select the credit card vendor.
  4. Enter the date.
  5. Select the Apply to Expenses tab.
  6. Enter or select an item or use a hand-keyed item like PAYMENT.
  7. Enter a quantity of 1.
  8. Change the GL Account to the general ledger account for the credit card.
  9. Enter the payment amount in the price field.
  10. (Optional) Click the Menu button and select Assign EFT Check Number if you are paying your credit card online.
  11. Click Print if printing a check or Save if you performed an online transfer.

 

back to top