How to enter and pay credit card bills?

In Core, you can record credit card charges (expenses) through different options, depending on whether you need the itemized details or not. Here is the recommended way of handling the credit card bills as well as their payments.

  1. Adding Credit Card Charges: You can enter the individual credit card charges manually in the Credit Cards screen. Here you might be prompted to add a credit card account, if not already there. Check Core Help for details. 

    Alternatively, you can use the Cloud Feeds feature to automatically download your credit card charges directly into your Core company file. You can also set up the cloud feed rules for the future. Check Core Help for details. This creates a liability against the credit card account and also records the expenses to the appropriate accounts and projects. This is recommended because it allows you to view the expenses by project or vendors (say how much your company spent on marketing expenses, client meetings, travel, conferences, etc.).  
  2. Entering Vendor Bills: The next step is to transfer the liability from the credit card account to your accounts payable; otherwise, credit card charges on their own do not reflect on the A/P Aging report. This is recommended because it is one of the important reports that is looked at by management and you typically want all liabilities, including credit card charges, to be there. You can use the Vendor Bills screen to accomplish this. Check Core Help for details. The information on your credit card statement can correspond to the details needed in the vendor bill:

    Vendor Bill Date = Billing Period End Date
    Due Date = Payment Due Date
    Vendor = Credit Card Company
    Account = Credit Card Account
    Amount = Statement Balance Amount

    The vendor bill decreases the balance owed on the credit card liability account. Creating a vendor bill for the credit card charges ensures that those expenses are included in the cash-flow projections and A/P reports, such as A/P Aging. 

  3. Making Credit Card Payments: Now you can pay your credit card expenses through the vendor bill created above as usual, whether partially or fully, thus reducing your A/P liability created in step 2. This can be done from the Bill Payments screen. Check Core Help for details. When using Cloud Feeds, you might see a credit card payment there; instead of adding it to Core, you can map it to the same vendor bill created in step 2. 
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