I am looking to learn the best way to handle the monthly entries for corporate credit card charges & interest. When creating a regular monthly bank loan payment we use an invoice journal entry to create an A/P that allocates the interest & principle portion of the payment properly. However, in the case of revolving accounts and credit lines where there is additional account activity (more expense charges to those accounts), is it fair to assume that a separate general journal entry would be the proper way to enter these? It would seem that the only way to handle these types of accounts would be a monthly GJ entry for the charges and interest and then a separate Invoice Journal entry for the monthly payment. Is this the best way? Is there a more efficient or “neater” way to manage corporate credit cards?
Before answering your question, can you tell me how many transactions would be involved in a normal month? Is the interest paid to the same vendor or just general interest paid to credit card company?
On these accounts, usually only up to about 4 or 5 on any given month and sometimes none accept the interest. Also, the interest would be the interest to the credit card company. I am trying to determine the best practice for receiving the monthly credit card statement, entering its list of charges & interest and also create the payable invoice for the minimum payment.
Do you use SSRS to import/export transaction data? I talked to our developers, they said, they usually use an SSRS or SQL to import/export credit card transaction. But in terms of cost efficient, I would you just create journals manually or maybe use the periodic journal templates.
Do you use SSRS or SQL to import/export credit card transactions? That’s what I heard from developers. But, based on your transaction volume, I would suggest creating journal manually for expense or using periodic journal template; for the interest to credit card company, maybe you can use invoice journal and treat it as normal payment to vendors. Just some of my thoughts.
I don’t use an import routine for this. I figured that the limited amount of transactions (which do not need approval in this case) would still keep this a manual process but I was more concerned that I was using the best option for doing so. Would you say that using a General Journal entry for the various monthly charges and a separate Invoice Journal entry is the most proper procedure to handle credit card transactions from the monthly statement?