While processing credit card payments from customers is fully implemented in xTuple, a complete solution for paying vendors by credit card is still in the design stage. However, that being said, this article describes one process flow you can use to record credit card payments made to vendors. Other process flows are also possible.
Required set up
For this solution to work, there are a couple of key set up issues that must be in place. We'll be assuming an American Express (AMEX) card in this example. However, you can replicate the same set up for any other credit card you choose.
The three required setup steps are listed below. The first two steps can be done from the accounting module's "Setup" submenu, and the third step can be done from the purchase module's "Vendor" submenu:
- 1.) Create a bank account called AMEX. The bank account screen typically requires you to enter an asset, or cash account. However, for this case we need to enter the liability account linked to your AMEX card.
Creating a Bank Account
2.) Create an expense category called AMEX. Enter your AMEX liability account as the expense account for this AMEX expense category.
Creating an Expense Category
3.) Make AMEX one of your vendors in xTuple.
Creating a Vendor
Additionally, you could also create a unique credit card receipt form to use instead of a traditional check format. This receipt form would be linked to your AMEX bank account using the check format option.
That is it for setup, now we can move onto the process flows:
Initial process flow
The initial flow is straightforward, the only obstacle being the use of the AMEX bank account. Here are basic steps in this flow:
- Enter and post a voucher to record the purchase you made from your vendor.
- Select the voucher for payment—and when selecting it, be sure to specify you are paying using your AMEX bank account.
- Print and post the check.
Note: If you set up a unique credit card receipt form, you would be printing that receipt here—instead of a traditional check.
That's it for the initial part of the process. You still need to show a balance in your AMEX liability account, however, we will clear that when the AMEX bill comes in, as described in the secondary steps:
Secondary steps: Paying the credit card company
To clear out your credit card liability and pay AMEX, follow these steps:
- Create a miscellaneous check payable to your vendor AMEX.
- Make sure to charge the check to your AMEX expense category.
- Also for your bank account choose the cash account you would normally pay bills with.
- Finally, print and post the check.
Your AMEX liability is now clear and the process flow is finished.