Credit Card Register Accounts

 

SuccessWare21® now has a feature that allows the creation and use of register accounts designed specifically for tracking transactions on a credit card account or line of credit.  This new type of register must have a liability account assigned to it, rather than an asset (cash) account.  A credit card register can be used for tracking payments to both vendors and miscellaneous payees, and the register reconciliation process allows quick and easy reconciliation of your credit card statements.   Note that the cash balance reported in the snapshot form will not include credit card account balances.

Register account setup

Register Account Setup has a new option for Credit Card accounts (previously only Cash Box and Bank accounts were available).  When a new account is set up as a Credit Card account, the associated general ledger account must be selected from the Current Liabilities section of the balance sheet.  Cash Boxes and Bank Accounts have always required a cash G/L account, and still do.

To set up a new credit card register account:

  1. Open G/L Setup and make sure you have an appropriate G/L Account set up for the register.  The account must be in the Current Liabilities section of your Chart of Accounts.  SuccessWare recommends using an account in the Payables section of the Balance Sheet.  Do not use the default Accounts Payable account as this will cause problems reconciling G/L to the A/P Aging report.
  2. Open the Account Register.
  3. Choose ‘Select an account’ to get a list of your current registers.
  4. Press CTRL+Enter to modify register accounts (or right click, and select ‘Modify Mode’).
  5. Enter a Register Acct# and Description.
  6. Select ‘Credit Card’.
  7. Enter/select the G/L Account identified in step 1.
  8. You will probably use an adjustment to set up the account’s initial balance.  If you are currently using a bank account to track your credit card purchases, you should have been making adjustments that maintain a zero balance in the account.  If you have not been making these adjustments and therefore maintain a credit balance in the account, you can use a transfer to move the balance from that register account instead.  If you are currently using a bank account to track credit card purchases, a good time to switch over to the new credit card account would be immediately after reconciling your next credit card statement.
  9. If you are discontinuing use of a bank account in favor of a new credit card account, you will want to be sure to deactivate the old account.

Making payments using your credit card account

Credit card register accounts can be used when making payments - either for vendor or miscellaneous payments.  When recording the payment, simply choose the ‘Credit card’ option for Pay By, and enter/select the appropriate credit card account.

Making payments to your credit card account

To make a payment to your credit card account:

  1. Open the account from which you are making the payment, typically your bank checking account.
  2. Select ‘Register acct’ for the type of payment being made.  When this selection is made a box is displayed for entry of the register account to be paid.
  3. Enter the payment information including the credit card account you are paying.
  4. Print the check and post the payment as normal.  An entry is made showing the payment to the credit card account, in addition to the entry decreasing your bank account.

Account reconciliation

Use the reconciliation process of the account register to reconcile your register with your credit card statement each month.  The reconciliation process for credit card accounts is very similar to the process for bank accounts.

Pay Bills

Pay Bills in the Payables Manager now provides an additional option for the review and payment of credit card register accounts.  Accounts are listed with information regarding the most recent account reconciliation, including statement date and ending balance, payment due date, and minimum payment due.  When selected for payment (Double-Click or Space Bar) the Amount to Pay will default to the statement ending balance.  If payments have been made since the last account reconciliation (Outstanding Payments), the Amount to Pay will default to the difference between the statement ending balance and outstanding payments.  Therefore it is important that your account reconciliations are up to date when using this feature.  There is also an option on the Right-Click popup menu for “Select for minimum payment due”.

Once the items are selected for payment, checks are processed just like when paying bills for accounts payable.

Register account security

New user ability settings are also available with this update.

·   Previously, if a user was granted access to the account register module, the user could select and view any register account.  Now access can be granted based upon account type.  There are separate user ability settings for each type of account – cash box accounts, bank accounts, credit card accounts – plus a special ability that allows or disallows access to the payroll bank account.  With this new flexibility, a particular user could be allowed to reconcile the default receipt cash box for deposit, but could be prevented from seeing bank account and/or payroll account information.

o     Modify these new abilities on the Accounting page of User Group Setup.

·   A new ability setting has been created to allow or disallow access to Register Account Setup.  Previously, access was granted based upon the ability to Add/Edit Entries in the Reference Library.

o     Modify this new ability setting on the Setup page of User Groups Setup.