Issue/Symptom/Question

How do I record paying an AP Vendor using a Credit Card in PENTA?

Applies To

PFW PENTA

Windows Used in Article:

Finance & Accounting>Setup>Accounts>Chart of Accounts

Finance & Accounting>Setup>Accounts>Cash Accounts

Finance & Accounting>Setup>Form Information

Accounts Payable>Vendors>Vendor Information

Accounts Payable>Invoices>Invoice & Credit Memo Entry

Accounts Payable>Check Processing>Automated Check Processing>Select Items for Payment

Accounts Payable>Check Processing>Automated Check Processing>Start AP Check Processing

Accounts Payable>Check Processing>Automated Check Processing>Complete AP Check Processing

Accounts Payable>Check Processing>Automated Check Processing>Manual Payment Entry

Resolution/Fix/Answer

SETUP

• Navigate to the Chart of Accounts window and add a new account to track Credit Card payments through
• Create a new GL Credit Card Cash Account - the purpose is so you can separate the Credit Card payments from normal AP invoices when processing & paying AP invoices

• Navigate to the Cash Accounts window to link the new GL account to the Bank Accounts
• Create a new Cash Account to link the new Cash GL Account to

• Navigate to the Form Information window to create a new Credit Card form to link to the Credit Card Vendors
• Create a new AP Check Form and link the new Cash Account to this form and enter a 'N' in the field called 'Print AP Checks/DD Advice Notices (Y/N)' so PENTA does not create a check or DD advice

• Navigate to the Vendor Information window to link the new Credit Card form to the Credit Card Vendors
• Assign the new Check Form to the Vendors that you pay by Credit Card

PROCESSING

1. Navigate to the Invoice & Credit Memo Entry window to record the invoices to be paid by Credit Card
   1. Create AP invoices for recording material or equipment purchases for Credit Card Vendors using the new Credit Card AP Check Form
2. Navigate to the Select Items For Payment window to select the Credit Card invoices to pay just like any other normal invoice - you could query the invoices back by the Credit Card Check Form
3. Navigate to the Start AP Check Processing window and enter the new Credit Card check form and start the process
4. Navigate to the Complete AP Check Processing window and note that no checks or advice notices got generated for invoices related to that Check Form
   • Once this process has completed PENTA will have debited the AP Trade GL account and credited the new Credit Card Cash GL Account 10400 in this example
   • Note no 'actual' cash has been disbursed since this was paid via a Credit Card
5. Contact the Vendor to provide the Credit Card information for the actual payment of the invoices
6. When the Credit Card statement comes in, navigate to the Invoice & Credit Memo Entry window and create an AP invoice to record the Credit Card payment owed to the Credit Card supplier. Enter the debit to a GL expense clearing account say 60100 as an example
7. When it is time to pay the Credit Card company, navigate to the Select Items for Payment window and select the Credit Card invoices to pay.
8. Navigate to the Start AP Check Processing window and select the check form to create a check to pay the Credit Card supplier
9. Navigate to the Complete AP Check Processing window and click on the Load all available forms button to create the AP cash transactions for the invoices included in this process
   
   • Once this process has completed PENTA will have debited the AP Trade GL account and credited the normal AP Cash GL Account - actual cash has been disbursed
10. Navigate to the Manual Payment Entry window and debit the Credit Card Cash Account 10400 used on the initial Credit Card payment and credit the GL expense clearing account 60100 so all accounts are cleared

Cause 

Some Vendors will accept payment of invoices via a Credit Card