Just wondering how I could make a proper adjustment to my visa account after I paid some of the balance with accumulated points?
Via a Receive Money for the value paid off with the Account being an BS Equity - Funds Contribution account for a sole trader or partner, but for a company - Shareholders Loans
Another way to do this is with an expense claim for the value covered by points. This is similar to using an expense claim to record automobile mileage or per diem meal allowances. The expenses are real business expenses and deserve to be captured to reduce your income for tax purposes. But no money actually changed hands.
However you do this, allowances and application of points earned (assuming they belong to you) are equivalent to contributing funds into the company.
If you use the Expense Claim - how does this make an actual adjustment to the Visa Account balance ?
The points are being converted into CASH and then that cash is used to make a payment to the Visa Card.
The CASH is the payment, not the points.
You must do this at the time the Visa card transaction is entered into Manager (not necessarily when the charge is incurred), which of course means you must wait until you have the statement and decide to pay with points. At this time, you allocate the purchase to the appropriate expense account or
Billable expenses. This is somewhat analogous to waiting to enter other cash account transactions until you import a bank statement.
Prior to the change to Manager that restricted all transactions involving cash/bank accounts to the
Cash Accounts tab, you could create an expense claim and allocate directly to a cash account. You can’t do that anymore. So this approach is no longer as simple as it used to be. And it is probably less confusing to do it the way @Brucanna suggested.
One negative aspect of the change mentioned above, in my opinion, is that a sole owner or partner can no longer contribute funds to the company directly by paying a company credit card statement with personal funds and recording the transaction directly with an expense claim.
There are no transactions involved in the topic question, therefore expenses claims don’t have any application.
@RSleigh stated "after I paid some of the balance"
Therefore the subject of the topic solely relates to making payments that reduce the credit card balance.
- Yes they can - Visa Card Receive Money with Account = Funds Contributed
- If its a company credit card why would you be using an expense claim - wouldn’t any transactions be posted directly as Visa Card Spend Money.
If the business transactions were on a personal credit card - then the expense claim would have relevance.
You seem to have missed my points, @Brucanna.
Regarding your first objection, I very clearly stated that using an expense claim required that you have the statement in hand and decide to pay with points. So at the point where payment of the credit card balance occurs, you would be making a choice to use a personal source of funding (which in this case happens to be points).
Regarding your second objection, you edited your quotation of what I wrote to give the impression I was making two distinct points, even going so far as to number them. After doing that, you deconstructed my compound-verb sentence and contradicted the separate halves. What I wrote was that you could no longer use an expense claim to directly record the contribution of funds via the payment of a company credit card statement with personal funds. You must now first record the contribution of funds to the company and then record the payment of the credit card balance with corporate funds.
As to your final question about why an expense claim would be used in connection with a company credit card, my entire final paragraph was about how it is now less convenient to use that mechanism to record contributions of funds. I acknowledged earlier in the thread that this was no longer straightforward.
Your continual reference to expense claims makes an assumption that a month or so before one needed to make a particular payment to the credit card that one knew they were going to use the points as part payment - or knew by that time there were going to have sufficient points available to be used
In the normal course of events one would have been either processing the credit card expenditures as they occurred or would have been using the import bank statement feature - both of which would have occurred prior to any payment date and negates any consideration of expenses claims usage.
No, I added numbers because one continuous piece of text was being quoted and the response had two unrelated parts
So why continue to propagate a yesterday practise which is now redundant as a solution for today ??
The topic was about finding a simple solution not making it more complex by advocating “less convenient” and “no longer straightforward” responses.