Have set up credit card(s) as bank accounts, with controlling liability account. Have reconciled credit card against statement. Can’t see any way to create a payable entry for the credit card bill, as the account list for purchase invoice entry is limited to expense accounts. How can the payable be recorded?
What do you mean by “a Payable entry”?
A purchase invoice credits the supplier’s account and debits an expense account or perhaps an asset account if it is to purchase inventory or fixed asset
The Credit card account is used to make a payment so for example when you pay the supplier
If you want to post the purchase directly to the credit card account, then you use a Payment transaction not a Purchase Invoice transaction
If I purchase items (make payments) using a credit card, then receive the credit card statement and clear the appropriate payment and charge detail items, I’m left with no way to record the fact that I still need to make a payment to the bank issuing the credit card. There is no way I can see to create that payable entry as the accounts available for entry of a purchase invoice are limited to expense accounts. In this instance the account should be the credit card bank account.
A payment from a Bank account to a Credit Card account is a payment between two bank accounts in Manager
Use the Inter-Accout tranfers tab Transfer money between bank and cash accounts | Manager
That accomplishes the actual payment, but still does not recognize any payable due in the interim.
As I said above, you have 2 options
- Use a Payment transaction and select the Credit card account as the payment account
- Create Purchase Invoices and then create a Payment transaction to the supplier
Maybe you should take some time to read the numerous guides available
Neither suggestion addresses the point, and the guides all seem to assume a transaction for which there is no basis in reality. It is as if the app assumes that the reconciliation accomplishes the payment of the amount due, an assumption for which there is no basis.
assuming that you have created a separate account for your credit cards and bank accounts in the
Bank and Cash Accounts tab as per the guide, your workflow should be as below.
- you enter purchase invoices in the
- you make the payment for the purchase invoice from your credit card account using the
- you record the payment towards your credit card from any other bank or cash accounts created in Manager using the
Inter Account Transferstab. the guide Transfer money between bank and cash accounts | Manager
Just create a test company. You need the following enabled in “Customize”:
In “Settings” you need to create the following control accounts where the Bank Account is an Asset account and the Credit Card a Liability Account:
In Bank and Cash accounts you need to create the following 2 accounts:
Now make a payment with the credit card:
The summary screen will show:
Now you have to pay from your bank account 2,500 to cover the credit card liability. As explained by @Joe91 and @sharpdrivetek this can only be done by an Interaccount transfer, so create the following:
The Summary screen will now look like:
The bank account is now -2,500 and the credit account is cleared. Now if you import as I do your bank statements than this payment will appear in the list and would thus become a “double” payment. At that stage I copy the bank statement information in the description of the inter-account transfer and delete the particular bank statement entry that was added for this by the import.
All of that makes sense, but skips the step of reconciliation for the credit card account to the statement from the issuing bank. Performing such a reconciliation appears to assume that the payment of the statement balance has actually been made - which it has not. The only way to accomplish what is being described is to never reconcile the card account - which isn’t a really good answer.
In the example above the credit card and bank account reconciliations work (activated in “Customize”). The closing balance to enter is -2,500 for the bank account and 0 for the credit card:
All the transactions made by the credit card are in the Credit Card Balance overview:
And when you trace the Computer Equipment expense you see that it was paid by Credit Card.
The reconciliations in both cases are correct and the payments attributed correctly as well. So not sure what the problem is.
In the bank statement the amount of 2,500 paid to credit card supplier would be included in the import of that statement. What you need to be sure of is that the inter-account transfer uses exactly that amount. Then as mentioned you need to copy the description information generated by the bank to the description of the inter-account transfer. You must ensure that the status of both the bank account and credit card payments are cleared otherwise they would not reconcile. The bank account payments when imported from a statement by default will be cleared. For the credit card you must check that it is and put the bank date of the payment to the credit card in the cleared field.
- Any transaction in an imported bank (or credit card) statement is, by definition, cleared and must be entered or edited accordingly.
- You cannot keep both manual and imported payments and receipts in your records.
- Purchase invoices do not affect bank accounts. They create liabilities to pay suppliers, but only payment transactions will be reflected in imported statements or reconciliations.
- Inter account transfers (used to pay off credit card statements) cannot be handled fully with import of a single bank statement, because the statement includes only one leg of any transfer. See the Guide: Post inter account transfers from imported bank statements | Manager.
Please believe me; Manager functions correctly in all respects when it comes to paying for things with credit cards and reconciling bank accounts. Thousands of users do it successfully all the time.
Everything addressed in the replies works perfectly, but still misses the initial point. On reconciling the credit card account to the statement, there is no way to record a payable entry against the credit card balance. Paying the card balance with an inter-account transfer works just fine, but between the time the account is reconciled and the time the statement is paid, there is no record of an amount due and payable by a given date other than the running balance in the credit card control account. If a purchase invoice could be entered, due by a given date, against the credit card bank account, subsequently paid from, for example, a checking account, all would make sense, but you can’t specify the credit card account on the purchase invoice.
Of course not. An invoice itself indicates some kind of credit given to you by supplier for a period in which they expect payment to be made. A credit card is a payment source similar to a bank or cash account. You can thus select on the Invoice view “New Payment” and assign that payment to the credit card. Once you pay off- the credit card (imported bank statement payment to credit card company) you can assign an inter-account transfer from credit card to that bank payment to clear it all up.
I also do not see how invoices influence bank reconciliations. The latter only verifies if all receipts and payments are accounted for in your system for the period. It does not relate to accounts payable and receivable.
In the case of a credit card, the act of reconciling to a statement should also generate a payable to the banking institution that issued the card. The bill does exist and does need to be paid, but there is no way to record that fact.
No, it should not. You owe no additional money just because you have received and reconciled a statement from the credit card issuer.
No, it does not. A credit card gets cleared by for example your bank paying the balance. This payment to the credit card company is recorded as a payment on your bank statement to the credit card company. The items you purchased with the credit card are listed under the credit card payments. When you receive the bank statement with the payment to the credit card that particular payment should be recognized in your inter account transfer see:
Once again, everything you state is true, and continues to ignore the point of needing to record a payable that exists from the time of reconciling the credit card statement to the payment of the amount due.