Purchase Invoice For Credit Card

How to do this was explained in reply #4 of this topic

@Geezer, I think you misunderstand what a payable is in accounting. It is a debt owed to an outside entity. What you are describing as a payable is merely the need to transfer money internally from one pocket to another.

@Geezer, what you are asking is for the credit card account to combine the features of both Bank Accounts and Supplier accounts. That’s impossible.

What other guys are suggesting is to classify your credit card account as a bank account and thus you can do the following:

  • Issue receipts, payment and transfers from and to it
  • Be able to reconcile it as any other bank account
  • Be able to import the entire Credit Card Statement line by line instead of creating a single invoice.

Even if you treat your credit card as a simple supplier, you will lose original transaction details and possibly duplicate entries from other suppliers and bank accounts. You will never be able to place your finger on the duplication or other errors just by looking at your books.

The outside entity is the bank that extended you credit. Paying the credit card statement is not an internal only transfer.

@Geezer, from the perspective of accounting with Manager, it is an internal transfer. Your credit card, as has been explained multiple times, is considered a bank account by the program. When you pay the balance, you are transferring an asset from (for example) a checking account to a credit card.

Consider the case where you returned a large purchase and your card balance was in credit (from the card issuer’s perspective). You could spend that money on the next thing you bought via the credit card, the same way you could write a check or pay with folding money.

You can argue this point all you want, but that will not change reality. If you set your credit card up properly within Manager (Set up credit cards | Manager), as @sharpdrivetek has already explained, it’s a bank account. Your bank accounts cannot be suppliers any more than the wallet in your pocket. So you cannot enter a purchase invoice when the statement arrives.

Based on ‘reality’, if you keep a “folder” with bills due to be paid, you might expect that the total of items in that folder would match up with the amount in Accounts Payable. That will never be true when you owe a financial institution money for a credit card bill in your scenario.

@Geezer, responses to your inquiry have not been from the perspective of your so-called “reality.” They have been from the perspective of proper accounting principles. Your credit card issuer is not a supplier, but the holder of what is effectively a contra bank account. So they should never appear in Accounts payable. Trying to treat things that way means that a $100 purchase via credit card of office supplies will add $100 to Accounts payable to the merchant and another $100 to Accounts payable to the credit card issuer. In other words, you would be double-counting.

No matter how you look at this from your desire to forecast cash flow, your credit card balance is not a payable. Arguing this position further will not change that accounting fact.