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Expenses Paid by Credit Card - Recommended Process

We often get asked how best to handle scenarios in which your staff make a purchase for your office or for a job using a credit card. Please review this quick article to learn our recommendations.

If the staff person is using their own credit card (or cash or check) to make office or job related purchases, then they should follow the steps here: Handling Staff Expenses   If you are using this routine, and you also sync to your expenses to QuickBooks, that staff expense would go over as a bill. It is a bill payable to the staff person. No journal entry/ edit is required in this scenario.

If purchases for the office or job are made on a company credit card, the purchase is then reimbursable to the agency, by the agency client. These charges (expenses) should be entered into fp. with the vendor being the company that the purchase was made from.

Example: Your agency buys $5000 worth of supplies from Staples using a credit card, and you want to enter this charge into fp. because the expense is Billable. Staples should be set up as a Vendor in fp. and the expense for $5000 created.  

[Alternately, should your agency not want to add a Vendor company for every place from which you make purchases, you could create a generic Vendor company named something like "Agency Credit Card".]

Once the expense is created,  you would then need to mark the expense as "Manually Exported" in fp, and then manually enter the credit card expense into QuickBooks. In accounting packages such as QuickBooks, credit card charges are supposed to go against credit card accounts. However, expenses from fp. will go into QuickBooks as a bill in your accounts payable.

If you still choose to sync these from fp. to QuickBooks, you would need to manually move the expense amount from accounts payable into a credit card account in QuickBooks. You would still have a bill in QuickBooks, and that bill would need to be both zeroed out and marked as paid.

We welcome your questions or concerns: support@functionpoint.com

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