AP Disbursements Paid by Credit Card

If you use the Credit Card feature, you can enter an AP disbursement to pay a vendor invoice with a credit card.

Configuration

Secondary credit cards that you set up in Settings > Advanced Accounting > Credit Cards are used for paying AP disbursements. Only the secondary credit cards that have the Available to AP check box selected in Credit Card Configuration are available for payments in AP Disbursement Transaction Entry.

Transaction Entry

In AP Disbursement Transaction Entry, you select Credit Card in the Payment Method field on the New File dialog box when you create the AP Disbursement transaction file.

On the AP Disbursements form, you enter the secondary credit card that is used to pay the vendor invoice rather than the bank code. You have the option to enter the transaction ID rather than the payment (check) number.

You can enter a transaction ID for the charge if you are entering an AP disbursement after the charge has appeared on the credit card statement. This is the transaction ID from your credit card statement. This allows the charge to be reconciled automatically in the Credit Card Reconciliation application if you import charges from credit card statements. If you do not have a transaction ID when you enter the disbursement, you can enter one in the Credit Card Reconciliation application when you reconcile the credit card statement.

Posting

When you post AP disbursements for credit card payments, DPS makes the following entries for accrual based accounting:

• Debit: The account that is entered for the AP disbursement in the grid on the AP Disbursements form is debited.
• Credit: The company-paid account that is specified in Credit Card Configuration for the secondary credit card is credited.

For cash-basis accounting, no accounts are debited or credited because there were no cash transactions. For cash-basis accounting, the AP disbursements will be included when you create the journal entry in Credit Card Reconciliation.

Multiple Currencies

If you use multiple currencies, the payment currency of the AP disbursement will be the credit card currency that is defined in Credit Card Configuration for the selected credit card.

Voiding a Credit Card Payment

If you need to reverse an AP disbursement for a credit card payment, you must enter a negative AP disbursement with the same information as the original disbursement. You cannot void AP disbursements for credit card payments in Accounting > Void Payment.

Preventing Credit Card Charges from Being Entered in Both AP Disbursements and Expense Reports

This applies if you import charges for a credit card. from your credit card company into DPS It is possible to add an imported charge to an expense report as well as enter an AP disbursement for it, thus creating duplicate entries.

When you import a charge from your credit card company into DPS, the charge displays in the Credit Card pane on the Expense Report form in Time & Expense > Expense Report for any expense report user who is authorized to use the credit card. If the charge was already entered as an AP disbursement (with a payment method of credit card) or you intend to enter it as an AP disbursement paid by credit card, to ensure that an employee does not add the charge to an expense report, clear the imported charge on the Charges tab in Accounting > Credit Cards > Credit Card Reconciliation. This prevents it from displaying in the Credit Card pane in Expense Report.

If both an AP disbursement and an expense report are entered for the same charge, the amount in the Posted Amount field will be double the amount in the Imported Amount field on the Charges tab in Credit Card Reconciliation. To correct this duplication, reverse one of the entries.