Cash-Basis Journal Entry for Credit Card Statements
If you use cash-basis accounting, you can automatically create a cash-basis journal entry for all the cleared company-paid charges on a credit card statement after a statement is completely reconciled.
You create the journal entry from the Create Journal Entry tab in . Ideally, you create the journal entry as the last step before you close a reconciled statement.
A journal entry is automatically created in the active period for each secondary credit card that makes up a primary credit card. One transaction file is created for the journal entries for each secondary credit card.
Debits and Credits for the Journal Entry
- Debit — The expense account and project/phase/task that is entered for a company-paid charge on the original expense report and AP disbursement is debited.
- Credit — The company-paid account and project/phase/task that is specified for the credit card in Credit Card Configuration is credited.
When to Create the Journal Entry
You create the journal entries only once after a statement is completely reconciled. If you create and post a journal entry before all charges are reconciled, it will be missing some amounts for the journal entry. If you then create and post additional journal entries for a statement, this produces duplicate amounts because the repeated journal entry includes all cleared charges, not just the previously uncleared charges.
Viewing and Posting the Journal Entry
After the journal entry is created, you can review it in . You post it in .
Deleting or Undoing a Journal Entry
If you delete or undo the cash-basis journal entry for a credit card statement, you can create the journal entry again, and the amounts will not be duplicated.
Multicompany
If you have multiple companies in Vision, the journal entry posting can create intercompany transactions.
Multicurrency
- The journal entry transaction currency is the credit card currency.
- The date is the original transaction date.