There are different ways of processing credit card transactions in Intacct, depending on how the credit cards are used. We will outline those here.
The question as to whether or not to set up a credit card account in Intacct depends on how it is used. If you do not use the card to pay company bills and do not need to reconcile the credit card, then these expenses can be recorded as journal entries. The entries will debit the various expense accounts and credit the credit card liability account. This is the simplest method. Payments can also be recorded as journal entries.
Setting Up Credit Cards in Intacct
If you do use credit cards to pay company bills and/or need to reconcile it to the credit card statement, then the credit card has to be set up in Cash Management.
First, how do you set up a credit card account in Intacct? It’s very similar to a bank account with a couple of exceptions.
You start by going to Cash Management>Credit Card, and click the plus sign to add.
- The ID should be somewhat descriptive – a common naming convention is the bank name with the last 4 digits of the credit card number.
- Choose a card type (Visa, AMEX, etc).
- Enter the expiration month and year.
- The other fields are all optional.
The accounting information is in the bottom section.
- The credit card offset account is the liability account in General Ledger. This must be unique and only used for this credit card.
- The default entity is the entity that owns the credit card, much as cash accounts belong to a single entity.
- The vendor ID is the vendor for the credit card. Only one vendor can be assigned to one credit card – it cannot be assigned to multiple cards. This vendor is used for the charge payoff transaction.
- The remaining fields are optional and can be chosen from the dropdowns.
Recording credit card transactions in intacct
Next, how are credit card transactions recorded in Intacct? Again, there are different methods to do this. These are outlined below.
For Few Transactions:
The first method is to key them in manually. This is done in Cash Management>Credit card transactions:
- Click the plus sign to add.
- Select the Credit card from the dropdown.
- Enter the date of the transaction.
- The Payee, description and other fields are optional.
- In the entries section, select the GL account for the expense, enter the amount of the charge, and fill in the relevant dimensions.
- Once all information has been entered, click Save at upper right.
This method is useful when there are only a few transactions that need to be entered.
For Multiple Transactions:
When multiple transactions are involved, the most efficient method is to import them. The steps to import them are outlined below.
- First you need to download the import template for credit card transactions. This is found in Company>Setup>Import data. The credit card transactions template is located in the Cash Management section.
- Populate the template with the credit card ID and date. Payee info and description are optional. All transactions start with line number 1, and if there are multiple lines increase each line by 1. Start the line numbers over at 1 for each new transaction.
- Enter the amount for each line, along with the relevant dimension info.
- Save the file as a CSV.
- To import the file, go to Cash Management and click on Credit card transactions to go to the listing. Click Import at upper right.
- The best method is to click the “Process offline” box, so that if there are any import errors the error file will be emailed to you.
- Select your file and then click Import. You will receive an email with the results.
You can also connect your credit card to the banking cloud, so that charge transactions are automatically downloaded from the credit card provider. Creation rules can be created in Cash Management to automatically record these in Intacct. Creation rules are not covered in this article, so please consult the Intacct help for guidance on that topic.
Creating a Charge payoff
The last step in credit card processing is creating a Charge Payoff. This step creates a bill to the credit card vendor in Accounts Payable. We recommend using the charge payoff for both paying and reconciling the credit card.
To create a charge payoff, navigate to Cash Management>Credit Card Transactions>Charge payoffs:
- Click the plus sign to add a new payoff.
- Select the credit card from the dropdown.
- Enter a date – this will be the date of the bill in Accounts Payable.
- For the date range, you can ignore the beginning date and just populate the ending date. The ending date should match the date of your credit card statement. This will give all transactions posted through that date.
- Click Apply filters on the right.
- The screen will populate with all transactions through that date that have not yet been included in a charge payoff.
- Review the listing, and if there are any transactions on your credit card statement that do not appear in the list, exit the screen without saving and record the needed transactions.
- In the charge payoff screen, you can either select all transactions to be included or select them individually using the checkboxes on the right (this is very similar to the Pay bills screen in AP).
- Once all necessary items have been selected, click “Post” at upper right.
- There will now be a bill in Accounts Payable that is payable to the credit card vendor.
This is the complete cycle for credit card processing. Please contact RKL eSolutions if you have any questions.
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