Hello all,
I have a scenario where I would like to record a payment against a PO via credit card as the vendor required upfront costs. We then have the AMEX defined as a liability for this so, then we pay the AMEX. So its like instead of debiting the record again I would like to debit the liability.
How can I achieve this? Is it like under the I define the AMEX as a cash A/c under a liability GL account?
Let me know your thoughts on this.
Thanks.
Best answer by Laura03
Good morning,
I recommend adding the Amex Liability account as a Cash Account in Banking module, connect an Amex or Credit Card Payment Method to the new Cash Account.
Next, from the PO, click to Enter Prepayment and record the payment using the new Amex (liability) bank account and Amex/CC Payment Method. Amex will be credited for the amount of the Prepayment, with debit usually to the Prepayment account listed on the Vendor.
When Amex bill is paid, the Amex liability account will be debited.
At the end of the month, the Amex Bank Account may be reconciled like other bank accounts, including signing up for a Bank Feed to pull in cleared transactions from Amex for efficient matching and reconciliation.
Laura
+19Good morning,
I recommend adding the Amex Liability account as a Cash Account in Banking module, connect an Amex or Credit Card Payment Method to the new Cash Account.
Next, from the PO, click to Enter Prepayment and record the payment using the new Amex (liability) bank account and Amex/CC Payment Method. Amex will be credited for the amount of the Prepayment, with debit usually to the Prepayment account listed on the Vendor.
When Amex bill is paid, the Amex liability account will be debited.
At the end of the month, the Amex Bank Account may be reconciled like other bank accounts, including signing up for a Bank Feed to pull in cleared transactions from Amex for efficient matching and reconciliation.
Laura
Good morning,
I recommend adding the Amex Liability account as a Cash Account in Banking module, connect an Amex or Credit Card Payment Method to the new Cash Account.
Next, from the PO, click to Enter Prepayment and record the payment using the new Amex (liability) bank account and Amex/CC Payment Method. Amex will be credited for the amount of the Prepayment, with debit usually to the Prepayment account listed on the Vendor.
When Amex bill is paid, the Amex liability account will be debited.
At the end of the month, the Amex Bank Account may be reconciled like other bank accounts, including signing up for a Bank Feed to pull in cleared transactions from Amex for efficient matching and reconciliation.
Laura
So
+19Hello,
Yes.
Laura
Hello
I don’t understand this part of your question: “Amex bill is not a real bill.”
In my experience, American Express bills are real bills that debit a liability account (such as Credit card clearing” and Credit AP (another liability, Accounts Payable Trade). When the Amex Bill is paid, this payment debits AP and credits a different cash account, such as Checking Account, or Operating Account.
Laura
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
