ShelbyNext Financials: Credit Card Tracking (Course #N211)

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1 ShelbyNext Financials: Credit Card Tracking (Course #N211) Presented by: Dave Heston Shelby Consultant 2017 Shelby Systems, Inc. Other brand and product names are trademarks or registered trademarks of the respective holders.

2 OBJECTIVE This session guides you through the process of using Credit Card Tracking in Accounts Payable. This session presents the following topics: Benefits of using Credit Card Tracking How to set up Credit Card Tracking How to Enter credit card transactions Using Credit Card transaction Import feature How to Reverse posted credit card transactions why and when Making sure you balance to the General Ledger How to Reconcile monthly credit card statements Using the Import Credit Card Statement feature How to Make a payment Some Things to Think About: Modify Credit Card Tracking allows you to enter and track credit cards. You can enter transactions, reconcile, and finalize. This tool allows you to monitor charges made by staff members to one or multiple credit cards, scan receipts and supporting documents associated with a transaction, reconcile transactions, and pay the credit card bill. Do you track single or multiple credit card accounts? Do multiple users use the same credit card account? What Liability accounts do you need to set up? How are you going to collect credit card receipts? How often do you enter credit card receipts daily, weekly or monthly? Credit Card receipts are entered as separate transactions to Vendor accounts. This creates an audit trail. Are credit card receipts entered to separate Vendor accounts or to a onetime Vendor? (tip from Dave and Betty) When do you reconcile to the monthly credit card statement? Are payments made by check or EFT? 2

3 Setting up Credit Cards Set up a credit card liability account in your General Ledger for each credit card. It is recommended that you set up a separate liability account for each credit card that you are using so that you have a way of tracking activity in the General Ledger for each card. You can use separate General Ledger account numbers or sub accounts. The following example uses sub accounts: How the Account # field is used to create Journals The Account # field is a Payable Credit Card account that is used as a "wash" account in a similar manner as the Payables Account # specified in Company Information (if you are running on the Accrual Basis). So, if you are running on an Accrual Basis and processing Credit Card transactions, you have two "wash" accounts. Below is a chart that shows how the Payables and the Payables (CC) accounts are used to create your journal entries for both Cash and Accrual basis. The Cash Basis creates two journal entries. The first is when Credit Card Transactions are posted. The expense account is debited and the Payable (CC) account is credited. The second journal is created when payments are processed. The Payables (CC) account is debited, and the bank account is credited. 3

4 The Accrual Basis creates three journal entries. The first journal entry is created when Credit Card Transactions are posted. The Expense account is debited and the Payables (CC) account is credited. The next journal is created when you post transactions. The Payables (CC) account is debited, and the Payables account is credited. And, finally, when you process payments, a journal is created to debit the Payables account and credit the Bank account. Modify Credit Card Information allows you to add new or edit existing credit cards. The following columns are displayed for each credit card on the grid: 1. Balance 2. Users: Hover over the Users icon to see the users set up on the credit card. 3. Note: Hover over the Note icon to preview the notes. 4. Setup: Hover over the Information icon to display the user and time information for when the credit card was set up and last updated. 5. Click the Add New Credit Card link to add a new credit card. 6. Double click on a credit card or click the Edit icon to edit a credit card on the grid. 7. Click the Delete icon by a credit card on the grid to be prompted to delete it. (You can only delete credit cards to which transactions have not been posted.) 8. Select a credit card in the grid and click the Reconcile Transactions button to reconcile that credit card. 4

5 Add a new Credit Card To add a new Credit Card, click on the Add New Credit Card link. 1. Select a General Ledger liability account number. 2. Enter a Description for the credit card. 3. Enter the last four digits of the Credit Card Account Number or some other number that does not reveal the Credit Card account number. 4. Enter the Expiration Date of the credit card. 5. Select Credit Card Vendor by clicking the (not set) link or the Search icon. This displays the Vendor Search window. Select the Vendor that is associated with the Credit Card. You may have to add a Vendor if the vendor is not already in your database. 6. Select Add New Credit Card User. You must have at least one User for each credit card. 1) Select the User by clicking the (not set) link or the Search icon. This displays the Person Search window. Select the Credit Card User and click the Select button. 2) Select whether the user is Active. 3) Additional columns include Active (checked if user is active) and Balance. 4) Click the Apply button to save the changes to that user and start adding another user, or click the OK button to save changes to that user. 7. Enter a Note associated with the Credit Card, if applicable. Sample Credit Card Update 5

6 Sample One Card Single User Sample One Card Multiple Users Sample Note 6

7 Enter a Transaction Processing a Credit Card transaction is very similar to processing a regular Accounts Payable invoice. Transactions are entered as they are received or held and entered periodically as a batch. The main difference is that you select the Credit Card and the User in addition to other needed information. Make sure your Current Financial Settings are correct. Credit Card transactions are posted to the CURRENTLY SELECTED CREDIT CARD. 1. Select the correct Period to post to. 2. Select the correct Bank Account to post to. 3. Select the correct Credit Card to post to. 7

8 From the Accounts Payable menu select Enter > Credit Card Transaction. This takes you to the Person Search page. 1. Search for an individual or organization under the Name field. (By default the search text for Name field searches for last names and organizations. An asterisk (*) is entered to see a list of all vendors.) 2. Select the Vendor for which you are creating the Credit Card transaction. 3. If the Vendor is not in the database, select Add New Vendor. 4. Click the Select button. Hint from Dave and Betty: If you do not need to use specific vendors, set up generic vendors to record Credit Card transactions. 8

9 On the Credit Card Transaction Grid there are three tabs: Details, Attachments, and Note. The Detail Tab is where you put the transaction detail. 1. Credit Card 2. Credit Card User 3. Vendor 4. Enter Reference Number and/or Invoice Number (optional) 5. Enter Date of transaction 6. Enter Total amount of the transaction. The transaction is distributed to multiple General Ledger Accounts later in the process. 7. Enter Account: Review your account distribution once entered. 8. Enter Description of the transaction 9. Enter Project if you are using projects 10. Click Add New icon to add another detail line if needed. You also enter a number and click the Add New Lines icon to add multiple lines at once. 11. If you are using a Distribution for this transaction, select from the drop down list and click the Apply Distribution button. 12. The Link to Purchase Management button is active if there are open Purchase Orders for the vendor selected. 13. When finished, click the Apply button to save the transaction and start entering a new transaction. Click the Update button to save the transaction if no other transactions need to be posted. Click the Reset link to undo all changes since the last time the page was updated. Or click the Cancel link to return to the Unposted Transactions page without saving your changes 9

10 The Attachments Tab (optional) is where you choose a file to attach or scan a receipt. Files such as receipts or other documentation can be stored electronically with the credit card transaction. 1. Click the Add New Attachment link to display a window where you enter a note, attach a file, or scan a receipt. 2. On the Add New Attachment screen you can: a. Add a Note. b. Click the Choose File button by any of the four Add File fields to attach files c. Click the Scan link by Scanned Files to display a window where you paste or scan an image If you do not have a scanner attached you receive the following message. 3. The Note Tab is where you enter a note in the field provided. 10

11 Manage Unposted Credit Card Transactions Under Manage > select Unposted Credit Card Transaction The next screen you see is a filter window. Click Search to show all Unposted Transactions or use the Filter option to limit your search. 11

12 Once you are on the Manage Unposted Credit Card Transactions grid, 1. You can: a. Click the Add New Transaction link to add a new Credit Card transaction (Let us talk about this.) b. Double click on a transaction or click the Edit icon to edit a transaction on the grid c. Click the Delete icon by a transaction in the grid to be prompted to delete that transaction 2. Import Credit Card Transactions Let us talk about this later. 3. (OOPS!) Change Credit Card Select the transactions you want to assign to a different Credit Card and then click the Change Credit Card button to display the Change Credit Card page. (See sample later.) 4. The credit card transactions appear on the grid. The next step is to select the credit card transactions you want to post by clicking the check box next to each transaction that you want to post. You can also select the top box to select all transactions in the grid. 5. Credit Card Transaction Edit Report Click the Credit Card Transaction Edit Report button to run the report. For each transaction selected, all detail is displayed along with the Final Totals. (See sample later.) 6. Post Credit Card Transactions Click the Post Credit Card Transactions button to begin the posting process. Remember to check your Current Financial Settings. 12

13 The Import Credit Card Transactions reads an Excel file that you specify and then imports each row of that file as a credit card transaction. Up to 13 columns of information can be imported. From the Unposted Credit Card Transactions screen: 1. Make sure you have the correct Credit Card selected from the Current Financial Settings. 2. Click on Import Credit Card Transactions. On the Import screen 1. Choose File and confirm the file name. 2. Click Import Give it time; if one of the fields is incorrect, you receive a message. 13

14 The file is imported and displays as a grid. Review the transactions. 1. You can select to View valid or View invalid transactions. Invalid transactions occur when the information from the Excel file does not match the fields in your financial program. After the invalid transaction is corrected, it appears as a valid transaction to be imported. 2. Note: Click the here link to reverse the signs for the transaction amounts. 3. Another option is to click the Clear Credit Card Transactions Import button to clear all transactions, then make the corrections in the Excel file, and then import the file again. 4. After you review the valid and invalid transactions and make any corrections, click the Import button to finish the import process. The imported transactions appear on the Credit Card > Transactions page. At this point you can process these transactions as you normally would. 14

15 Sample Change Credit Card Select the transactions you want to assign to a different Credit Card and then click the Change Credit Card button to display the Change Credit Card page. 1. Select the credit card to which you wish to assign the transaction. 2. Click the Continue button. 3. Click the Close link to return to the previous page without changing the assigned Credit Card. Sample Credit Card Transaction Edit Report This prints in Vendor order. 1. Click Report Preferences on the blue bar above the report preview to access Options for the report. (The extra Report Options are not included on the final report.) 2. If you have changed the Options, click the Run Report button to display an updated report preview. 3. Once the preview is visible, you can navigate through the pages or export in several formats. 4. Click Print to print the report. 5. Click the Close Report button when finished to return to the Unposted Credit Card Transaction page. 15

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17 Post Credit Card Transactions 1. Click Report Preferences on the blue bar above the report preview to access Options for the report. 2. Select the Options to include on the report. 3. If you have changed the Options, click the Run Report button to display an updated report preview. 4. Once the preview displays, you can navigate through the pages or export in several formats. 5. Click Print to print the report. 6. If you do not wish to post your credit card transactions, click the Cancel link to return to the Unposted Credit Card Transactions page. 7. Edit the Posting Date if desired. a. If you are on a Cash Basis, the transactions are posted. Posted transactions can be viewed on the Credit Card > Reconciliation page and the Transaction Inquiry page. b. If you are on an Accrual Basis, enter a Posting Date and click the Finalize Post button; then click the OK button on the Finalize Post window. The transactions are posted, and a journal is then sent to the General Ledger. The Post Directly to General Ledger without Editing option allows you to have your journal entry posted all the way through to the General Ledger. This means you can skip editing and posting the journal entry under Manage Unposted Journals page in the General Ledger. 8. Click the Finalize Post button when finished. 17

18 Sample GL Input Audit Report prints in General Ledger number order 18

19 Finalize Post Sample 1. When saving the entries, make sure the receipt dates, Post to Period, and Posting Date entry all fall within the same month. 2. Click OK to continue. 3. Click Cancel to return to Finalize Post. Accrual Basis Journal Entry Sample When you post, the AP application creates the following journal entry: 1. The Credit Card Liability account is credited for the total. 2. Expense accounts are debited. 19

20 Reverse Credit Card Transaction Reverse Credit Card Transaction allows you to reverse unpaid credit card transactions. (WHY?) From Accounts Payable Home View, select Transaction Inquiry. 1. Select the Bank Account which is the Credit Card Account. 2. Select Credit Card Charges. 3. Select Unpaid. Only Unpaid credit card transactions are reversed. 4. Select Vendor. 5. Select Invoice Date. 6. Click Search. From the Transaction Inquiry: 1. Only Unpaid credit card invoices show under the Status column. 2. To open the invoice click the View Details icon. 20

21 On the Credit Card Details page, click on Reverse Transaction. General Ledger Input Audit for Reversing Accounts Payable Credit Card Transactions Sample 1. Confirm the Current Financial Settings. 2. Click Report Preferences on the blue bar above the report preview to access Options for the report. 3. Select the Report Options as needed. 4. If you have changed the Options, click the Run Report button to display an updated report preview. 5. Note the negative transaction. 6. Once the preview displays, you can export in several formats. 7. Click Print to print the report. 8. Click the Cancel link to return to the Credit Card Details page without reversing the transaction, or click the Reverse Transaction button to finalize the reverse procedure and put the transaction back in Manage Unposted Credit Card Transactions. This also creates a journal entry that reverses the transaction. (See sample later.) 21

22 Journal Entry Sample 1. Note the Description. 2. Credit to the original expense account 3. Debit to Credit Card liability account To make any desired changes or delete the original transaction return to the Manage Unposted Credit Card Transactions. (What did you talk about earlier?) 1. If you want to post the transaction again, make any desired changes by clicking the Edit icon; make the changes and update the transaction. 2. Once you have made any changes to the transaction, run the Credit Card Transaction Edit Report button. 3. When you are ready to finalize the corrected transaction, click the Post Credit Card Transaction button. 4. To delete the transaction, click the Delete icon to be prompted to remove the transaction. 22

23 Balance to the General Ledger Run a Balance Sheet report for the current period and note the amount listed under the credit card liability account. From the Accounts Payable menu, select View > Transaction Inquiry. On the Filters area: 1. Under Bank Account choose the correct credit card. 2. Check Credit Card Charges. 3. Check Unpaid. 4. Check Upaid As Of. 5. Check either Date or Period. 6. Leave Vendor not set. 7. Click Search. 23

24 Transaction Inquiry Report Sample 1. Note Total of $ (HINT: matches the amount on the Balance Sheet) 2. Click Print Transaction Inquiry Report if you need to document. 24

25 Reconcile Credit Card Statements Credit Card Reconciliation Update allows you to reconcile your credit card transactions for a selected statement period. Check your Current Financial Settings FIRST to make sure the correct Credit Card is selected. Under Manage, select Credit Card Statements: On the Credit Card Statement Grid (Existing statements display in the grid.): 1. Confirm that you have selected the correct credit card. 2. Click on Add New Statement. On the next screen, enter Reconcile Details: 1. Enter Statement Date. 2. Enter Ending Balance. 3. Click OK. NOTE: When entering the first statement date for a credit card, you also need to specify a Starting Balance. 25

26 Reconciliation Update Tab 1. Charges are on the left. 2. Payments/Credits are on the right. 3. Click the Note link to add a note. 4. Click the Attachment link to display a window where you add a note, and click the Choose File button by any of the four Add File links to attach files. You also click the Scan link by Scanned Files to display a window where you paste or scan an image (hint: the statement). 5. Select items in the Charges and Payments/Credits sections to mark them as having cleared. 6. You can also choose to import cleared items by clicking the Import Credit Card Statement link. You talk about this later. 7. After you have marked all cleared transactions, the Difference field is zero. 8. The Statement Starting Balance and the Calculated Ending Balance fields match the amounts shown on your current credit card statement. 9. Click View Reconciliation Report to display a preview report. (See sample later.) 10. Click the Apply and Finish Later button to save your progress and return later without finalizing (saves the check marks). 11. Click the Finish button to finalize the statement period, Reset to undo all the changes since last time the page was updated, or Cancel to discard all changes. 26

27 Import Credit Card Statement You can also choose to import cleared items by clicking the Import Credit Card Statement link. Click the Choose File button and select your import file. The program accepts.ofx,.qif,.qfx, and Excel formats. Click the Import button to display the Credit Card Reconciliation Statement Import Report. This report displays all items in the imported file and whether they were imported. Click the Close Report button to return to the Credit Card Reconciliation page. All items that match (ItemDate and Amount, or ItemNumber and Amount) in the imported file are marked as cleared. If you import an Excel file, it can have any name but must be saved in the.xslx format and contain these columns: Date (or ItemDate) and Amount. View Reconciliation Reports Once the preview displays, you can: 1. Navigate through the pages. 2. Export to several formats. 3. Print. 4. Click the Close Report button when finished to return to the Reconciliation Update page. Current Summary shows the Opening Balance, Payments/Credits, Charges, and Ending Balance. 27

28 Cleared Items shows the Item #, Date, Description, and Amount for each cleared item. Credit Card Reconciliation Payment 1. If the Statement Ending Balance and Calculated Ending Balance fields do not match, you are prompted that you are not in balance for the statement. Click the OK button to continue finalizing or the Cancel link to return to the Update page and make corrections. 2. When the Finish button is clicked, the Credit Card Reconciliation Payment page displays. 28

29 On the Credit Card Reconciliation Payment page you have the option of setting up a payment to the selected credit card for all or part of the statement ending balance. 1. Schedule Invoice to Pay creates an invoice using the date in the Due Date field and the amount in the Payment Amount field and places it in Manage Unposted Transactions. 2. Create a Manual Check This option creates a manual check transaction using the information in the Check Number, Check Date, and Payment Amount fields and places it in Manage Unposted Transactions. (Let us talk about this.) 3. Make No Payment Now This option does not create a transaction. (If your ending balance is zero or a credit, you normally select the option to Make No Payment Now.) 4. After making your selection and entering the appropriate information in the field, click the OK button to finish the reconciliation process or the Cancel link to return to the Update page without finalizing the reconciliation. 29

30 Make a Payment If you selected Schedule Invoice to Pay when saving the invoice, the entry in Post Transactions debits the credit card liability account and credits Accounts Payable. A transaction is sent to Manage Payment Processing where it is paid with other outstanding invoices. Go to Manage Unposted Transactions and process as a normal Accounts Payable invoice. If you need to make changes to the invoice, click the edit icon. If you selected Create a Manual Check using a check number that you entered in the Check # field (which is also used for electronic payment) and the amount in the Payment Amount field, when you save the entry in Post Transaction, the system debits the credit card liability account and credits the cash account. If you selected Make No Payment Now, no invoice is created. 30

31 You can also create an invoice to the credit card vendor. The Apply to Credit Card option becomes active when a credit card vendor is selected. (Let us talk about this.) 1. Make sure you are in the correct Bank Account. 2. Select the credit card Vendor. 3. Select the credit card for which you are creating the transaction from the Apply to Credit Card drop down list. 4. Create an Invoice with a credit card selected and then pay that invoice in order to have the payment show up in Credit Card Reconciliation. 5. On the Details tab the Account is the liability account number for the selected credit card. 31

32 Dave Heston Shelby Consultant Dave served as an accountant for a Phoenix based CPA firm before he joined the staff of his church in Over the last 40 years Dave has served as an administrator at three churches in the Phoenix metro area, and he recently retired as the Director of Finance for Phoenix Seminary in AZ. Dave has been a Shelby user since 1985 and also trains as a Shelby Consultant on Shelby v.5 and ShelbyNext.