Supplier Payment Methods

Question

Hello - We have a process where some of our suppliers are paid via credit card, which we want to process the true invoice through the system, but then will receive an invoice from the credit card company which will reduce cash.

We want the payment of the supplier invoice to hit a liability account, not the cash account, but we do not know how to set it up to work that way. We have a different payment method for this type of transaction, but how do we get it to DR AP, CR Liability account at PAYMENT of these invoices.

Thomas Peterson · Accepted Answer

Hi,Options exist, -  I’ve solved the CC payment process a few different ways. Based on what you describe, the following should fit.What you really need to do is to set up a new cash account (something like CC or credit card). This can / probably should have a unique payment institute (like credit card). If you don’t have a payment method like CC credit card, you should create a payment method - using the payment format of empty.In the payment institute enable the CC payment method (only the CC payment method).Add the CC payment method to the suppliers you plan to pay by CC.In posting control for IP1 (cash) add the new cash account (like credit card) and set the account as a liability.User process - process invoices for the supplier invoice (for the credit card), make the payments using the payment institute CC, selecting the CC related payment method. This payment creates a liability via posting control. Later when the CC statement is received, you cando a direct cash or bank transfer (probably better) to hit the liability account. Best regards,Thomas

meaton421 · Answer

THANK YOU SO MUCH! this worked!only note: in our Posting control it was PP1 - for Cash transactions

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