I am setting up a new VISA account and I will be paying by automatic withdrawal.

Since I have TB, I would like to continue to enter the VISA transactions through A/P.

Maybe I'm just not very creative or resourceful today.....how can I do this?

Thanks.

Hi, Bal,

Can you be a little more specific about what it is you are trying to do?

The bank will automatically withdraw funds from the bank to cover the VISA bill.

Some of the VISA transactions are project related and some are corporate. Previously, we just posted all the transactions to AP, pulled the project expenses into TB and into the GL and issued a cheque.

Now, the Visa bill is never really a payable because it is automatically paid BUT I'd like to be able to do the posting in payables so I don't have to post some transactions to TB and some to the GL.

Hi, Bal,

From what you've told me, it doesn't seem there's any reason why you can't still use AP if that's what you want to do. As you say, the VISA is being paid out of the bank still; it's just that the actual method has changed to an automatic withdrawal.

You could record the VISA as you always have and enter the payment into AP without actually producing a cheque.

Do you or does someone else in your company do the entry to GL? If someone else, you might want to discuss with them what you are doing so they don't end up entering it as a separate GL entry.

How do I enter it into AP without issuing a cheque ( and without running up a huge payable)?

Well, in essence you are still creating the payment in a cheque batch but you are not producing/printing a cheque (uncheck the box).

Hi bal

I get this question a lot. The technically correct way to do it is to create a bank called VISA, and for the GL account use a VISA payable account instead of a cash account. This is especially necessary if you are not paying the VISA bill in full.

Enter invoices as usual.

When you get the VISA bill, you enter an invoice to the VISA vendor for the amount you want to pay, debiting the VISA payable account, and you cut the check as normal.

Then you do a fake check run using the VISA bank, paying off the invoices that appear on the statement - there may be as many fake checks as there are invoices being paid. I recommend doing it as a manual check batch. When you post the check batch, the debit will go to AP and the credit to VISA payable. Don't worry about printing the fake checks, nor about the check sequence, nor about reconciling them.

The balance in the VISA payable account will either be zero if you pay your statement in full, or it will be the amount you owe VISA if you don't.

Steve

Bal:

Here is a document that might help. It outlines a process that is similar to the one described by Steve.

Processing Adagio Payables Payments on a Credit Card.

You may find that not all the details listed in the document apply to your situation, but the overall data flow likely will.