04. Accounting of booking expenses & making payments against company credit card
Scenario: different type of expenses made through credit card by the authorized personnel for the company. These expenses may be purchases of assets like mobile phone or laptop, payment against hotel accommodation, air fare, payment for company web domain etc. Invoices to be booked against every expenses and payment will be released to the Credit Card issuing organization.
A. Configuration: create a new account head in the name of credit card. Add card no as suffix for easy identification
Ledger name |
Type |
Group ## |
DBS corporate credit card - 00875274 |
General Ledger |
EQUITY AND LIABILITIES>>CURRENT LIABILITIES>>SHORT TERM BORROWINGS>>RELATED PARTIES |
In case having multiple Credit Cards, card number wise sub-ledgers can be created under a control account named ‘Corporate Credit Cards’ [classification: normal] belongs to above mentioned group
B. Expense booking against every card usage: enter Non store purchase for booking expenses against every invoice (this will be a normal bill booking process, apply GST input if applicable/eligible)
Non Store Purchase posting would be as below: |
||||
Invoice # |
A/c Head |
Parent A/c Head |
Debit Amount |
Credit Amount |
Invoice -1 |
Travelling Expenses |
|
10,000.00 |
|
K N Travels |
Sundry Creditors |
|
10,000.00 |
|
Invoice -2 |
Staff welfare |
|
17,000.00 |
|
Amaya Hospitality Private Limited |
Sundry Creditors |
|
20,060.00 |
|
CGST credit Available |
|
1,530.00 |
|
|
SGST credit Available |
|
1,530.00 |
|
|
C. Creditor liability will nullify on receiving of credit card statement: enter journal voucher to nullify creditors liability
Journal Voucher posting would be as below: |
|||
A/c Head |
Parent A/c Head |
Debit Amount |
Credit Amount |
K N Travels |
Sundry Creditors |
10,000.00 |
|
Amaya Hospitality Private Limited |
Sundry Creditors |
20,060.00 |
|
DBS corporate credit card - 00875274 |
|
|
30,060.00 |
D. Making payment of credit card outstanding: enter payment voucher against Credit Card monthly statement
Payment posting would be as below: |
|||
A/c Head |
Parent A/c Head |
Debit Amount |
Credit Amount |
DBS corporate credit card - 00875274 |
30,060.00 |
|
|
ICICI Bank c/a - 3095620175 |
|
30,060.00 |
|
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