Revised 07/24/2026

• Set Up
• Making Payments with a Credit Card
• Pay Off Credit Card
• G/L Entries and Bank Account Balance
• Reconciling Credit Card Bank Accounts

  Set Up

Create a liability G/L account for the Credit Card.
Account Type – Balance Sheet Account
Normal Balance – Credit
Period end closing type – Non-Closing Account


Under Cash Management>Bank Accounts, create a Bank Account being sure to include the address of the credit card company.

On the Bank Account, within the Bank Acc. Posting Group field create a new posting group.

 

Give your Posting Group the Code value as the No. used on the Bank Account in step 2. Assign the G/L Account that was created in step 1.

Return to the home screen and select Post Payments. Create a new Payment Journal and assign the Bank Account Created in step 2 as the Bal. Account No.

  Making Payments with a Credit Card

Enter Purchase Invoices as normal using expense accounts and post when complete.

Open Post Payments>Credit Card

Select Prepare>Suggest Vendor Payments, filter for appropriate items to be paid with credit card, post payments when complete.

 

  Pay Off Credit Card

Select Post Payments>and choose the Bank Account that will be paying off the credit card.

Manually enter the payment into the payment journal. Start by setting the Account Type to Bank Account, and then choosing your credit card as the Account No.

Finish by entering the Posting Date and Document Date, Fund, Department, Amount, Memo, and Bank Payment Type.

If needed, print a check, otherwise Post when complete.

 

  G/L Entries and Bank Account Balance

Impact on G/L Account Balances

The result of transactions should be an increase in expense account balances and a decrease in the asset account used to pay off the credit card. The image below tracks the example used on the previous page through the process.

Red – expense incurred and accounts payable increased by posting the Purchase InvoiceGreen – payment made by credit card moves the accounts payable balance to our credit card payable balanceBlue – A manual payment journal entry records the payment of the credit card and decreases the balances of the credit card payable and checking account.

Bank Account Balance and Reconciliation

The bank account created for the credit card will show the current pay off balance on the credit card.



Additionally, we can now use the Bank Reconciliation process for our credit card: clearing charges and payments as well as make adjustments to record interest charges.

  Reconciling Credit Card Bank Accounts

When reconciling a credit card account, both the Balance Last Statement and Statement Ending Balance fields should be entered as negative/credit values. Unlike a standard bank account, a credit card account represents a liability, meaning the balance is owed rather than owned. If these balances are entered as positive numbers, the reconciliation will not calculate correctly.

For more information on Bank Account Reconciliation, please see Bank Account Reconciliation Knowledge Article