How to process credit card transactions (purchases on credit)?
vrrr
Member Posts: 4 ✭
Hi,
Could someone advise on the best practices in the following situation:
Currently, I have my bank account in Recon One and do the manual data upload via CSV to get the data in there. I also have a credit card that I use for purchases for my business that is not in Reckon One.
When I purchase a business expense on the credit card, I have been entering in the transaction into Reckon One only when I pay the same amount from my bank account to the credit card.
eg.) I purchase a part on my credit card on 1 Dec 2015 for $100 and on 2 Dec for $200. At the end of the month on 30 Dec, I go through my credit card statement and make payments to my credit card from my bank account for the exact same amounts i.e I pay $100 and $200 as 2 separate transactions. If I purchase 10 items on my credit card during the month, I will make 10 repayments for the same amounts.I will also make an extra payment for the interest to my credit card. This is quite laborious.
In Reckon One I allocate these bank payments accordingly with the supplier contact and transaction allocation/chart of accounts information e.g 30 Dec, Dick Smith Electronics, Computer Hardware, $100.
The problem I have is that the date of the transaction in Reckon One is always at the end of the month (on the 30 Dec when I make my bulk repayments) - not on the day when the actual purchase was made using the credit card.
Can someone advise the process to approach this in a better way - i.e Would it be better to link my credit card into Reckon One, then when I import my credit card CSV transactions, I can allocate them how I do now - eg. purchase from a supplier, 1 Dec, Dick Smith Electronics, Computer Hardware, $100.
At the end of the month, ideally, I would like to make 1 payment from my bank account to my credit card being for the items in full plus any interest. How do I classify this single lump payment in Reckon One? i.e I will have one bank transaction on 30 Dec of say $900 going to my credit card.
Thank you in advance
Could someone advise on the best practices in the following situation:
Currently, I have my bank account in Recon One and do the manual data upload via CSV to get the data in there. I also have a credit card that I use for purchases for my business that is not in Reckon One.
When I purchase a business expense on the credit card, I have been entering in the transaction into Reckon One only when I pay the same amount from my bank account to the credit card.
eg.) I purchase a part on my credit card on 1 Dec 2015 for $100 and on 2 Dec for $200. At the end of the month on 30 Dec, I go through my credit card statement and make payments to my credit card from my bank account for the exact same amounts i.e I pay $100 and $200 as 2 separate transactions. If I purchase 10 items on my credit card during the month, I will make 10 repayments for the same amounts.I will also make an extra payment for the interest to my credit card. This is quite laborious.
In Reckon One I allocate these bank payments accordingly with the supplier contact and transaction allocation/chart of accounts information e.g 30 Dec, Dick Smith Electronics, Computer Hardware, $100.
The problem I have is that the date of the transaction in Reckon One is always at the end of the month (on the 30 Dec when I make my bulk repayments) - not on the day when the actual purchase was made using the credit card.
Can someone advise the process to approach this in a better way - i.e Would it be better to link my credit card into Reckon One, then when I import my credit card CSV transactions, I can allocate them how I do now - eg. purchase from a supplier, 1 Dec, Dick Smith Electronics, Computer Hardware, $100.
At the end of the month, ideally, I would like to make 1 payment from my bank account to my credit card being for the items in full plus any interest. How do I classify this single lump payment in Reckon One? i.e I will have one bank transaction on 30 Dec of say $900 going to my credit card.
Thank you in advance
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Comments
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Yes, in Recon One I have only added one bank account - Bank. My credit card is not in reckon one. At the end of the month I go through my credit card statement and make individual repayments from my bank account to my credit card.
Would it be better to add my credit card in reckon one? Then, when I make a credit card purchase on say 1 Dec, I will have the correct date information stored in reckon one. At the end of the month, I can make a lump sum payment from my bank account to my credit card. In Reckon one, how do I classify this lump payment? do I do an 'Allocate - Payment' or 'Allocate Transfer' to my credit card liability account? I would think an 'Allocate transfer' to my credit card account in Reckon One. This should reduce the credit card liability back to zero (assuming I make payment in full at the end of the month) correct?
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Hi,
When you create a bank account you have two types, Bank or Credit card.
Bank type accounts are assets. Expenses to the account will decrease the account balance & income to the account will increase the balance.
Credit card type accounts are liabilities. Expense to the account will increase the account balance & income to the account will decrease the account balance.
The ideal situation would be to have an account setup for each & record all of your transactions in the respective accounts.
In regards to the scenario where you move funds from your bank account to your credit card account (i.e. paying your credit card bill), you would just enter this as a transfer in the application.0 -
Hi any advice on how to move one credit card credit (result of a refund which has left the account in credit) to another credit card account? As the bank applied the credit to the whole credit card account - whereas my Reckon account is broken down into 5 individual cards. Any help will be appreciated
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