Record credit card purchases in Sage 50 Accounting


How can I record credit card purchases for my business?

Products: Sage 50—U.S. Edition


Setup credit cards for purchase

Record payments made with credit card

Record credit card payments


Section I: Set Up the Credit Card General Ledger Accounts

Click Maintain, Chart Of Accounts

Set up the account for making credit card purchases: Enter an Account ID

Enter a Description (for example, Visa Payable)

Set Account Type to Other Current Liabilities

Click Save & New

Set up an account for expenses related to the credit card (interest, fees, etc.): Enter an Account ID

Enter a Description (for example, Visa Expense)

Set Account Type to Expense

Click Save

Close Maintain Chart of Accounts

Section II: Set Up a Credit Card Vendor

Click Maintain, Vendors

Enter a Vendor ID

Note: If your company also accepts credit card payments from customers, you may want to enter a separate vendor ID to distinguish the two types of credit card vendors (for example, Visa Purchases and Visa Sales) to make account reconciliation easier to manage.

Enter a vendor Name

Enter additional information as needed on the General tab

Select the credit card liability account created in Section I as the Expense Account

Click Save, then close Maintain Vendors

Section III: Enter Credit Card Purchases

To record credit card purchases, you will pay the vendor using the credit card liability account rather than a cash account. Later, you will pay the credit card vendor using the cash account.

Click Tasks, Payments

Select a Vendor ID

Enter a Check/Reference No. (it is suggested to use the date followed by a sequential number; for example, 031512-1)

Enter the Date

Select the credit card liability account from Section I as the Cash account

Note: If only cash accounts are listed, see Article 10670, "General ledger (GL) account field is missing on task windows"

Complete the remainder of the payment, making sure to enter a description that identifies the purpose of the purchase

Click Save

Note: If you receive the following message, You have selected an account with an account type that is not typically used for the Cash Account on this transaction.  Do you want to save the transaction with this account anyway?, click Yes

Section IV: Pay Credit Card Vendor

Click Tasks, Payments

Select the credit card Vendor ID from Section II

If recording a payment made outside of Sage 50, enter a Check Number; otherwise, leave Check Number blank

Enter the Date

Select a Cash account

Note: This should be an actual cash account

On the first line on the Apply to Expenses tab, enter a Description if desired

In the GL Account field, select the credit card liability account from Section I

Note: If you have the Hide General Ledger Accounts global option activated, Sage 50 will not display the G/L account field in this window.

Enter the amount being paid towards the principle

On the next line, enter a Description if desired

In the GL Account field, select the credit card expense account from Section I

Enter the amount being paid towards the interest and/or fees

Click Save or Print

Section V: Reconcile Credit Card Statements (Optional)

If needed, you can reconcile credit card statements with your records before making monthly payments.

Click Tasks, Account Reconciliation

Select the credit card liability account as the Account to Reconcile

Because the balance account is a liability, enter a negative statement amount

Clear each purchase listed on your credit card statement

To add finance charges and other transactions listed on your statement that do not appear, select the Adjust button; enter your adjustments, then click OK

Enter additional withdrawal or deposit adjustments during account reconciliation

When finished reconciling your statement, click OK

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