Review how to account for group expenses using an agency credit card
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When using the agency credit card to pay for group expenses, two things need to be accomplished. One, you need to track that the credit card has been used; and two, you need to track the payment as an expense to the group.
- Enter a Payment Made with Payment Method of Other. Set the Profile Type to Vendor, and for the name use either the actual vendor the payment went to, or use the group vendor. Don’t forget to use the Payment Group field to enter the Group Name.
- When prompted, create a voucher and attach it to the group.
- When prompted, create a journal entry to credit the "Group Payments on Agency CC" Liability account.
- When you pay the credit card bill, debit the "Group Payments on Agency CC" Liability account.
Note: If the agency has a large number of groups to track, it may be helpful to create a separate Group Liability account named “Group Payments on Agency CC”.
You can use either one vendor profile for the group, or you can use the actual vendor the payment is going to.
Please Note: The recommendations contained in this document are designed to allow your Trams Back Office program produce information in a manner which Trams and ClientBase Products and Services believe to be useful to a travel agency. However, Trams and ClientBase Products and Services, make no representation or warranty that the recommendations, if applied, will conform to generally accepted accounting and auditing practices or principals or to any type of financial reporting requirements. To the extent that any reports generated by Trams Back Office are used for reporting purposes, including tax reporting, we strongly suggest that you review these recommendations with your certified public accountant or tax advisor as applicable.