Review the entries to account for using the agency credit card to pay for agency expenses.
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Ck/CC No: Agency Credit Card Number
Vendor: (All) (If you use multiple Agency Credit cards, they can be tied together with a UDID for reporting).
When using the agency credit card to pay expenses, there are two main ways to account for this in Trams Back Office. The first way is to account for the items when the agency pays the credit card bill (Cash Basis). The second way is to account for the expense when the charge is made and carry the payable until the credit card bill is paid (Accrual Basis).
Scenario One:
Accounting for the expense when the credit card bill is paid. During the course of the month, the agency has paid various expenses, using the agency credit card. When the credit card statement is received, the agency wants to itemize the separate expenses.
American Express Statement
| Office Supply Store | $325.00 |
| ABC Printing | $75.00 |
| Parking | $250.00 |
| Light Company | $45.00 |
| Total Charges: | $695.00 |
- Enter a payment made, using Profile Type of Other. for the full amount of the statement.
2. When prompted, create a journal entry accounting for each expense. The system automatically enters a credit to the Checking account. Enter each charge to debit an expense account.
Scenario Two:
Accounting for expenses as charges are made, not when the statement is paid. To account for expenses when the charges are made, use the Operating Payable feature in Trams Back Office.
1. When the charge is made, enter a payable (go to Payments/Create Payable), entering the amount of the charge in the amount field, with the date entered being the date you are creating the payable. In the date payable field enter the anticipated date that you will be paying the credit card bill.
2. When prompted for a journal entry, the Operating Expense Payable account is automatically credited. Create a journal entry to debit the appropriate expense account.
3. When it is time to pay the credit card bill, query the payables.
4. Once the payables are displayed, hold the ctrl key; click on each payable to be paid and Issue Check.
The charges are totaled and a Payment Made is created for the total amount.
Click OK to save the payment. The journal entry is created for you to credit the checking account and debit the Operating Expense Payable Account.
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.