Title: Unanet Bank Reconciliation for Credit Cards
The Unanet Bank Reconciliation feature can easily be used to reconcile Credit Card expenditures and other accounts.
What’s covered in this document:
Create Liability Account
This liability account will capture the credit card payable amount as part of the expense report cost post. A recommended best practice is to call this account "Amex Card Payable" or something similar in order to distinguish its purpose. Make the Financials Parent the Accounts Payable account.
Create Payment Method
Create a Payment Method for employees to use when entering corporate card expenses on an expense report. The Payment Method will be associated with the same general ledger account.
Enter the credit card liability account as the posting group account on the Payment Method.
This will ensure that when an employee completes an Expense Voucher on which they use this credit card, the offset to the expense charges will credit the account that you wish to reconcile.
In addition to charges from Expense Reports, there can be charges made to the account through financial documents such as Vendor Invoices or Journal Entries.
Set up Credit Card as Bank Account
A Bank Account needs to be created and linked to the credit card payable account. This Bank Account is used exclusively for allowing a reconciliation to be performed on the credit card payable account within Unanet.
In order to utilize the bank reconciliation feature for credit cards or other accounts you must first set that account up as a "bank account" with a type of "Other." In the bank account setup, the credit card (or other account) is associated with a general ledger Account and Organization.
Update the Posting Group
The "Expense Report Offset - Non-Reimbursable" account category in the Posting Group will need to be updated to source the account from Payment Method.
You will want to make sure that ALL non-Reimbursable "Expense Reports (P&R)" Payment Methods have a posting group account assigned.
Enter and Pay Credit Card Vendor Bill
When the credit card vendor bill is received, enter it as a Vendor Invoice in Unanet against the credit card liability account.
The account in the screenshot below (20.03.02 - Credit Card Payable) should be changed to 20000 - Amex Card Payable. The posting of the ER credits the 20000 account. The posting of the Vendor Invoice below will debit the account highlighted in yellow. If 20.03.02 is used, as depicted below, the end result will be a debit of $500 in account 20.03.02 that will never be offset. If account 20000 is used in the ACCOUNT field below, it will be debited for $500 and offset the $500 credit created in the Expense Report Cost Post.
Reconcile Credit Card Payable Account
After expense reports are posted and the credit card vendor bill is entered, utilize Unanet's bank account reconciliation functionality to reconcile the credit card payable account.
When the credit card statement is received, create a bank reconciliation to ensure that all of the charges in the statement have been posted to the General Ledger.
First, add a bank reconciliation by going to Financials > General Ledger > Bank Reconciliation and clicking the +Bank Reconciliation link. Add the Credit Card "Bank Account", Statement Date, and Ending Balance. Note: When reconciling liability accounts, you must enter the balance as a negative. This is the amount you owe. The reconciliation will be to the amounts you have charged to that account already.
Any amounts charged to the credit card account (Amex Card) will be available to reconcile against your statement.