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Title: Unanet Bank Reconciliation for Credit Cards

Brief description:

The Unanet Bank Reconciliation feature can easily be used to reconcile Credit Card expenditures and other accounts.

Assumptions:

  • Credit card property - Enable Credit Card Functionality - is enabled. (Admin > Properties > Expense > General > Credit Card Settings)
  • Person Profile has been updated with credit card information.
  • Vendor Organization including vendor profile has been created for the credit card vendor.

What’s covered in this document:

Initial Setup

Create Liability Account

Navigate to Admin > Setup > Accounting > Accounts.

  • This account will capture the credit card payable amount as part of the expense report cost post.
  • Be sure to select "Liability" for the Account Type.
  • Make the Financials Parent the Accounts Payable account.
  • A recommended best practice is to call this account "Bank X Credit Card Payable" or something similar in order to distinguish its purpose.

Create Payment Method

Navigate to Admin > Setup > Accounting > Payment Methods.

  • Create a Payment Method for employees to use when entering corporate card expenses on an expense report.
  • Select the Edit Accounts icon on the new payment method to associate it with the account created above.
  • When an employee completes an Expense Voucher on which they use this credit card, they will select this payment method, and the offset to the expense charges will credit the account that you wish to reconcile. 

Set up Credit Card as Bank Account

Navigate to Admin > Setup > Accounting > Bank Accounts.

  • In order to utilize the bank reconciliation feature for credit cards or other accounts, you must first define a "bank account" for the credit card with a type of "Other."
  • Be sure to enter the General Ledger account created above in your bank account setup.

Update the Posting Group

Navigate to Admin > Setup > Accounting > Posting Groups.

  • Update the "Expense Report Offset - Non-Reimbursable" account category in the Posting Group to select the Payment Method column.
  • You will want to make sure that ALL non-Reimbursable "Expense Reports (P&R)" Payment Methods have a posting group account assigned.  

Periodic Processing

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 Cardwill be available to reconcile against your statement.



Additional Information

Help Docs - General Ledger - Bank Reconciliation

KC - Credit Card Integrations, Imports, and the IMU

KC - AP Admin Guide - Vendor Invoice Entry

KC - AP Admin Guide - Bulk Vendor Payment Creation

KC - General Ledger Guide: Bank Reconciliation

KC - Quick Topic - Adding Invoices for All Vendors on a Credit Card Bill

 KC - Bank Reconciliation.


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