Information on credit card processing in Payables Management in Microsoft Dynamics GP

This article provides an overview of how credit card processing functions in Payables Management in Microsoft Dynamics GP.

Applies to:   Microsoft Dynamics GP
Original KB number:   970112

Introduction

1. Set up the credit card in the Credit Card Setup window.

   1. Select Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company and then select Credit Cards.
   2. Enter a Card Name.
   3. Select the Used by Company check box.
   4. Select Credit Card.
   5. Assign a Vendor ID (that is "credit card vendor").

2. Enter credit card payments in the Transaction Entry window (on the fly) or in the Manual Payment Entry window.

   • To open the Payables Transaction Entry window, select Transactions, point to Purchasing, and then select Transactions. This option is applicable if the invoice to be paid hasn't yet been posted.
   • To open the Payables Manual Payment Entry window, select Transactions, point to Purchasing, and then select Manual Payments. This option is applicable if the invoice has already been posted. Use the Apply Payables Documents window to apply the manual payment to the invoice.
   • To open the Apply Payables Documents window, select Transactions, point to Purchasing, and then select Apply To.

3. The credit card payment, similar to a computer check, uses PAY (debit) and CASH (credit) distribution records. Keep in mind that an invoice uses PURCH (debit) and PAY (credit) distribution records.

   Invoice transaction example

   Distribution Type	Account Number	Debit Amount	Credit Amount
   PURCH	000-1300-01	100.00
   PAY	000-2100-00		100.00

   Credit card payment example

   Distribution Type	Account Number	Debit Amount	Credit Amount
   PAY	000-2100-00	100.00
   CASH	xxx-xxxx-xx		100.00

   Note

   xxx-xxxx-xx is the accounts payable account of the credit card vendor.

4. The account for the CASH distribution record defaults from the Vendor Account Maintenance window of the credit card vendor. If there's no default account set up, the account must be manually entered in the Payables Transaction Entry Distribution window.

   1. To open the Vendor Account Maintenance window, select Cards, point to Purchasing, and then select Vendor. In the Vendor Maintenance window, after entering in the vendor to review, select Distributions.

   2. To open the Payables Transaction Entry Distribution window, select Distributions in the corresponding window the credit card payment is being processed, and enter the appropriate account.

5. Posting a credit card payment generates an outstanding invoice (that is, OPEN status) for the credit card vendor. This credit card invoice doesn't have distribution records.

   Note

   However, the PURCH distribution record of the original invoice, and the CASH distribution record of the credit card payment transaction, nets to a payable amount to the credit card vendor. It's consistent with step 4 where the pair of PAY distribution records cancel each other.

   Example

   Distribution Type	Account Number	Debit Amount	Credit Amount
   PURCH	000-1300-01	100.00
   PAY	000-2100-00		100.00
   PAY	000-2100-00	100.00
   CASH	xxx-xxxx-xx		100.00

   Note

   xxx-xxxx-xx is the accounts payable account of the credit card vendor.

6. If you want to void the credit card payment (for example, a different invoice should have been paid instead), both the credit card payment and the credit card invoice should be voided.

   • To void the credit card payment, use the Void Historical Payables Transactions window. On the Transactions menu, point to Purchasing, and then select Void Historical Transactions.

   • To void the credit card invoice, use the Void Open Payables Transactions window. On the Transactions menu, point to Purchasing, and then select Void Open Transactions. If a payment applied to the invoice, you must void the payment first.

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