Advance payment on Credit cards
Before taking you through the procedure, check that an account for Credit card exists in the liabilites part of the Chart of Accounts. Create it if that is not the case.
The credit card account is added to the group or sub-group of short-term debts, as long as this is pre-requisite in the chosen Chart of Accounts.If there are no sub-groups, it must be listed in the liabilities section.
As per 10.01.2019 CHF 1'000.- are transferred from the bank account to the credit card.
- The bank account is credited and the Credit card account is debited.
Register your credit card bill
Upon reception of the credit card bill, you must record all the costs listed on the credit card.
On 15.02.2019 we receive the January credit card bill for a total of CHF 790.- (details: CHF 560.- for computer purchases, CHF 150.- for hotel expenses, CHF 80.- purchase of office supplies) (Doc.25)
- It will be registered on several rows. All the costs relating to the expenses listed in the credit card are recorded in the Debit column; we register one expense per row; in Credit, the credit card account is registered (total of the bill).
Check the credit card account balance
Each time you pay an advance towards the credit card and once all the costs listed on the credit card have been recorded, you must verify that the credit card balance matches the balance stated on the credit card.