That’s a good question and frankly one that has not come up before, so I surmise this is not something that is needed often. Since with a credit card payment you cannot use a check batch and you need to put in a payment amount upfront, I don’t see a way around having to manually enter the discount. It will all still work, but just might require an additional manual step for the discount.

-Victoria

Thank you for sharing your vast knowledge of GP. I find your information very helpful in dealing with my client’s questions. Regarding paying vendors with credit cards, I got great information from your site, but have an additional scenario. How do terms transcend from vendor with 2%/30 to the credit card vendor with Net 30? We wound up manually entering the discounts in Edit Check Batch for the client’s first credit card payment to a vendor with prompt pay discounts.

For what it’s worth, I have been using this method internally for my company and for many of our customers for at least 10 years and have never had an issue with something getting voided by it. (All on US or Canada installations of GP, no others, not sure if that makes any difference.) If the credit card payments are, indeed, causing voids in your system, something else is in the mix causing it or something is not working properly. Do you have any 3rd party products or customizations?

What is really strange is that out-of-the box GP does not let you void an invoice if it is paid. This has been the case for many versions and I just tested it again to make sure in GP 2010. You would first have to void the payment to be able to void the invoice. What you’re describing on the voided line display is correct through, it will have an asterisk next to HIST and it will have the amount of the transaction in the Unapplied Amount – that’s all expected behavior.

If you are able to figure out what is happening with the voids, please post back, I am very curious.

-Victoria

Thanks again though for trying to help us out. This article will still be helpful.

It makes sense, this is why I recommend using the actual vendor name and transaction date as part of the document number for the credit card payment. That way, looking at the AMEX vendor transactions and seeing a document number of ’120315 STAPLES’ without any GL distributions, you would know that the GL distributions can be found by looking at the Staples vendor transaction(s) on 3/15/12.

It also makes sense to me that the AMEX invoice has no distributions because no new GL event occurs on the AMEX invoice – all the GL distributions are already accounted for with the original (STAPLES) invoice and payment. What would be really nice is if GP provided an additional drillback to the original STAPLES transaction from the AMEX invoice, but that is not available, so you have to manually find the ‘originating’ transaction if you need it.

-Victoria

I think you are missing the payment transaction created ‘in-between’ the 2 invoice transactions. Towards the bottom of my Scenario 1 I describe the 3 transactions that GP creates when you post your ‘first voucher’:

1. Creates an invoice under the STAPLES vendor. This will debit the Purchases account(s) and credit AP for the STAPLES vendor.
2. Creates a payment under the STAPLES vendor and applies it to the invoice in # 1 above. This will debit AP for the STAPLES vendor and credit AP for the AMEX vendor. Typically these are the same accounts, but they could be different AP accounts, either way, GP will handle this correctly.
3. Creates an invoice under the AMEX vendor. This invoice is open (unpaid) at this point. There are no additional GL distributions for this transaction, as they were already recorded in the payment transaction in # 2 above.

Hope that helps.

-Victoria

I believe this is a known issue. This KB article seems to indicate that this is only a GP 10.0 issue (in the last bullet point) – so perhaps this has been fixed in GP 2010? I, frankly, have seen so many other issues with the reconcile to GL functionality that I don’t use it much.

-Victoria

We have implemented this process as you’ve blogged it. It’s working great except for one little thing that we’re not sure how to resolve. When we run the routine to reconcile to GL our payables management (our account 2000) we are out of balance by the amount of the credit card transactions we’ve entered. Can you shed some light on this?

Thank you in advance!!

Ann

Maybe I am not seeing the whole picture, but this seems very complicated to me. Why not just set up Petty Cash as a checkbook instead? You don’t actually have to reconcile as with regular checkbooks, but having it set up this way lets you pay vendors from it. To get money back into it I would use a payables Return transaction.

-Victoria

Thank you for your kind words! I am not sure I entirely understand the example with the postage and petty cash in the context of credit cards…unless they have petty cash set up as a credit card?

In any case, there are 2 typical ways to enter a credit for credit cards:

1. Enter a credit memo directly for the credit card vendor. Typically I wait until the statement comes to apply the credit memo to invoices. That way I can just search on all the unapplied amounts for the credit card vendor and see them all easily. But it would not hurt anything to apply it earlier if you want to.
2. Enter a Return for the actual vendor and put the credit card information on the bottom right (some more on Return transactions here: http://victoriayudin.com/2008/12/30/payables-return-transactions-in-dynamics-gp/). This method is good if you want to keep track of the details for the actual vendor. This automatically creates a credit memo for the credit card vendor, which you can then decide when/how to apply, just as in the previous option.

Hope that helps.
-Victoria

“How can I enter a “credit” to a credit card? I sell postage stamps to employees occasionally. The cash is put in petty cash. The petty cash reimbursement request is lowered by this amount. We reimburse the petty cash fund with a credit card. In transaction entry, I can’t do a negative invoice, I can’t do the return because I don’t have an invoice to credit, and the credit memo goes to “on account” only.
Can I use the credit memo and then apply the “on account” amount when I pay the credit card? Or is there another way.” KS

Thanks, Sheila

Why not use a manual payment?

-Victoria