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A/P on Visa

I was wondering if anyone uses a company Visa card to pay their vendor bills (i.e. media) to earn frequent flyer miles? If so, how do you go about posting against the I.O. and the payables in Clients & Profits?

Johnna Baker
V.P., Director of Finance
Image III, Inc.

We pay all our Utility invoices via Diners, the invoice is posted to the Vendor/Supplier stated on the invoice. At the time of paying the Diners bill we draw a cheque against the Vendor/Supplier but alter the payee name to Diners, this can mean you have several cheques paying your Diners/Visa bill.

Jenny Knowles
Accounts Payable
Simon Richards Group Pty Ltd

You bet we do! Hello frequent flyer miles! We try and use the credit card for major client purchases like printing or CD replication. As far as posting, we have the Mastercard set up as a vendor so we can post the invoice right to the Mastercard. If we had not paid with the Mastercard initially, but wanted to do so after receiving the invoice, we just unpost the invoice from that vendor and repost to the Mastercard vendor. We don't buy media so I have no input there.

Shannon Asquith
Business Manager
Tackett Barbaria Design Group

If I understand your question correctly the answer is quite simple. We use a credit card a ton to pay vendors for both job costs and overhead costs. It's quite straightforward. Start by having the credit card set up as a vendor. Then, when the credit card bill arrives and you're ready to enter it into your A/P, you simply choose the "distribute to many jobs, tasks" checkbox in your new A/P invoice entry. Then just start listing every PO/job# on it's own line item. A couple of other tips about the way we do it that makes things very easy: We enter in two A/P invoices for our credit card bill, say invoice #A and #B first as a job cost invoice, then #B as an overhead invoice. This reduces the number of times you have to say job: "none", if you'd used a job cost invoice for the whole thing. Also, we make a PO in our system for most everything that's bought on the card. On job costs though that can be a little unclear when the bill from the vendor arrives, as they don't always mark it really clearly as prepaid. So, as a big red flag so we don't enter in a bill that we've already prepaid, right below the line items for the PO, we make a negative line item for the total amount of the PO and call that line, "prepaid on XYZ visa". That clues us in right away when we look up all the PO's before entering in the A/P visa bill. Then just delete the negative line item on the PO before entering in the visa bill.

Lucia Mumm
Operations Manager
Full Circle Creative