1. Set up the credit card General Ledger accounts

1. Click Maintain > Chart of Accounts.
2. Set up the account for making credit card purchases: Enter an Account ID.
3. Enter a Description (for example, Visa Payable).
4. Set Account Type to Other Current Liabilities.
5. Click Save & New.
6. Set up an account for expenses related to the credit card (interest, fees, etc.): Enter an Account ID.
7. Enter a Description (for example, Visa Expense).
8. Set Account Type to Expense.
9. Click Save.
10. Close Maintain Chart of Accounts.

2. Set up a credit card vendor

1. Click Maintain, Vendors.
2. Enter a Vendor ID.
3. Enter a vendor Name.
4. Enter additional information as needed on the General tab.
5. Select the credit card liability account created in Section I as the Expense Account.
6. Click Save, then close Maintain Vendors.

3. Enter credit card purchases

To record credit card purchases, you’ll pay the vendor using the credit card liability account rather than a cash account. Later, you’ll pay the credit card vendor using the cash account.

1. Click Tasks > Payments.
2. Select a Vendor ID.
3. Enter a Check/Reference No. (we suggest using the date followed by a sequential number; for example, 031512-1).
4. Enter the Date.
5. Select the credit card liability account from Section 1 as the Cash account.
6. Complete the remainder of the payment. Make sure to enter a description that identifies the purpose of the purchase.
7. Click Save.

 TIP: If you receive "You have selected an account with an account type that is not typically used for the Cash Account on this transaction. Do you want to save the transaction with this account anyway?", click Yes. 

4. Pay the credit card vendor

1. Click Tasks > Payments.
2. Select the credit card Vendor ID from Section 2.
3. If recording a payment made outside of Sage 50, enter a Check Number. Otherwise, leave the Check Number field blank.
4. Enter the Date.
5. Select a Cash account. Use an actual cash account.
6. On the first line on the Apply to Expenses tab, enter a Description if desired.
7. In the GL Account field, select the credit card liability account from Section 1.
   • If you have the Hide General Ledger Accounts global option activated, Sage 50 will not display the G/L account field in this window
8. Enter the amount you're paying towards the principle.
9. On the next line, enter a Description if desired.
10. In the GL Account field, select the credit card expense account from Section 1.
11. Enter the amount you're paying towards the interest and/or fees.
12. Click Save or Print.

5. Reconcile credit card statements (optional)

If needed, you can reconcile credit card statements with your records before making monthly payments.

1. Click Tasks > Account Reconciliation.
2. Select the credit card liability account as the Account to Reconcile.
3. Because the balance account is a liability, enter a negative statement ending balance amount.
4. Clear each purchase listed on your credit card statement.
5. Enter other withdrawal or deposit adjustments during account reconciliation.
6. When finished reconciling your statement, click OK.