Vendor Purchases via Credit Card (v6.0)

Modified on Mon, 29 Jan 2024 at 04:51 PM

 

 

 

Vendor Purchases via Credit Card

 

 

Purpose of this document

 

This document describes how to set up and record Vendor purchases made via credit card by associating the purchase with the Buy-From and Pay-To.

 

Ceres Object release 6.00.00 is required for the functionality described in this document.
 

TABLE OF CONTENTS


 

 

 

 

Overview

 

Normally, to record vendor purchases Ceres utilizes the Pay-to Vendor functionality. This option has several drawbacks for purchases with credit cards including.

 

  1. The process is time consuming in that data must be re-keyed and then reconciled against the credit card statement.
  2. The purchase transaction shows up under the Pay-to Vendor, not the Buy-from Vendor.
  3. After posting, the purchase appears as if it had been made from the Pay to Vendor when it was made from the Buy from Vendor.
  4. 1099 amount is attached to the Pay-to Vendor not the Buy-from Vendor.

 

The credit card functionality solves all the above issues. Also, with the vendor purchases via credit card functionality, the credit card transactions can be imported. Each credit card transaction will be associated with Buy-From Vendor and a Pay-To Vendor for tracking and reporting purposes. Assumptions that factor into this functionality includes.

 

  1. A Vendor will be created for each credit card (i.e., a Vendor for each credit card the food bank is billed for).
  2. A unique Credit Card Payment Method will be set up for each Credit Card Vendor.
  3. The Credit Card Payment method will not allow an invoice to be subject to 1099 to comply with the 1099-K requirements which requires the credit card processor to report 1099 amounts for credit card payments.

Setup

 

Various components must be setup before the vendor credit card functionality can be deployed. The setup is outlined below.

 

G/L Clearing Account

  1. Setup a G/L Clearing Account. This Account will be used to clear the Buy-From Vendor transactions. G/L Accounts can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Chart of Accounts” in “Tell me what you want to do” then selecting “Chart of Accounts” from the results in the Go to Pages and Tasks section OR by selecting the “Chart of Accounts” menu action (if present) from your Role Center home page.

 

 

 

Credit Card Vendors

 

  1. Create a vendor for each credit card the food bank is billed for. Vendors can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Vendors” in “Tell me what you want to do” then selecting “Vendors” from the results in the Go to Pages and Tasks section OR by selecting the “Vendors” menu action (if present) from your Role Center home page.

 

  1. Leave the IRS 1099 Code field blank. The credit card Payment Method will not allow an invoice to be subject to 1099 to comply with the 1099-K requirements which requires the credit card processor to report 1099 amounts for credit card payments.

 

Note: The Payment Method Code on the credit card vendor should not be specified.


Credit Card Payment Methods

 

  1. Define a unique Payment Method for each credit card the food bank is billed for. Payment Methods can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Payment Methods” in “Tell me what you want to do” then selecting “Payment Methods” from the results in the Go to Pages and Tasks section OR by selecting the “Payment Methods” menu action (if present) from your Role Center home page.

 

  1. Click New on the Home Tab to create a new Payment Method.

 

 

  1. Enter a Code and Description. Link the G/L Clearing Account to each credit card Payment Method as follows.

 

Bal. Account Type: Must be G/L Account.

 

Bal Account No: G/L Clearing Account. This is the G/L Account that is used to clear the credit card transactions associated with the Buy-From Vendor and the Pay-To Vendor.

 

Vendor No.: Link each Payment Method to a Credit Card Vendor.

 

In the example below, CC-CHV and CC-USV were set up as Credit Card Payment Methods. Both Payment Methods are linked to the 281000 - Credit Card Clearing Account. Payment Method CC-CHV is linked to Vendor V000200 – Chase VISA and Payment Method CC-USV is linked to Vendor V000201 – US Bank VISA.

 

 

Credit Card Purchase Invoice Numbers

 

  1. Setup a Vendor CC Invoice Number Series with a Starting Number. No Series can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “No Series” in “Tell me what you want to do” then selecting “No Series” from the results in the Go to Pages and Tasks section OR by selecting the “No Series” menu action (if present) from your Role Center home page.

 

  

  1. Link a No Series to the Vendor CC Invoice Nos. field in the Purchases & Payables Setup.

 

 

Processing Credit Card Purchases 

 

There are two ways to process credit card purchases; manual entry and importing transactions.

 

Manual Entry of Credit Card Purchases

 

  1. Create a purchase invoice or purchase order. In the Buy-From Vendor No, select the vendor from whom the transaction was purchased. This requires a vendor to be set up for each entity you purchase from even though the transaction will be paid via the credit card vendor.

 

  1. On the Invoice Details FastTab, select a credit card Payment Method. The Payment Method that is selected should align with the credit card that was used for this purchase.

 

 

  1. Enter the purchase invoice lines like you normally would. A single invoice can be entered for each transaction or transactions can be combined on a document. The key is that transactions need to be entered based on the vendor they were purchased from.

 

 

  1. Post the purchase invoice. When the invoice is posted, entries will be created for both the Buy-From Vendor (vendor entered on the purchase invoice) and the Pay-To Vendor (credit card vendor).

 

  1. Two entries will be recorded (Invoice and Payment) for the Buy-From vendor. Whereas a single entry (Invoice) will automatically be recorded for the Pay-To Vendor. This allows the original transaction to be tracked against the Buy-From Vendor, and the payment to be tracked and made against the Pay-To Vendor.

 

Buy-From Vendor (entered on purchase invoice) Ledger Entries

 

 

Pay-To Vendor (credit card vendor) Ledger Entries

 

 

  1. The G/L clearing account (account 281000 in this instance) associated with the credit card Payment Method, was used to offset the Payment to the Buy-From Vendor and to record the Invoice to the Pay-To Vendor. The net effect is $0 in the G/L Clearing Account. The G/L accounts that were entered on the purchase invoice lines, posted as is and are associated with the Invoice to the Buy-from Vendor. 


Note: The Source Name (Vendor Name) associated with the transaction displays in the General Ledger Entries.

 

  

  1. Credit card purchases can be reversed via a purchase credit memo. On the purchase credit memo select the same Buy-From Vendor and the credit card Payment Method that was used for the original transaction. If the Copy Document functionality is used, the Payment Method Code is copied along with the amount and other parameters.

 

Importing Credit Card Purchases

 

  1. Credit card purchases can be imported from an Excel file by running the Import CC Transactions Excel function.

 

  1. The import can be accessed by selecting “Search” from the Dynamics 365 Business Central Banner and entering “Import CC Transactions Excel” in “Tell me what you want to do” then selecting “Import CC Transactions Excel” from the results in the Go to Pages and Tasks section OR by selecting the “Import CC Transactions Excel” menu action (if present) from your Role Center home page.

 

  

  1. From the Import CC Transactions Excel Page, select the Workbook File Name and the Worksheet Name. Toggle the Auto Post field to automatically post the purchase invoices that are created. If Auto Post is not selected, when the import runs, the purchase invoices that were created will need to be posted manually.

 

 

  1. Click the OK button to launch the import. An import dialog will pop indicating % complete. Once the import has completed, a message will pop up indicating the entries have been successfully imported. 

 

  

  1. As noted above, a separate purchase invoice will be created for each combination of Vendor No., External Doc No., Payment Method Code, Fund No, and Global Dimensions when the Excel file is imported.

 

  1. The purchase Invoice number that is assigned is based on No Series assigned to the Vendor Invoice Nos. field in the Purchases & Payables Setup.

 

  1. If invalid data exists in the data file (such as an invalid Vendor No, Fund No, G/L Account No, Dimension Code), or if the data file is blank, the below message will pop up. Because the file could contain multiple errors, the message will not display the errors that were encountered.

 

  

Note: It is important to note or record the errors encountered to be able to identify the transactions that have errors that need to be resolved.

 

  1. The import will continue even if invalid data is encountered. For each transaction combination, a separate purchase invoice will be created regardless. If purchase lines could not be created because of invalid data (invalid purchase documents will not be posted). The data can be updated in the file and then re-imported. Before re-importing verify which transactions have been created and what data was imported. Depending on the volume of transactions, it may be easier to create a data file just for the transactions that did not import and/or had errors. You may also manually update the purchase invoices with the correct data or delete all the purchase invoices that were created and then re-import the entire file.

 

Note: If you re-import the entire file after correcting the errors, be sure to delete all the purchase invoices that were previously created, or the re-import will produce duplicate transactions.

 

  1. If Auto Post was not selected when the import was run, the purchase invoices that were created will need to be posted. In the below example, the purchase invoices that were created from the import are easily identified by the CCI-XXX No. that was assigned. Review and update the purchase Invoices as needed and then post.

 

 

  1. To import the transactions, the Excel file (xlsx format) must be defined as follows.

  

 

 

  1. Posting Date - Posting Date of the purchase. Acceptable date formats are YYYY/MM/DD or MM/DD/YYYY.
  2. Amount - $ amount of the purchase. Amounts formatted with $ and commas, such as $1,124.13 can be imported.
  3. Description – Text to describe the purchase.
  4. Payment Method - Credit Card Payment Method. The Payment Method that is selected should align with the credit card that was used for this purchase.
  5. Vendor No - Buy-From Vendor No. or the Vendor from whom the transaction was purchased.
  6. G/L Account No. - Account No. you want this transaction to post to.
  7. Fund No. - Fund No you want this transaction to post.
  8. External Document No. – Document No associated with this transaction.
  9. Global Dimension 1 - Dimension (Global 1) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  10. Global Dimension 2 - Dimension (Global 2) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  11. Shortcut Dimension 3 - Dimension (Shortcut 3) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  12. Shortcut Dimension 4 - Dimension (Shortcut 4) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  13. Shortcut Dimension 5 - Dimension (Shortcut 5) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  14. Shortcut Dimension 6 - Dimension (Shortcut 6) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.
  15. Shortcut Dimension 7 - Dimension (Shortcut 7) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup
  16. Shortcut Dimension 8 - Dimension (Shortcut 8) you want transactions to post to. This may differ from food bank to food bank. Dimensions that are in use defined in the General Ledger Setup.

 

Transactional Data: Enter the transactional data starting in Row 2. Row 1 is reserved for the File Header.

 

File Type: Save the Excel file with an extension of CSV.

 

File Format: Save the file in as an Excel file in xlsx format. Do not delete the File Header. Instead save the file with the File Headers (Row 1) intact.

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