Expenses with Corporate Cards: Implementation Activity

In the following implementation activity, you will learn how to create the entities necessary for processing of expense receipts with corporate credit cards.

Story

Suppose that the SweetLife Fruits & Jams company has opened a Visa corporate credit card issued by Key Bank to use the card to pay small amounts (for example, for books purchased for the company). The company's chief accountant wants to process and reconcile these payments in the system. Acting as an implementation manager, you need to configure the cash account and the payment method for tracking outgoing payments made through a corporate credit card.

Process Overview

In this activity, on the Chart of Accounts (GL202500) form, you will create a GL account for a corporate credit card. On the Payment Methods (CA204000) form, you will create a payment method for corporate credit cards. On the Cash Accounts (CA202000) form, you will create a cash account for the corporate credit card and specify the new payment method for it. Finally, on the Vendors (AP303000) form, you will create a vendor that represents the bank that issued the corporate credit card.

System Preparation

Before you start configuring corporate credit cards, launch the MYOB Advanced website, and sign in to a company with the U100 dataset preloaded. You should sign in as Kimberly Gibbs, an implementation manager, by using the admin username and the 123 password.

Step 1: Creating a GL Account for a Corporate Credit Card

To create a GL account for a corporate credit card, do the following:

1. Open the Chart of Accounts (GL202500) form, and on the form toolbar, click Add Row.
2. In the new line, create an account with the following settings:
   • Account: 29100
   • Account Class: OTHCURLIAB
   • Type: Liability
   • Description: Corporate Credit Card
   • Post Option: Detail
3. On the form toolbar, click Save.

Step 2: Creating a Payment Method

To create a payment method for the corporate credit card, do the following:

1. Open the Payment Methods (CA204000) form.
   Tip: To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings for the new payment method:
   • Payment Method ID: CORPCC
   • Means of Payment: Cash/Check
   • Description: Corporate Credit Card
   • Use in AP: Selected
   • User in AR: Cleared

     This payment method is not going to be used for customer payments.

   • Require Remittance Information for Cash Account: Cleared

     Remittance information is not required by this payment method for the related cash accounts.

4. On the Settings for Use in AP tab, clear the Require Unique Payment Ref. check box in the Payment Settings section so that a unique payment reference number is not required for each payment document created with this payment method.

   Make sure that Not Required is selected in the Additional Processing section. Payment documents created with this payment method do not require additional processing, such as printing checks.

5. On the form toolbar, click Save.

Step 3: Creating a Cash Account

To create a cash account for a corporate credit card, do the following:

1. Open the Cash Accounts (CA202000) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings for the new cash account:
   • Cash Account: 29100
   • Account: 29100 - Corporate Credit Card
   • Branch: HEADOFFICE
   • Description: Corporate Credit Card Key Bank Visa
   • Requires Reconciliation: Selected
   • Restrict Visibility with Branch: Cleared
   • Use for Corporate Cards: Selected
   • Reconciliation Numbering Sequence: CARECON - CA Reconciliation
4. On the Payment Methods tab, click Add Row on the table toolbar and in the Payment Method column, select CORPCC.
5. On the Entry Types tab, click Add Row and select BANKFEE in the Entry Type ID column.
6. Click Add Row again and select INTEREST in the Entry Type ID column.
7. On the form toolbar, click Save.

Step 4: Creating a Vendor

To create a vendor that will represent the bank of the corporate credit card in the system, do the following:

1. Open the Vendors (AP303000) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings for the new vendor:
   • Vendor ID: KEYBANK
   • Vendor Class: DEFAULT
4. In the Account Name box, specify Key Bank.
5. On the GL Accounts tab, in the Expense Account box, select 29100 - Corporate Credit Card.
6. On the form toolbar, click Save.

You have set up a cash account, a payment method, and a vendor, so that you can track the corporate credit card payments and reconcile the credit card balance in the system with the card statement balance.