Paying a 3rd Party Vendor – Paying the Credit Card Vendor
In Accounts Payable (Module 3), vouchers can be paid with a different Vendor. This may be used for paying a vendor with a credit card. For instructions on this please see the document titled Credit Card / 3rd Party Vendor .
When the 3rd party vendor pay is completed a new debit voucher is posted to the 3rd party vendor’s A/P account for the total of the selected vouchers.
For this document we will use the following example:
The American Express vendor was used in the 3rd party vendor pay on 12/10/11 to pay 3 different vendors and again on 12/20/11 for 2 other vendors. Here are the vouchers now on the American Express vendor account:
Voucher #1001 12/10/11 OCE $6,000.00
Voucher #1002 12/10/11 ABC Paper $300.00
Voucher #1003 12/10/11 GMAC $420.00
Voucher #2001 12/20/11 A&M SUNOCO $1,000.00
Voucher #2002 12/20/11 SAMS $50.00
It is now 12/25/11. You have a $10,000.00 American Express limit. Now you need to pay American Express.
Get a statement from American Express, either in the mail or go online to your American Express account.
Print report for your American Express vendor. Go to:
Accounts Payable (Module 3)
Aged trial balance (Task 9)
Aged trial balance with optional detail APTBAL (Sub-task 3)
Make the following selections:
- Select the proper print
- Aging date: 12/31/11 Use date to coordinate with American Express statement
- Aging basis (1)Due (2) Document: 2 Document
- Print item detail (Y/N): Y
- Document cutoff date: 12/31/11 Use date to coordinate with American Express statement
- ALL divisions
- Please enter vendor type (RETURN for ALL): ALL
- Numeric or Alphabetic Order (N or A): N
- Starting & ending vendor #: Type in American Express Vendor #
This A/P Aged trial balance report will show the 3rd party vendor vouchers. With our example the above vouchers will be on the report, with a balance of $7,770.00.
These vouchers need to be verified & checked off against the American Express statement.
- Make the following selections:
- Aged trial balance with optional detail APTBAL (Sub-task 3)
- Aged trial balance (Task 9)
If the American Express statement has additional charges they should be investigated.
If these charges are for inventory find the Purchase order, receiver & vendor invoice. If need be call the vendor and ask for a copy of the invoice.
- Look in vendor’s A/P account to see if it has already been vouchered & posted to that vendor #. If it has go into Task 25 Voucher payment preparation (Task 25) to complete a 3rd party vendor pay to transfer the voucher to American Express.
- If the invoice hasn’t been vendor invoiced, do it now (Module 7 PO, Task 3 Vendor invoice entry & editing). Mark field 20 Pre-paid with 3rd party vendor using the American Express vendor #. Post it all the way into the vendor’s account.
If the charges on the American Express statement are not for inventory, they will need to be vouchered & posted in A/P Voucher entry & editing (Task 1). It is up to you if they will go into a vendor’s account or directly into the American Express vendor.
- Someone used the American Express card to take a customer to lunch. The restaurant doesn’t have a vendor # so the charge is vouchered & posted directly into the American Express vendor #.
Another charge on the American Express statement is to USPS for stamps. USPS has a vendor #.
- Look in the USPS vendor account to see if it has already been vouchered & posted to that vendor #. If it has, you will need to do a 3rd party vendor pay in Voucher payment preparation (Task 25) to transfer it into the American Express vendor’s account.
- If the USPS charge isn’t already in the USPS vendor’s account you will need to go into Task 1 Voucher entry & editing to post the voucher (to the USPS vendor # marking field 7 Pre-paid with the 3rd party vendor using the American Express vendor #.
- Once all of the American Express charges are in the American Express vendor’s account print a new A/P Aged trial balance for the American Express vendor using the above selections. Now the A/P Aged trial balance for the American Express vendor and the American Express statement should match.
Pay American Express. This would be the same as paying any other vendor. (Other vendors may be paid at the same time.)
- Go to Voucher Payment preparation (Task 25) Select vouchers to be paid (Sub-task 1). Select the American Express vouchers for payment.
- Print payment edit list (Sub-task 3) Make sure this is the amount you want to pay.
- Pay selected vouchers (Sub-task 4) Pay for these vouchers with pay method preferred, company check, EFT or 3rd party vendor pay to pay with a different credit card.
IMPORTANT: Please follow the normal A/P Daily balancing procedures with all voucher postings and check registers. See document titled A/P Daily Balancing
NOTE: If vouchers are deleted or changed from the A/P open items (Task 21) or Voucher history (Task 19) this could cause a monthly imbalance. This is not recommended.