Record credit card transactions

  • Create a new account to manage your business credit card.
  • Record credit card charges, interest, and payments separate from other bank accounts.
  • Reconcile the credit card transactions in the account when you receive a statement.

Create an account for your credit card

Tip:

While not required, you may want to enter an opening balance for the account when you create it. Before you can do so, be sure to set the Accounts Start Date in Financial settings.

  1. Go to Banking, and then click New, Bank Account from the drop-down list.
  1. Complete the following information:
Account Type *

Choose Credit Card from the Account Type drop-down menu.

This will add a credit card icon to tile to help you identify it.

Account Name * Enter the name of the credit card account, as you want it to show on Banking page.
Last 4 digits of your credit card number Enter the last 4 digits of the credit card account.
Add an opening balance

Optionally, click Add an opening balance:

  • Card Balance. If the account has a debit opening balance, enter the value here. This when you have a positive balance with your credit card company.
  • Overpayment. If the bank account has a credit opening balance, enter the value here. This is the most likely balance to have for a credit card, as you would usually owe money on your credit card.
  1. Click Save or Save & Connect Bank to connect a bank feed.

Record credit card charges and payments in this account. To add information such as contact details or mailing address, click the account to open it on the Banking page and then click the Address & Contacts tab.

Create a ledger account for credit card charges

If you haven’t already, create a new ledger account to record the amount paid in charges and interest on your credit card.

  1. Go to , then in Financial Settings, select Chart of Accounts.
  2. Select New Ledger Account and complete the following information:
Included in Chart Leave this selected.
Ledger Name* Enter a name for the account. For example, Credit card charges.
Display Name* Enter the display name. For example, Credit card charges
Nominal Code*

You can enter any code here.

If you want to use a number within overheads range, enter a code that’s not already in use between 7000 and 7999, for example 7901.

Category *

Choose Overheads.

This determines where it appears on your profit and loss.

Group This defaults to Expenditure and you can’t change this.
VAT Rate Choose No VAT.
Visibility Leave the defaults selected.
  1. Click Save.

Record credit card payments

  1. Go to Banking then click the credit card account.
  2. Click New Entry, then Purchase / Payment
    1. To pay a supplier, select Supplier Payment.
    2. For any other payment, select Other Payment.
  3. Check or enter the following information:
Supplier (optional) If you want to record this payment against a particular supplier record, enter the name here.
Paid from Bank Account * Select your credit card bank account.
Method Choose the required payment method.
Date Paid * Enter the date of the payment.
Reference (optional) If required, enter a reference.
Amount Paid * Enter the total amount of the payment.
Owed The current owed amount for the selected supplier is displayed here.
Balance The current bank balance for the selected bank account is displayed here.
Ledger Account The default purchase category appears. If required, you can change this.
Details If required you can enter more details about the purchase, such as what the item you purchased was.
VAT Rate Select the correct VAT rate for this transaction. The VAT is included in the total value and the appropriate breakdown appears on your return.
Total This defaults to the value you entered in Amount Paid. You can amend this if required.

* These details are compulsory.

  1. If the payment was for several items of different values relating to different categories, or have different VAT rates, enter these on separate lines.
  2. Click Save.

Record credit card charges and interest

To make sure you can reconcile your credit card statement with Sage Accounting, you'll need to record any interest you've been charged against the new ledger account.

  1. Go to Banking then click the credit card account.
  2. Click New Entry and then click Purchase / Payment then click the Other Payment tab.
  3. Check or enter the following information:
Paid from Bank Account *

Select your credit card bank account.

Check the correct credit card account appears. If you need to change this, choose the relevant account.

Method

Choose the required payment method.

As interest and charges are automatically added to your account, the Credit Card option is probably the most relevant

Date Paid * Enter the date of the charge.
Reference (optional) If required, enter a reference for this charge.
Amount Paid * Enter the total amount of the charge.
Balance The current bank balance for the selected bank account is displayed here.
Ledger Account Choose the ledger account you have just created for credit card charges
Details If required you can enter more details about the charge. For example, credit card fee.
VAT Rate Select the exempt VAT rate for this transaction.
Total This defaults to the value you entered in Amount Paid. You can amend this if required.

* These details are compulsory.

Transfer money to pay your credit card bill

You'll need to record credit card payments to this account as well so that you can reconcile the account with your credit card statement.

  1. Go to Banking then click New then from the drop-down list click Bank Transfer.
  2. Complete the following information:
Paid from Bank Account * Choose the account you’re paying your credit card from. For example, your chequing account.
Paid into Bank Account * Choose the credit card account.
*Method*  Choose the transfer method (optional).
Amount Transferred * Enter the amount of the payment.
Date Transferred * Enter the date of the credit card payment.
Reference (Optional) If required, enter a reference for the payment.
Description If required, enter a description for the payment.

* These details are compulsory.

  1. Click Save.

To record a credit card refund

If you been refunded some money on your credit card, you'll need to record this too.

  1. Go to Banking then click the required bank account.
  2. Click New Entry then from the drop-down list click Sale / Receipt.
  3. Click on the Other Receipt tab. Enter exactly the same details as the credit card payment you’re refunding.
  4. Click Save.