How to set up credit cards in D365 Business Central

Our customers often ask what is the best way to effectively set up credit cards, so that they are easy to manage and reconcile periodically against the statements.

The following steps need to be completed to initiate the setup:

• Create a G/L Account for each Credit Card.
• Input ‘Chart of Accounts’ upon clicking on Search Icon and select the relevant link.

• Select New and fill out the necessary information in the General, Posting, Consolidation, Reporting, and Cost Account Tabs. Ensure that the Direct Posting functionality is disabled. Updating this account should only be done by posting an amount through a subsidiary account – bank accounts, are discussed in more detail further down.

• Create a Bank Account Posting Group that maps to each Credit/Master card – G/L Account.
• Create new line to type in the Bank Account Posting Group code and select the corresponding G/L Account. This code will be assigned on the Bank Account (subsidiary) to link to an account in the chart of accounts.

• Create a Bank Account Card for each Credit/Master Card. Ensure that the Bank Account Posting Group is mapped correctly.
  • Fill out the necessary information in the General, Communication, Posting and Transfer Tabs.
  • To link the bank account to the posting G/L account, on the Posting tab select Bank Account Posting Group, click the drill down button, and select the code. When a Bank Account is used in a transaction, it will automatically create an entry in both the Bank Account Ledger and General Ledger.

• Create the Vendor Posting Group that maps to each Credit/Master card – G/L Account.
  • Create a new line to type in the Vendor Posting Group code and select the corresponding G/L Account. This code will be assigned on the Vendor (subsidiary) to link to an account in the chart of accounts.

• Create the Vendor Card for each Credit/Master card. Ensure to map the Vendor Posting Group correctly.
  • Fill out the necessary information on General, Address & Contact, Invoicing, Registration, Payments, and Receiving Tabs.
  • To link the Vendor to the posting G/L account, go to the Invoicing tab > Vendor Posting Group, click the drill-down button, and select the code. When a Vendor is used in a transaction and eventually posted, it will automatically create an entry in both the Vendor Ledger and General Ledger.

Transaction Entry Process:

• Record payment for the total Credit Card expenses using the Payment journal.
  Enter it against the Credit/Master card Vendor (DR) and main Bank Account (CR) and then Post and Export the ABA file.

• Record the individual expenses for the Credit/Master card using a General Journal. Enter it against expense G/L Account (DR) and Credit/Master card Bank Account (CR) and then post the journal.

• Process Bank Account reconciliation for each Credit/Master card Bank Account.

The clearing journal needs to be entered against the Credit/Master card Vendor (CR) and Credit/Master card Bank Account (DR).

This is required to clear the Credit/Master card Vendor to zero and update Credit/Master card Bank Account for reconciliation against the statement.