How To: Setup and use a Credit Card Bank Account


WARNING icon
WARNING: Do not rename or reuse existing bank accounts or change the currency of an existing bank account.

When using credit cards for your transactions it is useful to setup a virtual credit card bank account to receive credit card payments. There are several reasons for this:

  • it is easier to reconcile the credit card payments and then transfer the amount your main bank account;
  • your main bank account screen will show the credit card amounts transferred by your credit card provider into your bank rather than the individual amounts;
  • your main bank account will be easier to reconcile as it will be less cluttered.

Create the Credit Card Bank Account

Create the Credit Card bank Nominal

  1. Open an Accounts screen (show me how).
  2. Open the [ Accounts | Nominal Accounts | Nominal Accounts ] tab.
  3. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  4. Press F3 or click the NEW ITEM button has an icon that shows two sheets of paper (identified by having the top right corner folded down), arranged diagonally on the icon from top left to bottom right to add a new item. Enter the following information:
    1. Code enter the Nominal Code for example 250.
    2. Description enter the description for example Credit Card Account.
    3. System Type column press F4 and from the options select Bank Control Account.
    4. Account Type column press F4 and from the options select Company.
  5. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the new nominal account.

Create the Credit Card Bank

  1. Open a System Data screen (show me how).
  2. Open the [ Bank Accounts ] screen.
  3. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  4. Press F3 or click the NEW ITEM button has an icon that shows two sheets of paper (identified by having the top right corner folded down), arranged diagonally on the icon from top left to bottom right to add a new item.
  5. Enter the following information:
    1. Account Name: for example Credit Card Bank Account.
    2. BNominal: press F4 and select the nominal you created above, for example 250 / Credit Card Account.
    3. Set the CT account number for the payment types as setup in the credit card setup dialog, to link the bank to the credit card payment type e.g. PayPal. (Optional)
  6. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the bank account.

Link the Credit Card Payments to the Credit Card Bank Account

  1. Open a System Data screen (show me how).
  2. Open the [ System Payment Types ] screen.
  3. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  4. Change the Credit Card payment type to go to the bank you created, for example Credit Card Bank Account.
    Note: these will be automatically banked as the Auto Bank checkbox is ticked.
  5. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save.

Reconcile the Credit Card Bank Account

The credit card bank account can be reconciled as follows:

  1. Open an Accounts screen (show me how).
  2. Open the [ Accounts | Bank Accounts ] screen.
  3. Select the Credit Card Bank Account from the 'Bank Account' drop-down.
  4. Press Alt+E or click the green triangle icon is the buttonbar's EDIT button to enter edit mode.
  5. Select the date range for the items in the credit card statement and press the Red Traffic Light Filter traffic light to turn it Green Traffic Light Filter .
  6. Click on the 'Go' button.
  7. Sort the credit (or debit) column, this will ensure that duplicate amounts can easily be identified.
  8. Focus in the sorted column (either debit or credit).
  9. Key in each amount into the Credit/Debit column and press Enter, this will tick the 'Recon' checkbox.
    Note: at this point the reconciliation can be saved and finished at a later time or day because, for example, bank interest or charges that are on the bank statement but not in Khaos Control need to be entered before the reconciliation can be completed.
  10. When the reconciled amount at the top of the screen is the same as the balance on the bottom of the current bank statement or report (i.e. the balance you wish to reconcile to), click on the 'Start Reconciliation' button and enter the balance.
  11. The remaining amount shown at the top of the screen should now be zero.
  12. Click on the 'End Reconciliation' button.
  13. In the prompt record the bank statement sheet numbers and click 'OK'.
  14. Alternatively Press Ctrl+S or click the disk icon is the button bar's SAVE button to save to complete the reconciliation In this instance a warning is displayed to ensure the reconciliation is finished and the user has not inadvertently selected the Save button.

Notes:

  1. If the amount you are reconciling appears in the grid more than once, check the payment date and/or the customer.
  2. Khaos Control allows the user to save the transactions marked as reconciled and continue reconciling after adding further payments, for example as bank interest, or saving for another day.
  3. Before reconciling for the first time, you should enter the balance from the Bank Statement issued prior to the one you are going to use for the reconciliation (to do this, select 'Manually Change Reconciled Balance' from the Banked grid's right-click context menu).

Transfer the Credit Card Balance to your Main Bank Account

Once your Credit Card Bank Account has been reconciled, the amount can be transferred into your main bank account.

  1. Open an Accounts screen (show me how).
  2. Open the [ Nominal Accounts | Nominal Accounts ] tab.
  3. Double-click or drag-and-drop the following nominals that you wish to transfer money between into the lower grid:
    1. Credit Card Bank Account
    2. Main Bank Account (the bank your credit card provider transfers the money to).
  4. To transfer the amount from your credit card bank to your main bank account:
    1. Credit: Credit Card Bank Account
    2. Debit: main bank account.
  5. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the journal transfer.

See Also


Did you find this article helpful?