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Level 1

Prepaid credit card system setup

Hi,

 

 

I'm trying to implement a system at our church organization with prepaid credit cards being used. These cards are re-loadable and will be used by members in their respective committees.

 

My though process is, I treat these cards as prepaid expense and will act like petty cash. Once the balance of the card is used up, it will be replenished back to their original balance.

 

I'm just wondering if anyone has a similar system or if you have any better suggestion I can implement.

 

Thank you,

1 Comment
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Level 7

Prepaid credit card system setup

Hi @jcvacoba,

 

In theory that is correct.  but practically speaking, it would be much easier for you to track this under a credit card account.  That way you won't have to use JE's to post the expense to the prepaid account as they occur.

 

When you load the cards, you will have a negative balance in the credit card account because you will have posted the pre-load amount to each CC account that matches the cards.  I would then require your members to bring in the CC receipts as they spend them.  You would enter the receipts in the credit card module under that particular card, posting to the applicable expense account.  As each card gets closer to $0.00, load them up again and post to the appropriate CC account you have set up per card.