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Community Contributor **

How to apply multiple vendors to one check

So, I know I have to select a vendor to pay my credit card bill. The vendor name will be Chase Visa. That said, companies such as Staples, Amazon, and our post office appear on our credit card bill. Is there a way to include the details of each company name somewhere in QB so that in the future if I search by company name I can see how much I spent at Staples or Amazon, for example - and it will include what I paid on my credit card? I plan to include the name of each company in the Account Details description of the check for the credit card bill, but I am assuming that is not searchable. Any suggestions?

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Best answer 11-14-2018

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Re: How to apply multiple vendors to one check

Your credit card is supposed to be connected to QBO. The expenses come through the bank feed and you assign the vendor and expense account for each charge. You only choose the credit card company as the vendor when you are paying the actual monthly credit card bill. 

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Established Community Backer ***

Re: How to apply multiple vendors to one check

Your credit card is supposed to be connected to QBO. The expenses come through the bank feed and you assign the vendor and expense account for each charge. You only choose the credit card company as the vendor when you are paying the actual monthly credit card bill. 

Established Community Backer ***

Re: How to apply multiple vendors to one check

The main point is, this is Not a Bill. You got your Account activity Statement.

 

Your individual spending transactions are not all that one date, and not from VISA. The entries are individual Expense entries from the card account, as Credit Card Charges. That makes the running debt balance increase.

 

Then, you use Check Expense to pay VISA and the "expense account" is the Credit Card Type of account you were using to show it had been the source of the spending in the first place.

 

Each date you buy something on the credit card is the Date you Paid and took a micro-loan from VISA to be able to Buy from Staples and pay them that date.

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Re: How to apply multiple vendors to one check

Working from the client backwards, our clients do see their credit card statement balances as a bill, and often times choose to cut a check to make a payment against the balance of their credit card statement. If the clients credit card is connected, the charges on the credit card account will come through the bank feed, and each transaction can be assigned to a vendor and expense account as I stated before. If they choose to cut a check to make a payment on the account, they can simply choose the credit card vendor and instead of choosing an expense account, they would choose the credit card account (balance sheet liability account tied to the connected credit card). OR, the client can choose to make an electronic (online) payment with their connected business bank account, which would be treated as a transfer from the bank account to the credit card account.

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Re: How to apply multiple vendors to one check

"our clients do see their credit card statement balances as a bill"

 

And it is up to you to explain to them:

"You didn't buy this all on that one date (closing date. You bought things on these individual dates."

And;

"You didn't buy anything from VISA or AMEX. Every time you use the card you Borrowed from VISA or AMEX and went more in debt to them. This is a Micro-loan process, not a Bill to pay later."

 

"and often times choose to cut a check to make a payment against the balance of their credit card statement."

 

Yes, Always. That is paying down the debt balance. That is Not the date you bought office supplies, though.

 

"If the clients credit card is connected, the charges on the credit card account will come through the bank feed, and each transaction can be assigned to a vendor and expense account as I stated before."

 

Yes, because that is Reality.

 

"If they choose to cut a check to make a payment on the account, they can simply choose the credit card vendor and instead of choosing an expense account, they would choose the credit card account"

 

Yes, that is the proper way to handle all of this, even if you enter things manually.

 

"OR, the client can choose to make an electronic (online) payment with their connected business bank account, which would be treated as a transfer from the bank account to the credit card account."

 

Yes, that just = paperless.

 

Connectivity or not changes how the entries are made.

 

A typical error is to treat the CC statement as one Bill to pay later. That's not a bill; you didn't buy anything from the card provider and you didn't buy it on this one date. And that is why there is no "multiple vendor" for the one Check. The Charges are the individual entries where you put the "vendor" Name and expense reason, date and amount, such as: Bought $25 Office Supplies from Staples on a specific date.

 

Make the entry manually. Make the entry by download. Either method increases the debt balance owed to the card provider.

 

The Check to pay down the credit card balance is Not a Bill payment. There is no Bill to enter, and this check, do not get broken down by what you bought. This is not the payment for Office Supplies. This is the payment to your Card Provider = a Lender  to you.

 

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Re: How to apply multiple vendors to one check

Business owners are very smart and they know that they did not make all of their purchases on the same date directly from their credit card companies. In the past, credit card statements were entered as monthly bills to be paid. The individual account charges on the monthly statements were broken out within the bill entry by expense category. If the statements had charges that crossed over periods, then two bill entries would be made by cardholder. This would keep the expenses in the month they were incurred. If there were 5 cardholders, there was an average of 10 bill entries per month. Then all 10 bills would be selected for payment with their A/P check run, assuming they had the cash-flow to pay off the balances. This was the "old" way, QBO offers us a new way! :)

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