I am trying to run a report to show expenses and payments on a business credit card. I ran a P&L and it shows all but the payments made to the card. Tried several custom settings with no luck. This is for Last Fiscal Year.
That is because it is the individual charges on the card that show up in your P&L expenses, not the payments on the credit card account, the payments you make on the account reduce your liability for the credit card account which will be reflected on your balance sheet.
Run Three Reports, set them for This Fiscal Year:
P&L Standard, Accrual Basis
Balance Sheet Standard, Accrual Basis
Statement of Cash Flow
This: "and it shows all but the payments made to the card."
is Cash Flow. That is Expenditure, not Expense. The spending on the card is a Micro-lending process; every time you enter a Credit Card Charge, you go further into debt with the Card Provider and your Credit Card Type account in the Bal Sheet is increasing. You are Borrowing.
Then, the payment against the Card is reducing the Checking and reducing the card debt balance. This is Paying Down that micro-loan. You see this in the Statement of Cash Flows, as "funds used to service debt."
Don't confuse Expense and Expenditure.
Well said on the "expenditure" versus "expense" point that you shared.
Can you please provide a link to information on a credit card account being specifically classified as a "micro loan"? You have repeated this often enough in the forum that it has peaked my interest.
I've always thought of a credit card account as a line of credit with a financial institution. And my understanding of microloans is that they are small loans that are issued by individuals rather than banks or credit unions.
I really do teach this stuff, and have developed what I would hope provides a frame of reference and terminology that people retain. That's why you see the "same things" restated, in my responses. I have been a programmer and used QB for decades; teaching was the Hardest Thing I have ever had to learn to do :) Consistent delivery is Critical.
So, let's review:
Liability = something I owe to others.
AP = the Supplier of that good or service allows me to Pay Later. Not supposed to show on Cash Basis reporting.
Credit Card Charge = everyone already got paid. I keep using the card, proof that someone is willing to lend me money to cover my purchases = micro-loans. It's the same concept as a Line Of Credit, in that I drew from it to cover the costs every time I paid. Supposed to show on Cash Basis, because my expenses were Paid For at the time I presented the card to be charged.
Mortgage or vehicle loan = I benefited from the Debt (I have paid for my costs or acquired that asset) and now I owe some other entity for that amount that I borrowed. That's true of the credit card, as well. I benefited.
My classes at two different schools: once is a Business College and one is a "Lifelong Learning Center" where you can take, for instance, Thai cooking, get your Chair-side Dental Assistant certificate, brew beer, learn Windows Fundamentals, Excel, Word, QB, or low pressure boiler operator, GED/HiSet, etc. The students are business entity people or their staff, CPAs or their staff, vocational rehab clients, people looking for job training, not for profit staff, governmental entity staff, and even the Certified Child Care Providers can take QB as part of their CPE.
That means teaching lots of different people with different knowledge and experience. And a common misunderstanding: that any spending from the business = Business Expense. That means teaching people that spending from the business does not even = Expense and helping them understand the data flow:
Expenditure: Paying off credit card debt, taking owner draw, buying new assets including inventory. Assets, Liability and Equity uses of funds are not Expense; they are Expenditure as part of Cash Flow.
And there is nothing like having a white board in class, to help show this. I list a basic Bal Sheet account listing on the left, P&L (1 income, 1 expense, draw a line, Net Income) in the middle, Items on the right. I show an arrow (red = minus and green = +) from/to Banking for Display purposes, the first hour of class, and leave that up all day. I take a Red marker and arrow from Banking to Inventory; from Banking to Mortgage; from Banking to AP; from Banking to Owner Draw; from Banking to Credit Card account. All of that is the on that left Side and this helps them realize nothing here crosses to the middle part, the P&L listing. Then, I use green arrow from Checking to Income; red arrow from Checking to Expense and from Credit Card to Expense and from AP to Expense. Now we "crossed the center line."
When I taught my first class, none of this was part of the material, since it wasn't in the book (neither was, should you make backups of that data?). From having to answer the same basic questions over and over, I developed these strategies that revealed things that helped me, as well.
We have this 15 minute review of "accounting" and then we run those three reports. As part of, "Let's learn about navigating the QB menu and the options for the Desktop view" we put the three reports side-by-side-by-side, and leave them open, and then use them to also learn about Cash vs Accrual Basis. This, and the basics of QB as a Program, and your company files as Data files, is pretty much my first 1.5 hours of class. I teach this as: "Let's pretend we all just got hired by Rock Castle Construction. Let's see how they're doing, what will be our tasks to improve operations, and if they can even afford to hire and pay us, or not."
Please see my attachment. This is what I use when I teach.
I have a large corporate client that asked me to provide a reference that they printed large format and Framed.
This is from that whiteboard concept. When I teach, the image is added to as I explain, for instance, starting with Bank, Loan and Equity. Then, we expand on that for cash basis type accounts. Then, while I teach, we add AP (in liability) and AR (in Asset) to describe how they contribute to the full picture.
I have attached it for you, here. It's already stored on this server.
Cool, thanks for sharing, but TMI. I would not refer to credit card accounts issued by financial institutions are microloans. As microloans are issued by Nationwide microlenders such as the SBA (Small Business Association) .
It's good that you repeat yourself in the forum and share your knowledge as a teacher, I admire you for it, and thank you for all of you valuable contributions, for which there have been many.