Using an Agency Credit Card for Payments - TRAMS, Inc.

Scenario Two: Accounting for expenses as charges are made, not when the statement is paid.To account for expenses when the charges are made, use the Operating Payable feature in TRAMS Back Office.1. When the charge is made, enter a payable (go to Payments/Create Payable), entering the amount of the charge inthe amount field, with the date entered being the date you are creating the payable. In the date payable field enterthe anticipated date that you will be paying the credit card bill.2. When prompted for a journal entry, the Operating Expense Payable account is automatically credited. Create ajournal entry to debit the appropriate expense account.3. When it is time to pay the credit card bill, query the payables.Page 17 of 25 7/31/2009