ANS-0364 · PURCHASE & VENDOR MANAGEMENT
How to Process Vendor Bill Payments Using a Credit Card in NetSuite
Learn the essential steps to accurately record vendor bill payments made with a credit card and subsequently settle the credit card balance within NetSuite.
Short answer
To pay vendor bills with a credit card in NetSuite, first set up a Credit Card type account and a vendor for your credit card bank. Pay bills using the credit card account, which decreases its balance. Then, use a Write Check transaction to pay the credit card vendor from your bank account, effectively settling the credit card balance and reconciling your accounts.
Scenario
Organizations often need to pay vendor bills using a credit card rather than a direct bank transfer or check. Accurately tracking these transactions and subsequently settling the credit card balance requires a specific setup and process within NetSuite to ensure proper accounting and reconciliation.
Solution
The following process outlines how to manage vendor bill payments made with a credit card:
Create a Credit Card type account in your Chart of Account.
Create a Vendor representing your Credit Card bank (for example: "RBC Visa"). On the Financial Tab, under Default Expense Account, ensure the account created in step 1 is selected.
Pay Bills normally on any outstanding vendor bills, ensuring payment is made using the Credit Card account created in step
This action will decrease the balance of the credit card account.
To settle the Credit Card balance, use the Write Check transaction. Select the Vendor representing the credit card created in step
The Expense subtab should automatically list the default expense account, which is the Credit Card account. On the body of the transaction, select the Bank account used to pay the credit card.
Upon completion, the Write Check transaction will increment the value of the Credit Card account back up, while simultaneously decrementing your Bank account.
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