How do I Setup Credit Cards for Sales or Purchases as Payment Type?

setup credit cards for sales or purchases as payment type

When operating a business, it is important to be able to note or record all financial transactions made or reived by the company. This is done to avoid any discrepancies in day-end calculations. Most of the time, business owners either use their current bank account or credit card to make such transactions.

To do so, you will obviously need to add or setup credit cards for sales or purchase as a payment type in your Sage account.In this post, we will discuss not only about how to add a credit card to your Sage 50 so you can record your sales and purchases but also about how you can create a ledger account for credit card charges and how to setup credit cards for sales or purchases as payment type.

How to Add Credit Cards for Sales and Purchases as Payment Type on Sage?

The first step in trying to use your credit card for all your sales and purchase transactions in Sage is to add it as a payment type. Let us take you through this simple process.

Step 1: Login to the sysadmin in the single user mode and ensure that all other Sage 50 tabs and windows are closed

Step 2: Now, from the home window, select Setup > Settings > Company > Credit Cards

Step 3: Next, choose “Accepted” for Sales and “Used for purchases

Step 4: Input the credit card name that you wish to use for your sales and purchases in the blank space

Step 5: Ensure that you connect the accurate General Ledger account with each credit card or bank account and key in any discount if and when applicable

Important Point: to remember is if you do not add a credit card on the “Used” screen, you won’t be able to see in the dropdown menu in “Payment Method” option in Payables or to pay a pending credit card bill

credit cards for sales or purchases

How to Create a Ledger Account for Credit Card Charges?

If it hasn’t been done already, you need to create a new category to record charges and interest transactions on your credit card. To do so, you have to:

  • Go to More>Financial Settings>Chart of Accounts.
  • Next, choose New Category and enter the following details:
Included in chartLeave this checked
Category NameEnter a name for the account (e.g. Credit Card Charges)
Display NameEnter display name (e.g. Credit Card Charges)
Category CodeEnter any code here. (If you want to use a number within overheads range, enter a code that’s not already in use between 70000 and 7999 for example 7901)
TypeChoose Overheads
GroupIt cannot be changed and it always has “Expenditures” as default
VAT RateSelect “No VAT”
VisibilityLeave it as is
  • Finally, press “Save

Related article: How to do Credit Card Processing in Sage 50

How to Record Credit Card Payments?

If you wish to record credit card payments in your Sage account, you have to follow he below mentioned steps:

  • Go to Banking and thenselect the credit card account
  • Now, press New Entry and then hit Money Out
  • Next, ensure that the below information is filled in the respective columns or key in the details:
Contact(optional)If the payment has to be recorded against a specific supplier, enter their name here.
Paid from Bank Account *Choose your credit card bank account.
MethodSelect the required payment method.
Date Paid *Enter the date of the payment.
Reference (optional)If required, enter a reference.
Amount Paid *Input the total amount of the payment.
OwedThis shows any amount that you currently owe to the selected supplier.
Bank BalanceThis shows the current bank balance for the account you have selected.
CategoryThe default purchase category appears. You can change this if you want.
DetailsUse this column to enter additional information about your purchase like what was the item, etc.
VAT RateChoose the accurate VAT rate for the transaction. The VAT is incorporated in the total value and the correct breakdown can be seen on your return.
TotalThis is set to default which is usually “Amount Paid”, but you can change it if you want.

These Details are Mandatory:

  • If the payment you are trying to records is for more than one item with more than one value in multiple categories and different VAT rates, you will have to enter each item in a separate line
  • Lastly, press Save.

Also Read: Credit card Reconciliation in Sage 50

Final Words!

During any point in the various methods of how to setup credit cards for sales or purchases as payment type , if you feel stuck or come across any technical or software related problem, do not worry.

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You can contact our extremely professional and highly skilled support staff via telephone or email and we will do our best to ensure that all your concerns are taken care of right away.


🔔 Frequently Asked Questions

Q1. How do I Access the Payment Center in Sage?

Ans: You must know that the Sage Payment Center is automatically embedded in the Sage 50 software and it comes packed with all the necessary tools and features that you require to make incoming and outcoming transactions smoother and faster. This, in turn, allows you the peace of mind and extra time that you require to operate your business hassle-free.

Q2. How Many Linked Accounts do I Need for Setting Credit Cards in “Sales”?

Ans: For Sales, or Credit Card Accepted, you need to link two accounts with the credit card:
💠 The expense account that records commissions
💠 The asset account for the receivable portion

Q3. How Many Linked Accounts Should I Put for Setting up Credit Cards in “Purchases”?

Ans: For Purchases, or Credit Cards Used, your credit card needs to be linked with two accounts:
💠 The expense account that records interests and annual fee
💠 The liability account for the payable portion

Q4. Can I Record Credit Card Refunds in Sage?

Ans: Yes, of course. If you have received a refund on your credit card, you can record it by going to Banking > Required Bank Account > New Entry > Money In (from dropdown) > Enter exact details as the refund amount you are processing > Save.

Summary

setup credit cards for sales or purchases as payment type
Article Name: How do I Setup Credit Cards for Sales or Purchases as Payment Type?
Description: In the above blog, we are explaining how to setup credit cards for sales or purchases as payment type in Sage software in simple steps. Setting up payment...
Author Name: Nency Willims
Publisher Name: Accountingadvice.co

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