How do I 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
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 chart||Leave this checked|
|Category Name||Enter a name for the account (e.g. Credit Card Charges)|
|Display Name||Enter display name (e.g. Credit Card Charges)|
|Category Code||Enter 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)|
|Group||It cannot be changed and it always has “Expenditures” as default|
|VAT Rate||Select “No VAT”|
|Visibility||Leave 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.|
|Method||Select 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.|
|Owed||This shows any amount that you currently owe to the selected supplier.|
|Bank Balance||This shows the current bank balance for the account you have selected.|
|Category||The default purchase category appears. You can change this if you want.|
|Details||Use this column to enter additional information about your purchase like what was the item, etc.|
|VAT Rate||Choose 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.|
|Total||This 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
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.
You can contact our extremely professional and highly skilled support staff via telephone 1800 964 3096 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.
We have been informed by many users of Sage 50 that they have faced regular issues while opening th...
Form 1095-A is a tax form issued by the Health Insurance Marketplace (also known as the Exchange) t...
Hey there! Are you frustrated with the “Sage 50 user already logged in” error? Don’t worry, many Sa...
Sage Payment Solutions is a smart and simple business solution that assists in making payments and m...