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what is the process of recording payment done by card to vendor? what would be FI entries?

dextor-ks
Explorer
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1,820

Hi

What is the process of issuing a lodge card or virtual card?

I would like to know the process of payment to Vendors through virtual cards / credit card / lodge cards?

What entries would go with these in GLs? How is bank liability recorded and settled when the card statement is received? how do we match the payments and card statement transactions? What would be the due date on the liability?

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Answers (1)

Answers (1)

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi dextor-ks

It would have helped if you could have provided a bit more details around your applications as well. Typically, vendor payments through credit card is a very common scenario in the Expense to Reimburse cycle, where employees travel for business and use credit cards to pay for the expenses incurred during the travel. Do you have such a scenario?

Thanks & Regards

Sanil Bhandari

dextor-ks
Explorer
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Hi Sanil

Thank you for the feedback. Actually I have to respond based on the following question put to me with regards to any version of SAP ERP or Hana, FI treatment including journal entries.

"What are the accounting entries when a cheque is issued to supplier?

What happens if cheque goes stales or time barred?

What is the process of replacing a time barred cheque?

What is the process of issuing a lodge card or virtual card to supplier?

What is the process of recording a payment done by card to suppliers?

How is the liability to bank is recorded?

Especially what is the due date on that liability?

How is the credit card bill from the bank is recorded?

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi

Please find the below responses:

What are the accounting entries when a cheque is issued to supplier?

Vendor Account Dr

To Bank Outgoing A/c Cr

What happens if cheque goes stales or time barred?

You could issue a new cheque through a manual process and record the same using T code FCH5 or reverse the payment document and issue a new payment using F110

What is the process of replacing a time barred cheque?

Well the time barred cheque would mean a stale cheque and you should follow the process as listed in the previous question

What is the process of issuing a lodge card or virtual card to supplier?

Please refer to my remark in initial answer: What is the process requirement, typically a lodge card is a kind of corporate card issued to employees and they make payments on behalf of companies. If that is the case, please check if you have Concur Integration in place or not? It very well address this requirement including integration with credit card companies as well. If you are an end user, please check with your IT Colleagues on the same. The way accounting is done is a bit different with concur than a standalone ERP system and that is why I have asking further details

What is the process of recording a payment done by card to suppliers?

This is related to the previous question

How is the liability to bank is recorded?

Do you have concur integration in place

Especially what is the due date on that liability?

Kindly advise if you have concur integration in place

How is the credit card bill from the bank is recorded?

Again the same issue: Do you have concur integration in place?

Most of the questions asked by you are more of the queries to be answered by your business owner and than you should adopt the technology to your business requirements. There are tool available in SAP's portfolio which can to a large extent meet the requirements.

Thanks & Regards

Sanil Bhandari