Credit card feeds

Matt Piechota

We're just setting up Credit Card feeds in FE NXT. The webinar said to pick a liability account other than the A/P account as a clearing account for credit card transactions. However, I'm not sure why. When we cut a check at the end of the month to pay the credit card statement it's going run through our A/P module and debit our usual A/P account. Any insight would be appreciated Thanks.

Nikki Baldwin

Hi Matt,


I can help clarify the process but overall, the reason you want to use a CC liability instead of the AP liability is so you'll be able to have vendor-level view on your reporting for those CC transactions. For example, if you run an account distribution report, you can filter on your CC liability account to see transactions that were paid by CC to the actual vendor that charged you. If everything is in the AP liability, then in your reporting, it's going to be difficult to discern between the CC transactions and your regular invoices. It all gets washed out in the end (see below) but it's more beneficial from a reporting/tracking standpoint on the AP side.


CC Charge:

Dr Expense

Cr CC liability

Invoice to Pay CC:

Dr CC liability

Cr AP Summary

Payment of said invoice:

Dr AP summary

Cr Cash


If you use the AP summary for everything, you've then got this:


CC Charge:

Dr Exp

Cr AP Summary

Invoice to Pay CC:

Dr AP summary

CR AP Summary

Payment of said invoice

Dr AP summary

Cr Cash



Hope this helps!

Angela Tuttle

May I ask what bank you are using? Our bank is not connected and we are trying to see what banks are. Thanks!!!

Matt Piechota

Our credit cards are through Bank of America. The linking process was fairly straightforward.

Matt Piechota

Hi - I have another question on credit cards. Often, one of our employees will use a credit card at a vendor that is not set up in our AP module. What happens then - do we expect the employee to create a new vendor? Or is there a way for them to use a default vendor and we (the Business Office) can change it on the back end?


Thanks.

Tricia Fourman

Vendor is not a required field if they are reconciling the charge through Expense Management. You can have them leave it blank and fill it in for them on the back end.