Credit cards

Credit cards are liability accounts which are set up like bank accounts.

They will always have a credit balance, as they will be used to make payments. When the credit card statement is paid, it will be recorded using a bank transfer into the account, reducing the balance.

Adding a credit card account

VAT mode (UK)

A credit card can be added by going to Accounting > Chart of accounts and clicking into the 'Current liability' section.

Click 'Add a new nominal code', and fill in the modal popup, making sure to set 'Is this a bank account?' to 'Yes'. Set your own code or leave it blank for Brightpearl to generate one, pick a currency, and decide whether to reconcile the account or not.

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Once the code has been created, it can be viewed on the bank accounts list (under Accounting > List bank accounts).

Sales tax mode (US)

In sales tax mode, the chart of accounts has a specific section called 'Credit cards'.

Click into that section and click 'Add a new account' to fill in the modal popup. Set your own code or leave it blank for Brightpearl to generate one, pick a currency, and decide whether to reconcile the account or not.

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Once the code has been created, it can be viewed on the bank accounts list (under Accounting > List bank accounts).

Payment methods

As with banks, payment methods are required to process payments and refunds against orders. If a credit card is going to be used to pay orders, a payment method must be created which should be assigned a credit card account.

Learn more about order payments and payment methods.

Accounting for credit cards

Credit cards are typically used to make payments.

When a credit card is used, a journal will be posted, debiting an expense or accounts payable, and crediting the credit card account:

Account Debit Credit
Expense, accounts payable (creditors) X  
Credit card account   X

This will result in several withdrawals on the credit card account, causing a credit balance to build.

When it comes times to pay, a bank transfer will be done from the bank account being used to pay off the statement into the credit card account:

Account Debit Credit
Credit card account X  
Bank account   X

This will reduce the credit balance.

Reconciling credit card accounts

Credit card accounts can be reconciled the same as normal bank accounts. The most important thing to remember is that even though the balances will appear as positive numbers on the statement you receive from your credit card company, the statement start and end balances as entered into Brightpearl must be negative.

Learn more about reconciling bank accounts.

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