[Question] Transfer between credit card and Bank account in Pastel

[bamani]

Hi,

Please I would like to transfer money from my current account to petty cash or Credit card on Pastel express V12 How to do that?

Thanks for your help

[Neville Bailey]

I presume that you have set up cash books for each of these accounts.

You also need to create a balance sheet account and call it something like "Cash Transfer Account".

If you want to process a transfer from the current account to the credit card account, first capture a cash book payments journal entry in the current account cash book and allocate it to the Cash Transfer Account. Then capture a cash book receipts journal in the credit card cash book and allocate it to the same Cash Transfer Account.

The net effect is that the Cash Transfer Account will have a zero balance.

[SSS100]

Hi Neville,
Can't you transfer directly to the credit card and eliminate extra leg?

[Neville Bailey]

If you don't do the two legs in each cash book, then you won't see the receipt in the bank recon of the receiving cash book, nor will the receipt show on the cash book details report of the receiving cash book.

[bamani]

Thank you Neville , and thank you also SSS100 for your question it was helpful the why not?

[SSS100]

Thanks Neville, much appreciated

[Daisy83]

OOps i had the same question just a little more detailed. For example when your have a payment into your credit card that is not from your current debit account must i ?
Do i then allocate the payment for example to the directors loan account? (Depending from where the payment was made) Then also another question do i contra all the transactions toward the transfer control account or only the current debit card transactions. Example if we used the credit card for a specific thing example stationary do i contra the relevant account?
And how will i go about reconciliation on the credit card statement. ?
Appreciate any feedback.

[Kevin Smith]

Hi Daisy

Is your credit card setup as a cashbook in Pastel? What version of Pastel are you running? (The later versions can create a cashbook automatically, so there are different steps to follow between older and newer version).
You would normally receipt the "cash" from the directors loan account into that cashbook, then record the supplier/expense payment, allowing you to recon the card balance as a normal cashbook.
You would contra the expense account - check your batch settings and ensure you have Tax processing enabled on the payments batch (if required and paying directly against GL accounts)

[Daisy83]

Thank you so much for the advice, one last thing i would like to know. The credit card is setup as a cashbook with a transfer control account in pastel 18.1 express.
When i reconcile the credit card statement would i enter all entries as a normal cashbook? When i reconcile the statement i have to put a - in front of the amount outstanding on the credit card.(otherwise it does not balance with the amount on statement) Why is it not showing that i still owe the money to the bank? Instead its shown as a credit into the TB.
Do i need to enter the credit limit somewhere so rectify this. My first time working with a credit card on pastel... So the balance on the credit card shows a - in the totals...

any feed back would be appreciated,

[Kevin Smith]

Yes. You would capture the payments side of the cashbook in the Credit Card cashbook. If you are using the cashbook transfer function from your "main cashbook account", it would create the receipt side of the entry in the CC cashbook when you pay the credit card from the main account. If you are not using the cashbook transfer and are posting to a cash clearing account, you would make the payment from the main account to cash clearing and then have to complete the receipt in the Credit Card cashbook, also against cash clearing.

When you do the credit card cashbook reconciliation, you would owe that money to the bank for a period of time, until you settle the balance at month end. This would be a liability, and would be a credit, hence the -ve required during the recon process.