Categorizing corporate credit card when charges and payments are in two different accounts?
Just_Lurking
Member Posts: 31 ✭✭
Apologies if this is a very basic question.
I have a new corporate credit card. Although I only have one card, my bank's system is designed so that multiple cards can be rolled up into a "master" corporate card, and then the monthly balance for all the cards can be paid from the master roll-up account.
As a result, the transactions that import into Wave are shown like this:
Credit Card 1 - This account is where all my business credit card expenses live.
Corp. Card - This is the master rollup account. None of the expenses are reflected here, but all the monthly payments I make to the credit card company are reflected here.
Business Checking Account - This account is from where the payments to "Corp. Card" are deducted.
The flow goes like this:
I charge certain business expenses to "Credit Card 1," let's say $200.
The following month, I pay off the balance by transferring $200 from my "Business Checking Account." However, the payment is received into the "Corp. Card" account, not the "Credit Card 1" account.
I'm familiar with the help article which explains how to categorize credit card payments or other transfers between two accounts.
But I'm still quite puzzled as to how to handle my three accounts. Would love any suggestions or guidance. Thanks!
Comments
Hi @Just_Lurking.
I think you'd just have to add another transfer from Corp Card to ** Credit Card 1**. Essentially, you'd just be treating Corp Card like a middle-man account.
You could also make the entire transaction a single journal entry that would look like this:
This will account for everything in a single transaction. Either way to do it would be accurate, so it really comes down to what fits your workflow best.
Thank you @Alexia. I figured I was probably overthinking this. I will experiment with your suggestion and report back.
Hi, @Just_Lurking.
If you want to test it out safely, I recommend making a test-business to use as a sandbox when you're just trying to see if something works. That way, you can mess a few things up without affecting your real numbers. It's what we do ourselves and it's unfailingly useful.
Appreciate if Wave can come up with a demo account sandbox kind of which we can experiment around as a good learning point with filled up data.
Hi, @Kenj.
This isn't something Wave does by default, but you can create a second business as a test account. Here's how you would do that.
Thanks @Alexia - your suggestion appears to have done the trick.
The workflow I've used so far is to add another transfer from Corp Card to CC 1, which makes logical sense in my brain. It's been a bit of a hassle so far, because sometimes I forget to put the amount in and then once created, Wave doesn't seem to allow transfer transactions to be edited. I've been resorting to deleting the transfers and creating new ones when this happens.
When time allows I will experiment in a dummy account (thanks also for the suggestion) and see if perhaps a journal entry would be faster and less error-prone. I'm thinking I can keep the imported transactions (which are easy to categorize) and then simply add a journal entry for the Corp Card to CC1 transaction.
Happy to help @Just_Lurking!