Credit Card Expense Control

Business Central can deliver a class leading employee expense management solution. The solution maintains credit card entries, automating entries into the system to ensure transactions are maintained in real time and not just at month end.

Credit card expenses transactions can create excess finance admin requirements, generating
additional work for:

  • The Accounts Payable team as they scramble through invoices to reclaim VAT
  • Controllers as they struggle to reconcile credit card control account balances
  • Financial Directors trying to manage spend and accurately report to the board

While it should be simple, the credit card expenses process is often over complicated, unreliable, and messy.

Business Central can deliver a class leading employee expense management solution. The solution maintains credit card entries, automating entries into the system to ensure transactions are maintained in real time and not just at month end.

Business Central will link to most credit card organisations and provide an automatic daily import of transactions that can be configured in multiple ways. Here’s how it works:

Credit card expense imported via daily automation

There is a “Bank Agreement” number entered in Business Central. Credit card users are created along with a card number linked to the user (there can be multiple users of a single card).

System creates an initial entry

The system will create an initial accounting entry to the control accounts:

Dr Credit Card Expense Cr Credit Card Control account

Expense is matched to an invoice by finance or the user

The expense will then be sent either to the user or to the finance team who can attach an invoice/receipt. The expense is then submitted.

Relevant approval flow and checks take place

The submitted expense will flow through the relevant workflow and be approved, rejected or placed on hold pending query resolution. Once approved, the expense is moved to the finance workflow.

Credit card expense is finalised and posted to the system

Finance will post the expense. This can be automated so that the expense is posted on approval, but finance teams often prefer to check VAT status, etc. The system will then create the final accounting entry:

Dr Cost Cr Credit Card Expense
(Effectively moving the cost from the original bucket to the correct code.)

Summary

Credit Card Expense Control = Credit card expenses imported from the credit card statements but not yet matched to an invoice and posted. If all expenses are posted this will always be zero.

Credit Card Control Account = The Credit card liability at any point in time. This is normally cleared down monthly by the payment via a bank entry: 
Dr Credit Card Control Cr Bank.
 
Benefits
 
  • Accuracy – Credit card expenses are entered in real time, no accruals required
  • Efficiency – No finance admin required, so the team can spend time checking or posting
    accounts and on VAT treatment (and chasing users)
  • Timeliness – No month end process required, apart from potentially reclassify costs

Expense management is also available for normal employee expense claims via its dedicated portal and phone app.

Find out how Business Central will benefit your business

Get in Touch

Click the button below to submit your enquiry to our team who will get back to you as soon as possible.

Give Us a Call

Get Connected

© 2022 City Dynamics