If you have not done so already, be sure to Add the Credit Card under the Banks & Registers tab in the Accounting module.

How Do I Record Credit Card Charges and Payments in CARET Legal?

Credit card transactions fall into two categories:

• Credit card charges: Purchases made with the credit card. Charges may be billable to a client or recorded as non-billable firm expenses.
• Credit card payments: Payments made toward the credit card balance. These reduce the amount owed on the card and should not be recorded as new expenses.

Record Non-Billable Credit Card Charges

Non-billable credit card charges can be recorded in either of the following ways:

• Create a Journal Entry.
• Import the charge through Download and Review , then assign it to the appropriate general ledger account.

Record Billable Credit Card Charges

To record a credit card charge that will be billed to a client:

1. Navigate to Accounting > Banks & Registers.

2. Select + from the action bar, then select New Credit Card Entry.
   

   Alternatively, navigate to Time > Expenses, select +, and then select New Credit Card (hard-cost).

3. The Record Credit Card Transactions window displays. Complete the required fields marked with a purple bar:
   • Account
   • Payable to
   • Date
   • Amount
     
4. Complete any applicable optional fields.
5. Under Assign Accounts & Matters:
   • Select or enter the applicable client account and matter.
   • Enter the amount to be billed.
   • Select the applicable user or accept the default originator.
   • Select + to add additional line items, if necessary.
   • Select Attach Bill/Receipt to add supporting documentation.
6. Select Save & Close.

Record a Payment Toward the Credit Card Balance

A payment toward the credit card balance is different from a credit card charge. The charge records the original expense, while the payment reduces the amount owed on the credit card.

CARET Legal supports the following methods for recording a credit card payment:

Option 1: Create a Journal Entry

Create a journal entry that:

• Credits the operating bank account from which the payment was made.
• Debits the applicable credit card account.

Option 2: Create a Hard Cost/AP Check

Create a Hard Cost/AP Check from the operating bank account and assign a single line item to the applicable credit card account. This records the funds leaving the operating account and being applied to the credit card register.

Option 3: Use a Vendor Bill

If you manage the credit card through the Vendor Bills module instead of maintaining a credit card register:

1. Create a vendor for the credit card provider.
2. Create a vendor bill when you receive the credit card statement.
3. Assign the statement's line items to the appropriate general ledger accounts.
4. Pay the vendor bill when the credit card payment is made.

For additional details, see How Do I Record Payments to My Credit Card? 

CARET Legal recommends maintaining a separate register for each credit card so that charges, payments, and the outstanding balance can be tracked in one place.