MU Credit Card Transactions in QuickBooks Council
Contents
1. the credit card amounts are posted as Undeposited funds to the accounting system on the credit card transaction date Disadvantage Two step method create sales receipt plus deposit transaction later Two layers of posting Sales Item plus income expense if reduction of expense account Create a new Sales Create a Sales Move sales amount to Item when needed Receipt for credit Deposit Transaction when card transaction amount is deposited in bank account Create Item for Customer Income Before creating a Sales Receipts transaction appropriate sales items are required A Sales Item must be created and linked to an existing income account or expense account if reduction of expense Here is a sample list of Sales Items Look for in All fields leset Search within res Name Description Type Account O Price Farm Tax Recd Farm Tax Record FM6702 Service 900 Resales Educ Services Fees 0910 Glo Germ Glo Germ Service 100 Student Fees Manual 6 Recertification Manual Service Resales Educ Services Fees 0910 Master Wildlife Service Student Fees 0110 Non Credit Co Soil Testing Soil Testing Service Resales Educ Services Fees 0920 Student Fees Service 100 Student Fees 0114 Short Course F e Open the Item List Lists from the menu bar Item List e Select the Item button at bottom left of screen e Left click on New e Click the down arrow for Type and select Service for m2. 40 PM University Extension Council 07 19 10 Undeposited Funds Report Accrual Basis June through July 2010 Date Num Split Amount Balan 4 06 14 2010 1600271 Farm Tax R Education and Services 3200 0910 Re 07 15 2010 Ag Expo FarmTaxR Education and Services 3200 0050 Ch 65 00 0 00 lliance Water R Payment 06 22 2010 123456 Alliance Deposit 06 30 2010 123456 Alliance Deposit Education and Services 3100 Total Alliance Water Liberty Christian Chu Sales R 07 15 2010 3 a Education and Services 3700 Total Liberty Christian Ch Robert Johan Sales R 07 01 2010 1 Master Wild Education and Services 3203 Deposit 07 20 2010 Deposit Education and Services 3203 Total Robert Joha MU Credit Card Transactions in QuickBooks August 24 2010 Page 5 of 7 12 11 PM Orii5 10 Accrual Basis Date Cash and Accrual Basis University Extension Council Deposit Detail Sorted by Payment Method July 2010 Pay Meth Name f ou Class gt Amount Balance OF 06 2010 Cash Robert Johanson 0910 Resale Pu 3000 Education and Services 3200 Re 07 06 2010 Cash Soil Test frome 2 soil tests 0920 Soil Test F 3000 Education and Services 3100 So Total Cash Credit Card 07132010 Credit Card Robert Johanson Deposit Undeposit 3000 Education and Services 3203 Ma 07182010 Credit Card Ag Expo Farm Tax Re Undeposit 3
3. and check Review the Direct Deposit procedure for information on creating a new credit card payment method type If not reporting credit card fees to an expense account then skip the next bulleted item As a negative amount enter the Credit Card transaction fees using the appropriate expense account 7xxx and assign a class code related to the credit card transaction amount Credit card fees are included on the university money transfer report Multiple credit card deposits posted on the bank statement may be recorded in the same deposit screen Do not mix Cash and Check payment method types with Credit Card type A Deposit slip cannot be printed for credit card payment methods Select the Print button at the top of deposit screen to print a Deposit Summary report Save the Deposit transaction The Money Transfer Report and the Deposit Summary report should be compared to the monthly bank statement Each transaction on the Money Transfer report should be checked off when matched to the bank statement Paper clip or staple all reports and file When matched the credit card receipt should be marked as deposited and transferred to another file folder marked as completed credit card transactions Advantage less transactions only deposit transaction is created in QuickBooks Disadvantage the credit card amounts are posted to the accounting system approximately 30 days later and may not be reported within the month the credit
4. arrow and select Multiple Accounts Select all income and expense account Select 1499 Undeposited Funds if you are using the Accrual Posting Method Return to Choose Filter and select Transaction type To the right under Transaction Types select the down arrow and select Deposit Select the Header footer tab and under Report Title change the title to Deposit Detail Sorted by Payment Method or another title Select the Display tab and under Columns select Pay Meth Under Columns uncheck Type Num and Split Click OK In the report you can move the Pay Meth column to the far left if you wish MU Credit Card Transactions in QuickBooks August 24 2010 Page 6 of 7 e At the top middle of report under the Refresh button click the down arrow for Total By and select Payment Method or Customer Name e To the right of Total By select the down arrow for Sort By and select Name or Date e Select appropriate Date Range e Select Memorize button and save report in the Memorized Report List Note When the 1499 Undeposited Funds account is included in this report QuickBooks will reverse all positive and negative amounts Refund When a credit card transaction results in a Refund and the original transaction was posted in QuickBooks create a reversing transaction in the Checking Register using the same income and fee expense account and class codes as the original credit card transaction pani Refund transaction a a Depos
5. card transaction was processed This procedure is recommended when the volume of credit card transactions is low The Extension Council decides the low volume value Sample Deposit Transaction for single day or one month reporting of credit card transactions Cash Basis Received Myers John Dawn Bailey Bob Sullivan From Account Memo C PmtMeth Class Amount 0100 Student Fees 0114 Short Master Ga Credit Card 3000 Education and Services 3205 Mast 55 00 0900 Resales Educ Services Fees 3 Soil Tests Credit Card 3000 Education and Services 3100 Soil 60 00 0100 Student Fees 0120 4HE 4H Camp Credit Card 3000 Education and Services 3800 4H 110 00 7900 Credit Card Transaction Fees CC fees Credit Card 3000 Education and Services 3205 Mast 1 35 7900 Credit Card Transaction Fees CC fees Credit Card 3000 Education and Services 3100 Soil 1 45 Credit Card Transaction Fees CC fees Credit Card 3000 Education and Services 3800 4H Deposit Subtotal A Deposit Detail Report configuration is located at the end of this document MU Credit Card Transactions in QuickBooks August 24 2010 Page 2 of 7 b Accrual Basis Enter each customer credit card transaction in QuickBooks as a Sales Receipt transaction when the credit card email receipt is received The extension office will receive a Money Transfer Report in the office s email box once a month Advantage
6. 000 Education and Services 3200 Re OFAS2010 Credit Card CC fees Credit Car 3000 Education and Services 3200 Re 07132010 Credit Card CC fees 700 Credit Car 3000 Education and Services 3203 Ma Total Credit Card TOTAL Configure the Undeposited Funds Report for Accrual Basis Select Report from menu bar Select Customer Transaction Detail report Select Modify Report button Select the Filter tab Under Choose Filter select Accounts Move cursor to the right and under Account click down arrow and select 1499 Undeposited Funds account Select the Header footer tab and under Report Title change the title to Undeposited Funds Report or another title Click OK Remove the columns Clr and Account from the report Optional At the top middle of report under the Refresh button click the down arrow for Total By and select Customer To the right of Total By select the down arrow for Sort By and select Date Select appropriate Date Range Select Memorize button and save report in the Memorized Report List The Undeposited Funds outstanding balance will appear in the Balance Sheet report Configure the Deposit Detail Sorted by Payment Method for Cash and Accrual Basis Select Report from menu bar Select Customer Transaction Detail report Select Modify Report button Select the Filter tab Under Choose Filter select Accounts Move cursor to the right and under Account click down
7. MU Credit Card Transactions in QuickBooks August 24 2010 Other Resources Link to Security Awareness Course http bblearn missouri edu Link to MU User s Manual http extension missouri edu staff adminmgmt creditcard MUOff docx Link to MU Credit Card TEST site https extweb missouri edu ccc test Link to MU Credit Card processing https extweb missouri edu ccc Link to Direct Deposit amp credit card payment method http extension missouri edu acctmanual Deposits Direct o20Deposits pdf Fiscal Policies and Procedures for County Councils http extension missouri edu acctmanual policy Fiscal Policies and Procedures pdf This is an addendum to the MU Off Campus Credit Card System User s Manual This procedure explains several options available to the Council County Program Director and the Bookkeeper regarding posting of credit card transactions in QuickBooks Credit Card transactions are considered income that will be received and deposited in the future In accounting this is referred to as accrued income The customer credit card that is received for purchase of Extension products or services is not money that is available immediately but will be deposited in Council funds at a later date Temporarily in QuickBooks it is referred to as undeposited funds Credit Card Receipt After submitting a credit card transaction in the MU system an email message credit card receipt will be delivered to the extension office s email b
8. eate a new sales item Enter a description quantity and rate when appropriate Select a class code in the second class field Enter an amount Enter information in the Memo text box For the Deposit To field select 1499 Undeposited Funds The Undeposited Funds is a temporary holding account and is represented in the Chart of Accounts and Balance Sheet report e Do not select Process Credit Card payment when saving This is reserved for offices who subscribe to the QuickBooks Credit Card Service e Click Save and Close or Save and New e Print Sales Receipt and attach to MU Credit Card receipt and file in appropriate folder A copy of the Sales Receipt or the MU Credit Card receipt may be given to the customer Customer Job Class Template Frint Preview Ag Expo 3000 Ed Custom Cash Sale ki are pal Sale No Sales Receipt 07 14 2010 160021451 Sold To Check No Payment Method Credit Card x Item Description Bi Rate Amount Farm Tax Recd Farm Tax Record FM6 702 6 50 3000 Edu Customer Message V To be printed To be e mailed Memo Farm Tax Records Add Time Costs baristi 1499 Undeposited F iw Process Credit Card payment when saving Save a Close Add Sales Receipt Amount to Deposit When the credit card transactions less fees are deposited in the Council s bank account bank statement and the university money transfer report is received the sales receipt amounts are moved from
9. it Oooo a cn splits Reverse CC transaction Account Amount emit Cust Billable Class 0100 Student Fees 0114 Short 55 00 Reverse CC transaction 3000 Education and Services 3205 Master G 7900 Credit Card Transaction 35 Reverse CC Fees ow 2000 Education and Services 3205 Maste MU Credit Card Transactions in QuickBooks August 24 2010 Page 7 of 7
10. ode related to the credit card transaction amount Credit card fees are included in the university money transfer report Do not mix Cash and Check payment method types with Credit Card type A Deposit slip cannot be printed for credit card payment methods Select the Print button at the top of deposit screen to print a Deposit Summary report Click Save and Close or Save and New The Money Transfer Report and the Deposit Summary report should be compared to the monthly bank statement Each transaction on the Money Transfer report should be checked off when matched to the bank statement When matched the credit card receipt should be marked as deposited and transferred to another file folder marked as completed credit card transactions Sample Deposit Transaction Accrual Basis Recei From Account Memo C Pmt Meth Class Ag Expo 1499 Undeposited Funds Farm Tax Records Credit Card 3000 Education and Services 3200 Re 7900 Credit Card Transaction Fees CC fees Credit Card 3000 Education and Services 3200 Re Deposit Subtotal Reports County Program Director Verification It is recommended that the CPD review and initial credit card transactions and review and sign weekly or monthly Undeposited Funds Report for outstanding credit card transactions Here are two sample reports that will assist in tracking credit card transactions Report configurations follow the two illustrations For Accrual Basis Onl 12
11. on at lower left corner of screen ad Account Type Expense o Select New Account Name Credit Card Transaction Fees e Select Expense as Account Subaccount of type click continue Optional e Enter a number under 7xxx e Enter account name e If you wish to create this fee expense as a subaccount place a preceding Subaccount of Optional e Save and close MU Credit Card Transactions in QuickBooks August 24 2010 Page 1 of 7 2 Posting Method Depending on the volume of credit card transactions the Extension Financial team Extension Council the County Program Director and the County Bookkeeper may adopt one of the two following posting methods Cash or Accrual basis Whichever procedure is adopted it is recommended that the procedure be consistent during the year The Council s decision should be reported in the meeting minutes a Cash Basis Enter each customer credit card transaction in QuickBooks as a deposit transaction when the amount is deposited in the council s bank account The extension office will receive a Money Transfer Report in the office s email box once a month Post each credit card amount to the appropriate customer name income account class code in the deposit screen If the monthly distribution was a university check then enter the check number Select Credit Card as the Payment Method type if you wish to separate the credit card transactions from other payment methods such as cash
12. ost Extension related activities e Type an Item Name e The Description box is optional R Enter a rate if the rate is fixed s Saran Use for services you charge for or purchase like Oth erwi se leave th e rat e fi eld b an k R labor consulting hours or professional 5 Tees k e Under Account select appropriate Custom Fields Income Account or pense account e Coscia i soil Testing if amount received is a reductirer_of exp ense An A ccou nt i s This service is used in assemblies or is performed by a subcontractor or partner 7 oe ore _ Item is inactive Req ul red I Description Rate j Soil Testing fes k 15 00 Click OK a i Account 0900 Resales Educ Create Sales Receipt Printed Credit Card Sales Receipts may substitute for the manual receipt book Using the information provided in the MU Credit Card Receipt email message for each credit card transaction create a Sales Receipt transaction e Select Customer from the menu bar e Select Enter Sales Receipts e Select customer name or select Add New to create a new Customer Do not use a vendor name when identifying a person in the Sales Receipt screen e Enter class code e Enter date MU Credit Card Transactions in QuickBooks August 24 2010 Page 3 of 7 In Sale No field enter credit card confirmation number located on the credit card receipt Select Credit Card as Payment Method Select appropriate Item Name or select Add new to cr
13. ox The receipt includes customer name amount type of credit card confirmation number and description e Print the receipt and place it in a folder for later processing e Itis recommended that the County Program Director review and initial the receipts on a weekly or daily basis depending on the volume of transactions Monthly Distribution Once a month the University will send either a check via postal mail or a direct deposit transfer to the council s bank account The Extension office may sign up for the direct deposit transfer Review Direct Deposit procedure for credit card payment method The check total will be the net amount for all transactions within the monthly time frame Sales amount less fees Net amount Council Considerations 1 Post Gross Sales or Net Sales Amount from Monthly Distribution The Council County Program Director and the Bookkeeper may decide to post either the gross sales or net sales amount of the university s monthly distribution If council wishes to track credit card fees then separate the gross amount and fees when posting transactions in QuickBooks Whichever amount sales or net is recorded it is recommended that the procedure be consistent during the year The Council s decision should be reported in the meeting minutes Credit Card Transaction Fee Expense Account To track credit card fees create a new account under the 7xxx Select Lists een e Select Chart of Accounts Select Account butt
14. the Payments to Deposits screen to the Deposit screen Select Bank from menu bar Select Make Deposits The following Payments to Deposit screen will display if there are undeposited customer sales receipts a Payments If the screen does not display select in the Deposits Screen Select View View payment method type All types Select Payments to Deposit Insert a VY in the checkmark column for the Sales Receipt payment that was deposited in the council s bank account Click OK The Sales Receipt data will display in the Make Deposit screen MU Credit Card Transactions in QuickBooks August 24 2010 Page 4 of 7 In the Deposit Screen gt as Appropriate sales receipt data are included in the deposit screen The Account field is protected You will not be able to change the account number QB records all Sales Receipt data temporarily in an account named 1499 Undeposited Funds The Sales Receipt amount is offset in the Undeposited Funds when the amount is recorded and saved in the Deposits screen The original sales receipt transaction included the income or expense account Multiple credit card deposits reported on the bank statement may be recorded in the Same deposit screen If not reporting credit card fees to an expense account then skip the next bulleted item As a negative amount enter the Credit Card transaction fees using the appropriate expense account 7xxx and assign a class c
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