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Proper Handeling of Credit Card Purchases/Expenses in Odoo V8

By
Tim Drinkwater
on 1/16/15, 10:57 AM 1,537 views

What is the proper way to handle CC purchases in Odoo v8? 

I'm not referring to a customer making a CC purchase but for instance when the company buys lunch for the employees and it is charged to a company CC.  Ursa has a great module for v7 https://www.odoo.com/apps/7.0/account_payment_cc/ but it does not appear to have been ported to v8. 

Is the functionallity of that module now included in v8? 

Can you be more specific? Are you talking about having an intermediate account in order to know how much you owe the credit card company until you pay them? Please elaborate.

Fabrice Henrion (fhe)
on 1/17/15, 5:39 PM

@Fabrice Henrion For us, as a small business in the USA we are most familiar with how Quickbooks is handling credit card expenses.  Any Chart Account with the type "Credit Card" as set on the chart of accounts automatically shows up as an available option when "Paying Bills".  The use of that option clears the AP to the Supplier(per amount paid), and adds the liability to the Chart Account associated to that Credit Card.  For me that is very simple method.  It is only one General Journal entry to the system.  Debit Accounts Payable(with Supplier Name) and Credit the Credit Card Chart Account. Credit Card chart accounts are reconciled just like bank accounts when the statement comes in. Typically I just record payments we make to the credit card company as a "Transfer" from the bank account to the Chart Account associated with the credit card.  This transfer is again just one General Journal entry, crediting (reducing) bank balance and debiting (reducing) credit card liability.  I don't create a "Bill" or Supplier Invoice from the credit card company, I don't feel that is necessary.

Cliff Kujala
on 1/17/15, 9:40 PM

Cliff, thanks for the explanation. Based on what you say, it seems pretty easy and standard in Odoo. It is the exact same behavior than for a bank account. So it looks like all you need to do is create a journal for your credit card and use it when you pay a supplier invoice. The journal entries will be created as you mentioned. Did you face any hurdle when trying to do this? Or maybe I'm missing something.

Fabrice Henrion (fhe)
on 1/18/15, 3:52 PM
Hi Fabrice,

No I think you are correct.  I’m new to Odoo, and didn’t know until just after my post that it worked this way.  Create a Journal per payment method (credit card) and setup the Debit/Credit accounts to link to the Chart Account which represents the liability for each respective credit card.

However.  I would suggest/request a modification to the Journal settings.  There should be a boolean on the Advanced Settings pane (or another) which allows admins to label the journals as available methods for Customer and Supplier Payments.  As it is now, if you add in a Journal for a company credit card with the intent to use that as a Supplier Payment method, it will also always show up as an available option when recording Customer Payments (and vice a versa).  This could cause confusion for salespersons/accounting as they would be presented with too many options.  Imagine a salesperson in a hurry, accepting a VISA card payment from customer (which we run manually outside Odoo but record to an Undeposited Funds Journal), but that salesperson accidentally records the payment to the VISA Company Card journal.  

Yes of course we can name them clearly so as to minimize the errors, but a filter would be best. 

Thank you,

Cliff Kujala
Pure Karting, LLC
Retailer of High Quality Karting Components
t.602.492.KART
f.623.240.1050




On Jan 18, 2015, at 1:52 PM, Fabrice Henrion (fhe) <fhe@odoo.com> wrote:

Cliff, thanks for the explanation. Based on what you say, it seems pretty easy and standard in Odoo. It is the exact same behavior than for a bank account. So it looks like all you need to do is create a journal for your credit card and use it when you pay a supplier invoice. The journal entries will be created as you mentioned. Did you face any hurdle when trying to do this? Or maybe I'm missing something.

__
Fabrice Henrion
Director Americas

Odoo Inc.
51 Federal Street, Suite 401
San Francisco, CA 94107
Tel: +1 (650) 307-6736
http://www.openerp.com


Sent by Odoo Inc. using Odoo about Forum Post Proper Handeling of Credit Card Purchases/Expenses in Odoo V8

Cliff Kujala
on 1/18/15, 11:33 PM

I'm am also new to Odoo so my terminology may be incorrect. Yes setting up a bank account (loan) journal is correct however the AP still needs to be dealt with. Let me attempt to illustrate. --Company purchases a pizza from Pizza King - Company now has a liability to Pizza King --Company uses a CC to pay Pizza King - Company in essence takes a loan from CC company to pay Pizza King --Company needs to record a purchase from Pizza King but the AP/liability for that purchase needs to be recorded to the CC company. --Company writes a check to CC company for all purchases in the last 30 days. This video from Ursa discusses the concern at approximately 48:10. https://www.youtube.com/watch?v=TaaiKkSYh8k In fact I now notice that Ursa had OpenERP write the module for them. I hope that helps to clarify.

Tim Drinkwater
on 1/19/15, 9:06 AM

It seems that my previous comment lost of it's formatting. Let me try again.

Tim

Tim Drinkwater
on 1/20/15, 10:35 AM

I'm am also new to Odoo so my terminology may be incorrect.

Yes setting up a bank account (loan) journal is correct however the AP still needs to be dealt with. Let me attempt to illustrate.

  • Company purchases a pizza from Pizza King - Company now has a liability to Pizza King
  • Company uses a CC to pay Pizza King - Company in essence takes a loan from CC company to pay Pizza King
  • Company needs to record a purchase from Pizza King but the AP/liability for that purchase needs to be recorded to the CC company.
  • Company writes a check to CC company for all purchases in the last 30 days.

This video from Ursa discusses the concern at approximately 48:10. https://www.youtube.com/watch?v=TaaiKkSYh8k

In fact I now notice that Ursa had OpenERP write the module for them. I hope that helps to clarify.

Tim Drinkwater
on 1/20/15, 10:39 AM

Tim did you ever find an answer?

David
on 2/18/16, 9:51 PM
Thanks David, but I am no longer using Odoo. I am using a system of my own design, but thanks for checking back.


On Thursday, February 18, 2016 9:51 PM, David <dboyajian-me.com@mail.odoo.com> wrote:



Tim did you ever find an answer?
--
David
Sent by Odoo Inc. using Odoo


James Kretlow
on 2/19/16, 8:46 AM

David, No did not find a solution. The deployment involved when I originally posed the question never came to light. Now however I hope I'll be able to find a solution for Odoo 9 as we now intend to move ahead.

Tim Drinkwater
on 3/3/16, 11:57 AM
0
Danny
On 3/14/16, 4:31 PM

Hi, did you find a solution for this? tks!

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Asked: 1/16/15, 10:57 AM
Seen: 1537 times
Last updated: 9/24/16, 7:06 PM