I'm not sure how to clear out the postings you already have to tie, but here is the proper way to handle credit card payments....taken directly from our Confessions of a Dynamics GP Consultant.
Credit or bank debit cards can be used in a variety of manners to pay vendors. Advance deposits, travel expenses, and payments to trade vendors can all be made using credit or bank debit cards.
Let's first look at the accounting side of this process and then review the transaction entry sequence.
When a standard vendor invoice is posted to Accounts Payable, the individual expense accounts for the items purchased are debited along with any freight, miscellaneous, and tax accounts. An offsetting credit is posted to the accounts payable account associated with the vendor.
When a cash (or check) payment is made to the vendor, the vendor's accounts payable account is debited for the amount of the payment with an offsetting credit to the appropriate cash account.
Credit card payments are only slightly different.
The vendor's invoice is vouchered and posted in exactly the same manner, just as if a cash payment would be used to pay off the bill. And, when a credit card is used to pay the bill, the vendor's accounts payable account is debited. The offsetting credit, however, is made to the accounts payable account associated with the credit card vendor. At this point, no further debt is owed to the original vendor but a debt is now owed to the credit card vendor.
Finally, when the credit card bill is paid, cash is credited and the credit card vendor's accounts payable account is debited.
The two different transaction sets are shown to the right. The first two transactions represent the vouchering of a purchase from a vendor and the payment of that vendor with cash or check. The next three transactions represent the vouchering of a vendor's invoice and the use of a credit card to pay off that invoice. This is then followed by a payment to the credit card vendor from the cash account.
Notice in these two transaction sets that the vouchering to the original vendor are identical. The purchases are all debited based on the posting of the vendor's invoice. From that point, the payment method is the difference, with the first set paid directly by cash and the second set first paid by transferring the debt to the credit card and then a payment to the credit card vendor.
So let's look at how some real world transactions are handled.
　
Setting Up Credit/Bank Cards
When credit/bank cards are setup in Dynamics GP, a vendor is associated with each card. This vendor is the bank or credit card agency issuing the card and to whom the ultimate payments are sent.
These vendors will need an Accounts Payable account just like any other vendor. The same trade payables account can be used. However, a separate credit cards payable account is frequently seen.
　
Paying Vendors With Credit Cards
Paying a vendor with a credit card transfers the debt from the vendor's account to the credit card account. Similar to a cash or check payment, the credit card is used to pay invoices vouchered to the vendor's account. Since each vendor invoice has already been expensed to the various accounts for the products purchased, only a transfer of the payable amount from trade payables to credit card payables is made.
Vendor accounts are paid via credit cards using the Payables Manual Payment Entry screen (Transactions->Payables->Manual Payment). This screen provides for the payment of selected vendor invoices using a manual check, direct cash payment, or a credit card.
When a payment is entered in the Payables Manual Payment Entry screen, the credit card to be used to make the payment is selected. The open vendor invoices to be paid are selected using the Apply button exactly as if a manual check or cash was being used. When the transaction is posted, the vendor invoices are marked paid in the amounts applied and the debt is transferred to the credit card.
Later, when the credit card statement arrives, a charge will be seen on that statement matching the payment made. Examining the account of the vendor associated with the credit card, a matching charge will be found. Reconciling the credit card statement is a matter of matching the entries on the credit card statement with the list of open payables in the credit card vendor's account. It is not necessary to chase down the account of each vendor where purchases were made since the "payment" of those accounts with the credit card has transferred the debt to the credit card vendor's account.
　
Travel Expenses
Most travel expenses involve an employee using a company credit card while on a business trip. Expenses such as air fare, hotel, rental cars, and meals are charged to the company card. At some point, the employee turns in (hopefully) the receipts.
In most cases, firms will post these transactions directly to the credit card vendor and distribute the expenses to the appropriate accounts. It is not necessary to create separate vendors for each hotel, airline, et cetera. The only reason to create individual vendors would be the case of direct bill services. But then again, if the hotel is billing the company directly, the charges would not appear on the credit card statement.
　
Reconciling the Credit Card Account
When the credit card bill arrives, each of the items listed on the statement should match an open payable entry for the credit card vendor. Look for any service fees or interest charges and enter and post a payables voucher for those charges.
Once the statement matches the Vendor's Aged Trial Balance, the open items can be selected for payment and a check cut to the credit card vendor.
Its a bit long but I hope that helps. The rest of the book is available from our web site. I(This little trick was written by Leslie Vail!)
　
　
　
